Mach-E Financing and RCL Leasing Program Announced

[DBC]

I am glad you acknowledge that with the Option Plan you are buying the car - it is not a lease.

Ford Options is a lease structured so that the lessee can claim the tax credit. This is plainly evident. No idea why you don't get it.

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[JoseLuisDeLaCruz]

Lease:

With a 57% residual there is slim to no chance that the value of the MME will be higher than 57% and slim just left town!

Option Plan:

I am glad you acknowledge that with the Option Plan you are buying the car - it is not a lease.

Tesla:

You do know that in 99% of leases they are "upside down": the residual is substantially higher than the FMV at lease end. This is the reason that 85% of cars at the end of the lease are turned in.

Therefore, the most important part of the lease is the monthly payment - not the residual.

The Model Y, over the the term of the lease, 36 months is substantially less than either the Option Plan or a lease if the projected residual is 57%, interest of 5.4% and the Federal credit is not put into the lease as a cap cost reduction.

Bottom line: The Model Y is cheaper to lease than the MME.

What a disappointment! Even with the federal tax incentive! Wow!

 

[hybrid2bev]

Lease:

With a 57% residual there is slim to no chance that the value of the MME will be higher than 57% and slim just left town!

Option Plan:

I am glad you acknowledge that with the Option Plan you are buying the car - it is not a lease.

Tesla:

You do know that in 99% of leases they are "upside down": the residual is substantially higher than the FMV at lease end. This is the reason that 85% of cars at the end of the lease are turned in.

Therefore, the most important part of the lease is the monthly payment - not the residual.

The Model Y, over the the term of the lease, 36 months is substantially less than either the Option Plan or a lease if the projected residual is 57%, interest of 5.4% and the Federal credit is not put into the lease as a cap cost reduction.

Bottom line: The Model Y is cheaper to lease than the MME.

So you're saying the Tesla lease has artificially lower monthly payments because the residual value is improperly set too high. Got it.

I have always said that Options was a retail contract. See my post from June:
https://www.macheforum.com/site/thr...ndard-lease-similarities-and-differences.883/

Or search my post history. I've always said Options was 'lease-like' but not a lease. It's a retail installment contract with a balloon note.

 

[SoriceConsulting]

Yeah man I am with you I really hope this isn’t true!

JoseLuisDeLaCruz,

Since you're in NJ, the numbers I ran apply. You can see this thread for more details:
https://www.macheforum.com/site/thr...rcl-leasing-program-announced.2044/post-62141

Either Scenario 1 or 2 seem to be pretty good numbers for us NJ folks. You can walk away from the Options Plan at the end of 36 months and pay about $567/month or $495/month. The thing to keep in mind is that the money down ($12,500 or $15,000) is not coming out of your pocket (although you'll have to 'front' the $7,500 and await your Fed credit - just be sure you qualify).

Here is a summary:

I ran 2 scenarios through leaseguide.com. Here is how I got my input numbers:

> Prem/AWD/LR = $55,800 ($54,700 + $1,100 D/D)
Less X plan discount of $841 ($55,800 x 2% = $1,116, less $275 fee = $841)
Final Cost = $54,960 (55,800 - 841)

> Fed credit = $7,500

> NJ rebate = $5,000

> Options incentive = $2,500 (not sure if I'll get this so I ran one with and one without)

> NJ sales tax on purchase = $0 (NJ does not collect sales tax on EVs)

I used the $7,500 credit/ $5,000 rebate as down payment for scenario 1 ($12,500)
I used the $7,500 credit/ $5,000 rebate / $2,500 incentive for scenario 2 ($15,000)

Not exactly sure what the residual would be, so I used the one that appears in post #270 ($24,552)

So, at Options end, I've paid
> $20,241 (36 x 567.25) in scenario 1.
> $17,827.20 (36 x 495.20) in scenario 2.

And could then buy it for $24,552, for a total cost to own of
> $44,793.00 in scenario 1.
> $42,379.20 in scenario 2.

I could also get $24,552 towards a new MachE (or less, or more? Not sure - guess that would depend on the market value at the time? Or will Ford guarantee me $24,552 towards a new MachE? No idea if the residual would be a guaranteed amount on a trade in for another MachE).
I'm assuming my numbers are way off (never 'leased' in my life - always bought), since this looks like a pretty good deal for my situation.

Scenario 1:

Scenario 2:

 

[JoseLuisDeLaCruz]

JoseLuisDeLaCruz,

Since you're in NJ, the numbers I ran apply. You can see this thread for more details:
https://www.macheforum.com/site/thr...rcl-leasing-program-announced.2044/post-62141

Either Scenario 1 or 2 seem to be pretty good numbers for us NJ folks. You can walk away from the Options Plan at the end of 36 months and pay about $567/month or $495/month. The thing to keep in mind is that the money down ($12,500 or $15,000) is not coming out of your pocket (although you'll have to 'front' the $7,500 and await your Fed credit - just be sure you qualify).

Here is a summary:

I ran 2 scenarios through leaseguide.com. Here is how I got my input numbers:

> Prem/AWD/LR = $55,800 ($54,700 + $1,100 D/D)
Less X plan discount of $841 ($55,800 x 2% = $1,116, less $275 fee = $841)
Final Cost = $54,960 (55,800 - 841)

> Fed credit = $7,500

> NJ rebate = $5,000

> Options incentive = $2,500 (not sure if I'll get this so I ran one with and one without)

> NJ sales tax on purchase = $0 (NJ does not collect sales tax on EVs)

I used the $7,500 credit/ $5,000 rebate as down payment for scenario 1 ($12,500)
I used the $7,500 credit/ $5,000 rebate / $2,500 incentive for scenario 2 ($15,000)

Not exactly sure what the residual would be, so I used the one that appears in post #270 ($24,552)

So, at Options end, I've paid
> $20,241 (36 x 567.25) in scenario 1.
> $17,827.20 (36 x 495.20) in scenario 2.

And could then buy it for $24,552, for a total cost to own of
> $44,793.00 in scenario 1.
> $42,379.20 in scenario 2.

I could also get $24,552 towards a new MachE (or less, or more? Not sure - guess that would depend on the market value at the time? Or will Ford guarantee me $24,552 towards a new MachE? No idea if the residual would be a guaranteed amount on a trade in for another MachE).
I'm assuming my numbers are way off (never 'leased' in my life - always bought), since this looks like a pretty good deal for my situation.

Scenario 1:

Scenario 2:

What if I don't want to front the $7,500 what are the numbers for a regular lease?

 

[Maric]

Thing is with Tesla, you can't buy the car at the end of the lease. Neither Ford Options or the other Ford Lease program are really equivalent to Tesla's Lease because in both Ford scenarios you 'can' buy the MachE at the end of the lease.

https://insideevs.com/features/4470... the Model 3, when,of almost all other leases.

 

[Ma9573]

Man, I've only ever financed my 3 previous Ford vehicles at 0% interest, so the 1.9% financing rate for 60 months (.9 for shorter terms) combined with this Options plan I've never heard of before throws a bit of a wrinkle lolol (I'm in sales and even though my driving has dropped from 2.5k miles a month to a little under 1.5k due to Covid, that still makes traditional leasing a no go).

Using the calculator on the Ford site while I'm in my Energi charging up, it looks like the Options plan qualifies for a $2500 discount (for now), but financing does not. I'll definitely be putting together a spreadsheet tonight to figure it all out ?

 

[macchiaz-o]

Man, I've only ever financed my 3 previous Ford vehicles at 0% interest, so the 1.9% financing rate for 60 months (.9 for shorter terms) combined with this Options plan I've never heard of before throws a bit of a wrinkle lolol (I'm in sales and even though my driving has dropped from 2.5k miles a month to a little under 1.5k due to Covid, that still makes traditional leasing a no go).

Using the calculator on the Ford site while I'm in my Energi charging up, it looks like the Options plan qualifies for a $2500 discount (for now), but financing does not. I'll definitely be putting together a spreadsheet tonight to figure it all out ?

Numbers may change by the time you're ready to complete the sale.

I plan to be ready to pay cash and will have them run numbers at the dealership to see if there is a better alternative for me.

 

[JoseLuisDeLaCruz]

Thing is with Tesla, you can't buy the car at the end of the lease. Neither Ford Options or the other Ford Lease program are really equivalent to Tesla's Lease because in both Ford scenarios you 'can' buy the MachE at the end of the lease.

https://insideevs.com/features/447028/video-tesla-model-y-lease-buying-advice/#:~:text=Like the Model 3, when,of almost all other leases.

I am not interested in buying after lease is done at all. I want to get the newest latest tech.

 

[SoriceConsulting]

What if I don't want to front the $7,500 what are the numbers for a regular lease?

Not sure, but I know they're not good. Unless something changes I'm either going with Ford Options or will wait it out and look at other EVs (Nissan Ariya looks like a contender).

 

[JoseLuisDeLaCruz]

Not sure, but I know they're not good. Unless something changes I'm either going with Ford Options or will wait it out and look at other EVs (Nissan Ariya looks like a contender).

Ay yay yay!

 

[kdryden99]

At this point I will wait since the numbers I get on Ford.ca's site doesn't make any sense (the lease is 300$ more than the finance!). I suggest everybody do the same. There is still plenty of time for changes and there can be mistakes with the calculators. When you go to pick up the car just properly look at the numbers.

As they say knowledge is power. If you go in there knowing what your limits are and what you are willing to pay or not to pay and what everything else costs on the market you can decide then. If the numbers stay the same as those on the Ford.ca's site I won't take ownership not because I don't want the car but because I can't afford it. Other people who saw the numbers that are currently posted (friends of mine) won't take it either even though they can afford it. (3 other Mach-E premiums). So instead of doing what I did (freak out). Wait and see. Mistakes can be made, changes can occur.

 

[ClaudeMach-E]

I’m starting to see the early signs of some very faint hints that maybe, just maybe, Ford Credit isn’t much interested in leasing the Mach. Nothing specific, just a hunch.

I would agree with you for us here in Canada. I'm starting to think that Ford knows something forthcoming in technology either battery or else that would make the buyback price of the actual MME's so low after 3 or 4 years of lease. We must admit that there was lot's of battery tech announcement lately like GM Ultium, Tesla new batteries and also the development of solid state batteries, besides that's always what is happening with tech, just remember the first VHF.

 

[SoriceConsulting]

Ay yay yay!

As I said, the Nissan Ariya looks like a solid contender. I've owned several Nisan Muranos and have never, ever had a problem with them.

Definite dilemma. I love the look/features of the MachE, but the Ariya is a very compelling alternative - and the pricing is very competitive.

 

[kdryden99]

As I said, the Nissan Ariya looks like a solid contender. I've owned several Nisan Muranos and have never, ever had a problem with them.

Definite dilemma. I love the look/features of the MachE, but the Ariya is a very compelling alternative - and the pricing is very competitive.

Had a Murano, tranny went after 216000kms warranty covered until 200k kms. Paid to switch, new tranny defective, switched under warranty. Then 3 months later AC went. Traded it in for a brand new Rogue. 3 yrs later tranny had issues. switched tranny oil pump under warranty. Now several places with rust and corrosion starting even though car was rust proofed and paint treated. Paint quality is shit.
I probably own the last best Nissan made 2004 Sentra SpecV. I dont trust any of their new cars. You wont find many big nissan fans like me. I am pretty good friends with the service dept guys at my delership but I told them that the Rogue will be my last Nissan for a while cause i dont trust the quality. They told me its something that other customers have told them lately. This is why I was switching to Ford and wanted the MachE. The Ariya "looks" interesting but I am a man of my word and its probably 3rd on my list of EV's I would consider. Yes I'd put it after the ID.4 and maybe tied with the Y.

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