UW2

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There is no significant difference between the price of the Model Y and the price of the MME, and, as a consequence, there is no significant difference in the monthly payments on a Model Y and a MME.

Just a fact. If in doubt look at the screenshots from the Tesla website and the Ford website which I've posted. Could not be more clear.

Anyone saying anything else is FOS.

The confusion arises because some people are challenged when accounting for the tax credit. As a CEO and Founder this should not pose an issue for you.
Thanks for summing this up: makes me feel good about my FE purchase
Sponsored

 

JTK44

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Thanks for summing this up: makes me feel good about my FE purchase
Just for your information:

This is incorrect information

The purchase price of the Model Y and the Premium LR AWD MME are similar.

But the Ford Option Plan and/or leases (so far there is no information as to either interest rates or residuals but the "rumored" residual is between 54% and 57% and interest of 5.4%) over 36 months will be at a minimum $5,000 more than a lease on the Model Y.

You owe it yourself to check out my prior postings where the monthly payments under the Ford Option plan are compared to the the Model Y monthly payment of $633 a month with no money down.
 
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JoseLuisDeLaCruz

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I just contacted a Ford Dealership and spoke with one of the managers and she said they have no numbers yet for the Ford Mustang Mach-E. She even said she doubts they will get any in for months the only ones they are getting in are custom orders and she doesn’t think they are getting any to take test drives for a while but told me she is going to ask the Dealership Head Manager for specificities and get back to me with more concrete answers.
 

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I just contacted a Ford Dealership and spoke with one of the managers and she said they have no numbers yet for the Ford Mustang Mach-E. She even said she doubts they will get any in for months the only ones they are getting in are custom orders and she doesn’t think they are getting any to take test drives for a while but told me she is going to ask the Dealership Head Manager for specificities and get back to me with more concrete answers.
Thank you for checking. Im sure they will get that info at the same time as us.
 

JTK44

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Thanks for summing this up: makes me feel good about my FE purchase

Just found my post:

It is #330.

After you look at, you can decide if DDC post is accurate.
 
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DBC

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You truly do not know what you are writing about:

There are two Model Y:

Long Range: $49,990
Performance $59,990

All our discussions have been very, very clear to everyone but you: we are dealing with the long range at MSRP $49,990.
That is your comparison. But why compare one vehicle that includes the hands free option and one which doesn't have a hands free option but has a less capable option which costs $10K?

The fact that Tesla offers fewer battery options with the Model Y doesn't mean that anyone should prefer that to options you can get on the MME. Do that and the Model Y is once again more expensive. Somehow you want to make the lack of consumer choice into a feature. LOL

Finally, Tesla doesn't offer a open end lease. Ford does. Since an open end lease is ALWAYS preferable, the comparison is once again skewed and you're reduced to comparing a closed end lease to an open end lease.

You persist in insisting that a more expensive vehicle with fewer options, less capabilities, and a worse type of lease is better. Why is this? I think you've mentioned you're not interested in the less expensive vehicle with more options and more capabilities which is offered in a better lease. Could that be it?
 

macchiaz-o

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Finally, Tesla doesn't offer a open end lease. Ford does. Since an open end lease is ALWAYS preferable, the comparison is once again skewed and you're reduced to comparing a closed end lease to an open end lease.
Are you sure?

I thought Ford Credit only runs closed end leases.

Tesla doesn't offer any end (no open or closed balloon option) to their leases. You must return the vehicle and pay for over mileage and repairs.

I am super unlikely to ever choose leasing... And I would *never ever* go for an open ended lease. So I may be misunderstanding.
 

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Are you sure?

I thought Ford Credit only runs closed end leases.

Tesla doesn't offer any end (no open or closed balloon option) to their leases. You must return the vehicle and pay for over mileage and repairs.

I am super unlikely to ever choose leasing... And I would *never ever* go for an open ended lease. So I may be misunderstanding.
No you are not misunderstanding.

Responding to DBC is a total waste of time.

It is just better to ignore him.
 

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I’m just trying to figure out how Ford justifies such a drastically different lease program than the rest of the market.

6 years ago I leased a BMW i3, after tax with a $5000 trade in allowance for less than $400 a month (3yr/10k miles). I think the MSRP was around $46k
Ford Options is a better version of a lease. That becomes clear if you analyze it. Here is what happens in NJ with Options. The lower monthly is because of the lower interest rate and the rebate. You've used zero down, which is right for the lease but for Options you want to use $7500 because that is your cash back. Here is what happens when you do that:
Ford Mustang Mach-E Mach-E Financing and RCL Leasing Program Announced Ford Options NJ Stanard

Now you mentioned you leased a BMW by putting $5K down. When you add $5K to the down this is what you get:
Ford Mustang Mach-E Mach-E Financing and RCL Leasing Program Announced Ford Options NJ Standard with Down

Car companies, dealers, and customers like leasing because it's as much psychology as it is financing. You can move the numbers around and get very different reactions for what is basically the same thing. I don't understand the Electric Vehicle rebates in NJ but it looks like you qualify for something up to $5K? If so then the actual monthly would be under $300 plus tax.
 

JoseLuisDeLaCruz

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Ford Options is a better version of a lease. That becomes clear if you analyze it. Here is what happens in NJ with Options. The lower monthly is because of the lower interest rate and the rebate. You've used zero down, which is right for the lease but for Options you want to use $7500 because that is your cash back. Here is what happens when you do that:
Ford Mustang Mach-E Mach-E Financing and RCL Leasing Program Announced Ford Options NJ Standard with Down

Now you mentioned you leased a BMW by putting $5K down. When you add $5K to the down this is what you get:
Ford Mustang Mach-E Mach-E Financing and RCL Leasing Program Announced Ford Options NJ Standard with Down

Car companies, dealers, and customers like leasing because it's as much psychology as it is financing. You can move the numbers around and get very different reactions for what is basically the same thing. I don't understand the Electric Vehicle rebates in NJ but it looks like you qualify for something up to $5K? If so then the actual monthly would be under $300 plus tax.
The NJ Electric Vehicle rebate is a check you get sent after either financing or leasing an electric vehicle. So you would get a check after the fact by mail.
 

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Are you sure?

I thought Ford Credit only runs closed end leases.

Tesla doesn't offer any end (no open or closed balloon option) to their leases. You must return the vehicle and pay for over mileage and repairs.

I am super unlikely to ever choose leasing... And I would *never ever* go for an open ended lease. So I may be misunderstanding.
AFAIK all car companies only offer open end leases. It's sort of table stakes. There are commercial closed end leases. I believe Tesla is alone in offering the less attractive closed end lease for retail customers.

An open end lease is always superior to a closed end lease. And when I say always I mean always. With a closed end lease you turn in the vehicle at the end of the lease, pay the disposal fee if any, and you're done. With an open end lease you have that option, but you can also pay the residual and keep the car. So there is no downside, only upside, for an open end lease. (I've leased and bought and leased and walked -- depends on the vehicle and the situation). So you really want an open end lease and really don't want a closed end lease. Unless of course you're Cassandra and can see the future, but in that case you'd be the richest person in the world and wouldn't care one way or the other.

Options actually is a better version of a open end lease because it's better financial and you have even more options. With Options you're basically financing the vehicle at a lower rate and getting a price cut. Consequently it beats leasing because it's cheaper. It beats financing because it's cheaper. And it beats paying cash because you have the option of walking, buying, trading, or financing at the end of the lease period.

Even if you can pay cash Options is a good deal.
 

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AFAIK all car companies only offer open end leases.
I read this page:

https://www.investopedia.com/terms/c/closed-endlease.asp

And of course this one:

https://www.ford.com/finance/lease-end/return

Which seems like Ford is describing what Investopedia would call a closed-end lease. The "residual" value of the asset is decided at the start of the lease and it remains the same at the end, regardless of changing market conditions.

I checked the paperwork for the only vehicle I've ever leased, and it is very clearly marked "closed-end" right at the top of the agreement/disclosure.

Ford Mustang Mach-E Mach-E Financing and RCL Leasing Program Announced lease agreement


It has an interesting clause which allowed me to buy the vehicle at fair market value at the end of the lease... But that doesn't make it an open-ended lease since if I had decided to return the car instead of buying it, I would have not owed or received any monies other than the fixed amounts pre-agreed upon at the start.

Anyway, that was in the 1990s... Things could be different now.

It's not totally clear to me, but I'm thinking Ford Credit leases don't offer the FMV option.

https://www.ford.com/finance/lease-end/purchase

Even if you can pay cash Options is a good deal.
For me? Maybe. Luckily I have more options than just Options, so I will decide which works best for me when the time comes.
 
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AndyS_OSU

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Ford Options is a better version of a lease. That becomes clear if you analyze it. Here is what happens in NJ with Options. The lower monthly is because of the lower interest rate and the rebate. You've used zero down, which is right for the lease but for Options you want to use $7500 because that is your cash back. Here is what happens when you do that:
Ford Mustang Mach-E Mach-E Financing and RCL Leasing Program Announced lease agreement

Now you mentioned you leased a BMW by putting $5K down. When you add $5K to the down this is what you get:
Ford Mustang Mach-E Mach-E Financing and RCL Leasing Program Announced lease agreement

Car companies, dealers, and customers like leasing because it's as much psychology as it is financing. You can move the numbers around and get very different reactions for what is basically the same thing. I don't understand the Electric Vehicle rebates in NJ but it looks like you qualify for something up to $5K? If so then the actual monthly would be under $300 plus tax.
Quite a bit of difference here in TX. No incentives, no sales tax rebate. And the $7500 is only helpful if it’s delivered before January 1, 2021. Even assuming it Is delivered before the end of December here is what I get.

Ford Mustang Mach-E Mach-E Financing and RCL Leasing Program Announced 34640FB9-EF32-4A0B-8EAA-0FB531EA3F0A
 

JTK44

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Ford Options is a better version of a lease. That becomes clear if you analyze it. Here is what happens in NJ with Options. The lower monthly is because of the lower interest rate and the rebate. You've used zero down, which is right for the lease but for Options you want to use $7500 because that is your cash back. Here is what happens when you do that:
Ford Options NJ Stanard.jpg

Now you mentioned you leased a BMW by putting $5K down. When you add $5K to the down this is what you get:
Ford Options NJ Standard with Down.jpg

Car companies, dealers, and customers like leasing because it's as much psychology as it is financing. You can move the numbers around and get very different reactions for what is basically the same thing. I don't understand the Electric Vehicle rebates in NJ but it looks like you qualify for something up to $5K? If so then the actual monthly would be under $300 plus tax.

The model most comparable to the Model Y Long Range AWD, MSRP $49,990, is the Premium LR AWD, including destination charge is MSRP $55,800. This is before the Federal Tax Credit of $7,500. (You failed to mention what model you are using)

The monthly payment for the Model Y, with zero down payment is $633.

The monthly payment under the option plan for Premium LR AWD are:

  • $7,500 down payment plus $2,500 incentive: $675
  • $7,500 down payment but no incentive: $748
Keep in mind that if your state charges sales tax, in 44 out of 50 states the sales tax will be: My sales tax is $8.625% :

  • On the Model Y: 36 months X $633, $22,788 X 8.625%, $1,965, $55 per month, total monthly payment including tax: $688 per month.
  • On the Premium AWD LR: The Option plan is a sale and the tax is on the sale price: $55,800 X 8.625%, $4,813, $133 per month.
  • The total payments including tax on the Premium $10,000 down: $7,500 tax credit + $2,500 incentive, is $808 per month.
  • The total pay payments including tax with $7,500 down payment, Federal Credit but no incentive, is $881 per month:

Monthly lease payment Model Y, Long range from the Tesla.com website: $633

Ford Mustang Mach-E Mach-E Financing and RCL Leasing Program Announced Screenshot (15)




Monthly payment on Premium AWD LR, with Federal Tax credit, $7,500 plus $2,500 incentive, from Ford.com, $675:




Ford Mustang Mach-E Mach-E Financing and RCL Leasing Program Announced Screenshot (23)


Monthly payment on Premium AWD LR, with Federal Tax credit, $7,500 but without the $2,500 incentive, from Ford.com, $748:




Ford Mustang Mach-E Mach-E Financing and RCL Leasing Program Announced Screenshot (26)


I think the above is clear, but if there any questions please post.
 
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