Mach-E Financing and RCL Leasing Program Announced

[JTK44]

Yes there was a yoitube video confirming this today. Apparently the real lease residual is supposed to be 54%. That was indicated today. She mentioned the numbers above and then had to create a new video the one above to apologize to indicate that the posted numbers were for options and not the normal lease

Thanks!

Using a residual of 54% and interest at .01% (the lowest the lease calculator would permit) the monthly lease payment is $713 and with tax $775.

Of course there will be interest and the lease payments will be substantially more.

This is a non starter for anyone who is thinking of leasing.

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[DBC]

If my math is incorrect please advise.

Hope this clarifies once and for all.

The arithmetic isn't the issue. The issue is the less than compelling analysis which accompanies it.

At this point you've backed down from claiming that leasing the Model Y is a great deal to something like: "Leasing a Model Y with hands free driving costs more than leasing a MME with hands free driving, but the difference between leasing a Model Y without hands free driving and leasing a MME with hands free driving is inconsequential, and you can make the Model Y lease more appealing by considering taxes."

This isn't exactly compelling, and even this only holds true if you make other assumptions such as the number of miles you drive. Even more importantly, you can't even value the buyout option on the Model Y because there isn't one. Personally I wouldn't even consider a lease without a buy out provision, for all kinds of reasons, and I wouldn't advise anyone else to do that either.

 

[JTK44]

So theres hope residual numbers etc are going to be like a normal lease including actually benefiting from the federal tax incentive?

That would be wonderful - but I wouldn't count on it.

The Option plan with the $7,500 credit, 10K miles per year, 3 years has a balloon of 44%.

On a lease the residuals I have heard being bandy about are in the mid 50%.

If the lease with a residual in the mid 50 also had a tax credit of $7,500 it would be substantially cheaper than the option plan and no one would ever bother with the option plan.

From Ford's point of view, the option plan, being a sale is more desirable than a lease because in a lease Ford takes on the risk of depreciation while in the Option plan the buyer takes on the risk of depreciation.

With that in mind, I would expect the option plan to be cheaper than a lease.

So I think it will either be:

• Option plan with the tax credit of $7,500 at X dollars per month; or
• Lease without the tax credit priced at X plus dollars per month.

Just my $.02

 

[hybrid2bev]

in a lease Ford takes on the risk of depreciation while in the Option plan the buyer takes on the risk of depreciation.

Options offers the ability to return the vehicle like a lease does. So there’s no depreciation risk for the buyer on Options either.

 

[kdryden99]

So theres hope residual numbers etc are going to be like a normal lease including actually benefiting from the federal tax incentive?

At this point though I'd lake the lower lease payments without the incentive over the Options with the incentive. If I want to buy it back I'll finance the buyback at that time through Ford or the bank whichever is cheaper. The option for lower payments and the OUT is more important.

 

[JTK44]

The arithmetic isn't the issue. The issue is the less than compelling analysis which accompanies it.

At this point you've backed down from claiming that leasing the Model Y is a great deal to something like: "Leasing a Model Y with hands free driving costs more than leasing a MME with hands free driving, but the difference between leasing a Model Y without hands free driving and leasing a MME with hands free driving is inconsequential, and you can make the Model Y lease more appealing by considering taxes."

This isn't exactly compelling, and even this only holds true if you make other assumptions such as the number of miles you drive. Even more importantly, you can't even value the buyout option on the Model Y because there isn't one. Personally I wouldn't even consider a lease without a buy out provision, for all kinds of reasons, and I wouldn't advise anyone else to do that either.

You originally posted that my numbers were wrong, although I gave links to support each of them and further when you went to the links you could not understand them. I asked you to post the links for your numbers and you refused.

As an accommodation to you I posted the screens showing the Ford Option Plan and Lease rates. They are clear, concise and unequivocal.

You find no fault with them.

In every instance the Model Y is less expensive than the Premium LR AWD MME.

But instead of accepting this fact, you persist, for what reason no one knows.

Perhaps you are a shill for Ford?

There is an old saying;

"Those that fail to learn from history are doomed to repeat it"
​

I am sorry to say, that similarly, those who refuse to admit their mistakes continue to make them.

 

[JTK44]

Options offers the ability to return the vehicle like a lease does. So there’s no depreciation risk for the buyer on Options either.

Except for one thing:

In a lease you pay depreciation down to 55%. On $55,800 that is $25,110

In the Option plan you pay depreciation down to 44%. On $55,800 that is $30,132

So with the Option plan you have taken on an additional $5,000 of depreciation risk vs. a lease.

Protecting against depreciation risk is a key element of leasing - especially when you are worried that a BEV will not hold its value.

Hope that clarifies

 

[hybrid2bev]

Except for one thing:

In a lease you pay depreciation down to 55%. On $55,800 that is $25,110

In the Option plan you pay depreciation down to 44%. On $55,800 that is $30,132

So with the Option plan you have taken on an additional $5,000 of depreciation risk vs. a lease.

Protecting against depreciation risk is a key element of leasing - especially when you are worried that a BEV will not hold its value.

Hope that clarifies

My point is that at the end of your Options term you can turn in the vehicle and not have any negative equity to worry about, similar to leasing.

 

[JTK44]

At this point though I'd lake the lower lease payments without the incentive over the Options with the incentive. If I want to buy it back I'll finance the buyback at that time through Ford or the bank whichever is cheaper. The option for lower payments and the OUT is more important.

Of course.

The monthly payments under a lease should always be less than the monthly payments when you buy a car.

If the monthly payments were less buying than leasing no one would ever lease.

But with the MME, unless Ford passes on the $7,500 credit as a cap cost reduction, the lease payments will be higher than the payments under the Option Plan.

Did anyone say: "Alice in Wonderland?"

 

[JTK44]

My point is that at the end of your Options term you can turn in the vehicle and not have any negative equity to worry about, similar to leasing.

But you are out of pocket $5,000 more!

 

[kdryden99]

My point is that at the end of your Options term you can turn in the vehicle and not have any negative equity to worry about, similar to leasing.

Actually the biggest advantage is that you can transfer some of your down payment to another vehicle. On the other side if you kept that down payment you could have invested it

 

[JTK44]

Actually the biggest advantage is that you can transfer some of your down payment to another vehicle. On the other side if you kept that down payment you could have invested it

Let me understand:

1. I can pay Ford more now and sometime in the future hope that Ford will give me back some of that money towards another car; or
2. I can keep that money, invest it and hopefully it will increase in value over the next three years.

If you choose "1" what you have effectively done is give Ford an interest free loan. But worse yet in three years you have no idea how much Ford will pay you back.

I prefer "2"

 

[kdryden99]

Let me understand:

1. I can pay Ford more now and sometime in the future hope that Ford will give me back some of that money towards another car; or
2. I can keep that money, invest it and hopefully it will increase in value over the next three years.

If you choose "1" what you have effectively done is give Ford an interest free loan. But worse yet in three years you have no idea how much Ford will pay you back.

I prefer "2"

Yes you understand correctly

 

[kdryden99]

Let me understand:

1. I can pay Ford more now and sometime in the future hope that Ford will give me back some of that money towards another car; or
2. I can keep that money, invest it and hopefully it will increase in value over the next three years.

If you choose "1" what you have effectively done is give Ford an interest free loan. But worse yet in three years you have no idea how much Ford will pay you back.

I prefer "2"

Actually they probably invested your money while your paying them for it lol

 

[DBC]

You find no fault with them.

In every instance the Model Y is less expensive than the Premium LR AWD MME.

But instead of accepting this fact, you persist, for what reason no one knows.

At this point you've devolved into lying. My point is that the ONLY instance the Model Y is less expensive is when you compare a lower trim level Model Y with a higher trim level MME. Compare comparable trim levels and the MME is always less expensive. In fact even when you compare a lower trim level Model Y with a higher trim level MME the only way you can get the Model Y to be cheaper is to include sales tax calculations that involve somewhat dubious assumptions.

You say that this means I "find no fault with them". This is misleading. I find fault with the comparisons, and the comparisons are at the core of what matters and what doesn't.

Given how wed you are to your pre-existing narrative, I don't expect you to accept any of this even though it's obvious. So you persist, for what seems to be an obvious reason. LOL

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