Mach-E Financing and RCL Leasing Program Announced

[methorian]

I do not think that will be exclusive to the FE.

It will be available on all models - it must be, because the FE is a "limited" quantity

I believe they're referring to the activation fee for FSD ($600, $500 for those of us purchasing the car early). Basically, giving FSD software activation to all FE purchasers for free. Would be nice, but doubtful that'd happen.

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[AndyS_OSU]

Bolt:

I thought GM had used up their credits. If that is so, the 60% residual on the Bolt would be without the the Federal Tax credit. In addition there are incentives on the Bolt.


BMW i3:

i3's are on the dealer's lots begging for buyers. In addition to residuals of 60% there are substantial discounts that exceed the Federal Tax credit!

Audi and Jaguar:

Leases on eTron and iPace have residuals in the 50% range, contain a cap cost reduction of $7,500 and are heavily discounted.

If you lease I sincerely hope you do not believe that the Fed tax credit of $7,500 is already "baked into" the lease because of the 55% residual. I for one am not interested in a lease with a residual of 55% unless the Federal Tax credit is put in as a cap cost reduction.

The MME must have a residual of 55% plus the $7,500 as a cap cost reduction to be competitive with the Model Y.

I know this and Ford knows this as well.

Agreed. Even if Ford only passed on $5500 of the credit to the lessee and a money factor at .001 seems more inline with the rest of the market. Full disclosure I’m working from memory here so my data isn’t complete. I’m sure there are contrary examples out there.

 

[JTK44]

I believe they're referring to the activation fee for FSD ($600, $500 for those of us purchasing the car early). Basically, giving FSD software activation to all FE purchasers for free. Would be nice, but doubtful that'd happen.

Yes that would be nice, but like you I doubt that would happen.

As we now know that the First Edition will not be first production, main reason I ordered, and that even the select models have production dates ahead of the First Edition, if you had it over to do again, would you ordered the FE?

I really expected to have my FE for several months before other MME arrived - that would have been "cool" to have the exclusivity for a few months.

Not having that exclusivity, if I had it to over again, I would have just ordered a premium LR AWD and saved $3600.

What about you?

 

[hybrid2bev]

You are correct about the residuals on the 2020 models: Adjusting the 46% to 10,000 miles brings you up to 47 to 50% 2% per 2,500 miles.

However, the mistake you are making is comparing residuals on last year's model the 2020 with residuals on the current year's model, the 2021 which will be higher. The MME is not a 2020 but a 2021.

When I leased my 2018 Ford Edge Sport, the 2019 were already in the dealership. There was virtually no difference between the 2018 and 2019.

In order to move the 2018, and because the residuals on the 2018 were lower than on the 2019, the dealer gave me incentives, rebates, etc. that totaled over $8,000 vs. $2,500 on the 2019. That extra $5,500 in incentives was far greater than the savings between a residual of 51% (2018) and 55% on the 2019. The lease on the 2018 Edge Sport was more than $80 cheaper than the same lease on the 2019 Edge Sport.

So in comparing residuals it is important to compare new model vs. new model not last year's model vs. this year's model.

Yes, that's a good and valid point about model years. Unfortunately there aren't any 2021 model year Mustangs/Edge to compare to yet. So I looked at other models that are published for '21 and compared to the '20s. There's about a 2-4 point increase in residuals from 2020 to 2021 when looking at models that are in both years.

So I'll adjust, let's go 4 points higher to be on the high side and 15k so it's all at the same mileage.

The Mach-E is at 55% (Premium AWD Ext Range).

The 2020 Q4 36 month residuals @ 15k miles:
2020 Ford Edge right now range from 43% to 46% (depending on trim),
Estimates for 2021 would be 47% to 50% (if adding 4%)

2020 Mustangs are 42% to 47%
Estimates for 2021 would now be 46% to 51% (ignoring that its a model refresh)

 

[JTK44]

Agreed. Even if Ford only passed on $5500 of the credit to the lessee and a money factor at .001 seems more inline with the rest of the market. Full disclosure I’m working from memory here so my data isn’t complete. I’m sure there are contrary examples out there.

Once you commit to pass on the Federal tax credit that is what you do:

It is like being pregnant: either you are or you are not.

So it must be $7,500.

BTW, a MF of .001 equates to 2.4% which is neither high nor low, so no big deal.

 

[JTK44]

Yes, that's a good and valid point about model years. Unfortunately there aren't any 2021 model year Mustangs/Edge to compare to yet. So I looked at other models that are published for '21 and compared to the '20s. There's about a 2-4 point increase in residuals from 2020 to 2021 when looking at models that are in both years.

So I'll adjust, let's go 4 points higher to be on the high side and 15k so it's all at the same mileage.

The Mach-E is at 55% (Premium AWD Ext Range).

The 2020 Q4 36 month residuals @ 15k miles:
2020 Ford Edge right now range from 43% to 46% (depending on trim),
Estimates for 2021 would be 47% to 50% (if adding 4%)

2020 Mustangs are 42% to 47%
Estimates for 2021 would now be 46% to 51% (ignoring that its a model refresh)

Comparing 2020 to 2021 there must be more than a 2% to 4% difference in residuals. The incentives on last year's model vs. a new model will more than make up that difference. The actual difference with be at least 5% to 6%.

Having leased for over 35 years I can guarantee you that the residuals on the 2021 Ford Edge will be for 10K 36 months between 55% and 57% depending on the model. Of course there is no Federal Tax rebate "baked into" the residual.

The only reason Ford will have a lower residual on the MME, is their belief that the MME being an EV will not hold its value.

If Ford does not confidence that the MME will hold its value why should I?

 

[methorian]

Yes that would be nice, but like you I doubt that would happen.

As we now know that the First Edition will not be first production, main reason I ordered, and that even the select models have production dates ahead of the First Edition, if you had it over to do again, would you ordered the FE?

I really expected to have my FE for several months before other MME arrived - that would have been "cool" to have the exclusivity for a few months.

Not having that exclusivity, if I had it to over again, I would have just ordered a premium LR AWD and saved $3600.

What about you?

Not sure, mostly because I love Grabber Blue. I've gotten over my disappointment that FE's aren't strictly first built/delivered (for the most part), but I still can't completely rationalize the cut to pricing for premium base, while increasing the FE package. None of it is enough to make me back out, I'm just far too excited about this car.

And to keep the post on topic - I really wish Options could work for me, but looking at my current mileage I drive about 22,000-23,000 miles per year, mostly just on my commute. I think I'd end up driving the Mach-E even more, so not realistic for a leasing option.

 

[hybrid2bev]

Comparing 2020 to 2021 there must be more than a 2% to 4% difference in residuals. The incentives on last year's model vs. a new model will more than make up that difference. The actual difference with be at least 5% to 6%.

I'm looking right at the documents. I'll give you a snip just as an example, but the models that carry over from 20 to 21 are all similar: 2% to 4% bump.

2020:

2021:

 

[DBC]

The only reason Ford will have a lower residual on the MME, is their belief that the MME being an EV will not hold its value.

If Ford does not confidence that the MME will hold its value why should I?

The is disappointing coming from someone who claims to be a leasing guru. Put as simply as possible, the reason for the low residual is the tax credit. Basically the tax credit reduces the MSRP. Whether Ford or anyone wants to admit that, it's the reality.

If you subtract the credit from the MSRP then the residuals are reasonable. If you want to delude yourself into thinking the tax credit doesn't matter and won't effect the residual then go ahead and insist on being wrong. LOL

It's not that Ford lacks confidence in the MME holding its value. It knows that when the tax credit goes away it will have to either reduce the MSRP or toss incentives at it.

 

[JTK44]

Not sure, mostly because I love Grabber Blue. I've gotten over my disappointment that FE's aren't strictly first built/delivered (for the most part), but I still can't completely rationalize the cut to pricing for premium base, while increasing the FE package. None of it is enough to make me back out, I'm just far too excited about this car.

And to keep the post on topic - I really wish Options could work for me, but looking at my current mileage I drive about 22,000-23,000 miles per year, mostly just on my commute. I think I'd end up driving the Mach-E even more, so not realistic for a leasing option.

Got it:

Grabber Blue.

Driving over 20,000 miles per year, leasing does not work.

 

[bullshark]

Report: Ford Preps For Big Depreciation For Mustang Mach-E: 39%

Why Mach E residual value is so low?

 

[JTK44]

Report: Ford Preps For Big Depreciation For Mustang Mach-E: 39%

Why Mach E residual value is so low?

This is complete circular reasoning:

A poster on another forum, ReturnoftheMach, who is an excellent forum member, speculates that the residual will be 39% is then picked up by a blogger who reports it.

Until Ford announces the residuals for leases all we are doing is speculating.

 

[Gimme_my_MME]

Until Ford announces the residuals for leases all we are doing is speculating.

But we're soooooo good at that

 

[jhalkias]

Not sure, mostly because I love Grabber Blue. I've gotten over my disappointment that FE's aren't strictly first built/delivered (for the most part), but I still can't completely rationalize the cut to pricing for premium base, while increasing the FE package. None of it is enough to make me back out, I'm just far too excited about this car.

And to keep the post on topic - I really wish Options could work for me, but looking at my current mileage I drive about 22,000-23,000 miles per year, mostly just on my commute. I think I'd end up driving the Mach-E even more, so not realistic for a leasing option.

I drive almost 32,000 a year, and I am planning on doing options. If you are planning on buying it out at the end anyway, mileage doesn't matter. I will take a lower payment now and then pay off the options balloon at the end of 4 years. If the current incentives and rates I am seeing stay in place, there is very little difference in final cost (unless you have to finance that balloon payment).

 

[methorian]

I drive almost 32,000 a year, and I am planning on doing options. If you are planning on buying it out at the end anyway, mileage doesn't matter. I will take a lower payment now and then pay off the options balloon at the end of 4 years. If the current incentives and rates I am seeing stay in place, there is very little difference in final cost (unless you have to finance that balloon payment).

I'm still going to look at every option when I go to purchase. Will all depend on rates/incentives and whatnot in my area when mine arrives. The biggest reason I would want to do Options/lease is to be able to easily walk away in 3 years. I don't think that's economical with all the extra mileage though, but we'll see.

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