JTK44

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It's actually not only a bad deal for those who want to lease its bad for everybody.
Lets say you financed the car, after 4 years of paying the car, you run into some bad luck, you lost your job, you had an accident, divorce whatever. Everybody else's premium ev retained 50% of their value while yours is at 40% because those who took the options plan are selling theirs at 40% or 35%. Ford literally devalued your car. Life is full of changes just look at this year. So if you planned to keep your car but are forced to sell, you wont get much of it back. This should not be the case for such a limited production car and not a premium EV.
Sounds like you too are going to wait a year and let the price of the MME shake out and let the market not Ford decide.

The irony is that I have had two Ford Edge Spots, MSRP $47,000, with leases of $457 and $407 a month, 36 months, 10K miles per year all in. The leases were so exceptional, my good friend has leased two, also with exceptional leases.

Based on my two prior experiences with Ford, I expected to have similar aggressive leases with the MME.

So you can imagine my shock in seeing the monthly payments for either the option plan or a lease!

If back in November 2019 I was told the leases were in the $800 range with tax included, I would have never placed an order.
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kdryden99

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Sounds like you too are going to wait a year and let the price of the MME shake out and let the market not Ford decide.

The irony is that I have had two Ford Edge Spots, MSRP $47,000, with leases of $457 and $407 a month, 36 months, 10K miles per year all in. The leases were so exceptional, my good friend has leased two, also with exceptional leases.

Based on my two prior experiences with Ford, I expected to have similar aggressive leases with the MME.

So you can imagine my shock in seeing the monthly payments for either the option plan or a lease!

If back in November 2019 I was told the leases were in the $800 range with tax included, I would have never placed an order.
I have the advantage of a march/april delivery so terms from Ford might change by then. Those who were clamoring to get theirs this year, i'd think twice. There is nothing stopping me from taking my deposit back and reordering in june to get it a year later. Who knows if there's a stoppage and my delivery gets delayed to june july then i might be in a better position than getting it in march. But yes i might wait. They say that when you buy a new car the value drops by 50% when you drive it off the lot. Well in this case its closer to 60%
 
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It's actually not only a bad deal for those who want to lease its bad for everybody.
Lets say you financed the car, after 4 years of paying the car, you run into some bad luck, you lost your job, you had an accident, divorce whatever. Everybody else's premium ev retained 50% of their value while yours is at 40% because those who took the options plan are selling theirs at 40% or 35%. Ford literally devalued your car. Life is full of changes just look at this year. So if you planned to keep your car but are forced to sell, you wont get much of it back. This should not be the case for such a limited production car and not a premium EV.
Your residual value on your personal account does not set the used vehicle market value. The market / auction prices are determined by what someone is willing to pay and does not care how much you owe on your contract. If the market says the car is worth 50% and if you only owe 40% you would still sell it for 50% and recoup the 10%. Cars sell for what the market will bear not what you owe.
 

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Your residual value on your personal account does not set the used vehicle market value. The market / auction prices are determined by what someone is willing to pay and does not care how much you owe on your contract. If the market says the car is worth 50% and if you only owe 40% you would still sell it for 50% and recoup the 10%. Cars sell for what the market will bear not what you owe.
I agree but if their are 50 MME'S for sale privately you will have a decrease in value cause those selling at 38 37% because they took the lease is still better than the 45% you were expecting to get.
 

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I agree but if their are 50 MME'S for sale privately you will have a decrease in value cause those selling at 38 37% because they took the lease is still better than the 45% you were expecting to get.
Dont forget at the end of options if you give the car back and the car is worth 50% it also means a bigger profit for Ford. You lose again.
 


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hybrid2bev

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Dont forget at the end of options if you give the car back and the car is worth 50% it also means a bigger profit for Ford. You lose again.
Not really. You have the option to trade it in rather than just return it. If you owe less than it’s value you can still profit because you own the vehicle.
 
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I agree but if their are 50 MME'S for sale privately you will have a decrease in value cause those selling at 38 37% because they took the lease is still better than the 45% you were expecting to get.
That’s my point, the market determines the value. In that instance it’s better to have set a lower residual on your contract so that when the balloon is due you owe less.
 

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Not really. You have the option to trade it in rather than just return it. If you owe less than it’s value you can still profit because you own the vehicle.
Yes you are right. Someone like me who us self employed it's a decision id have to make at that time. But many who use the car as a "Company" car wont buy it back. So you will have cars on lots with 65% of them paid. Guess ehat happens to the private sellers.
 

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That’s my point, the market determines the value. In that instance it’s better to have set a lower residual on your contract so that when the balloon is due you owe less.
So if nobody finances, nobody leases and after 4 years everyone has 35% left to pay what happens to the market? The car will be woth 35%. If leasing sucks and financing sucks and options is the best you automatically predetermined the market value
 
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So if nobody finances, nobody leases and after 4 years everyone has 35% left to pay what happens to the market? The car will be woth 35%. If leasing sucks and financing sucks and options is the best you automatically predetermined the market value
Sorry I’m missing your point. The value of a vehicle is not determined by what you owe. When vehicles go to auction (which helps determine the market value) the auction houses don’t know or care about how much you owe or paid for the vehicle initially. The vehicle sells for what the market will bear regardless of anyone’s personal financing situation.
 

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Maybe i
Sorry I’m missing your point. The value of a vehicle is not determined by what you owe. When vehicles go to auction (which helps determine the market value) the auction houses don’t know or care about how much you owe or paid for the vehicle initially. The vehicle sells for what the market will bear regardless of anyone’s personal financing situation.
Maybe in U.S. its like that. Here there is 1 auction house Adessa. Used car dealers are not stupid. The market here is set mostly by private sellers and dealers. Not used car dealers.
 

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Maybe i

Maybe in U.S. its like that. Here there is 1 auction house Adessa. Used car dealers are not stupid. The market here is set mostly by private sellers and dealers. Not used car dealers.
I've had co-workers make me private offers on my used cars. I also have many options on where/how to sell them both privately or through dealers. You do not have a free market for car trades in Canada?
 

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I've had co-workers make me private offers on my used cars. I also have many options on where/how to sell them both privately or through dealers. You do not have a free market for car trades in Canada?
Of course we do but how do you want to sell urs at 45% when the Ford dealer has one at 38%
 

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I
The unknown part of the leasing equation is the incentive amount Ford will put into the lease. In Calif they’re putting $2500 into financing and Options. I’m assuming it will be the same for RCL. Unfortunately we have to pay sales tax on that incentive. It seems there would be more tax efficient solutions available. Whether that makes a big enough difference to make RCL competitive is TBD.

With the low volumes of Mach Es being produce, Ford really doesn‘t need to discount them much. Most buyers won’t even be aware of the “heads Ford wins, tails buyers lose” nature of the options provided by Ford as it relates to the use of the $7500 Federal Tax Credit.
I doubt it will. 2500/48=52$month. not much there.
 

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Of course we do but how do you want to sell urs at 45% when the Ford dealer has one at 38%
I would sell mine at a price the market is willing to pay. If I choose to sell to a dealer, that price will be roughly $1,000-$1,750 or so below dealer sales because of buyer's risk, middleman fees/profit, warranty differences, and similar factors. If I sell privately, it will generally be $1,000-$2,500 above selling to a dealer. Just my observations on my non-premium cars like Accord, Fusion, Fiesta.

That's for my case, as someone who will own the vehicle outright at time of sale. No other party involved.

If a person had a vehicle to "sell" or trade while not the outright owner, then I'd guess this individual would generally end up accepting a lower resale value than I would, due to our different circumstances.

The buyer might be correct in assuming that this seller is carrying some financial baggage/burden and as a result, the seller is probably more deeply emotionally swayed in the transaction. Especially if the seller is upside down on the trade (financing is taking on more risk), or in a time crunch (like someone at the end of a lease).

Anyway, the above paragraph is where I can imagine a person with financing or who leased is going to get a lesser deal than a seller who owned their car... But that's about it. I still don't see the link between the number games, factors, market predictions, and whatever else are embedded into vehicle leasing, and the reality of the market that exists 2-4 years from now.

As a personal vehicle owner, I will always be more interested in overall cost of ownership than monthly payment amounts. But you stated you are leasing as a business expense. That can be a very different situation so your mileage may vary.
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