Mach-E Lease Residuals Released For Q1 Are Impressive!

[machefan]

Good job @macchiaz-o. Lot of confusion on this thread. The $7500 tax credit reduces your tax liability by $7500, but not below $0. Let me try an example. If your Federal tax liability for this year, 2020, for example works out to $9000 and you had withholding of $10,000 (most people withhold way too much and let the Feds use the money interest free for the year), you would get a refund of $1000 a few weeks after you file your 2020 return. Now, let's say you take delivery of an EV early in 2021 and your income and deductions stay pretty much the same for 2021 as they are for 2020. Then, when you do your return for 2021, your tax liability will work out to $1500 instead of $9000 because of the tax credit. If you still insist on wanting to get a $1000 refund early 2022, then work with your employer to have your withholding be a total of $2500 by the end of 2021. Your withholding reduction for 10 months (say you take delivery of your MME in Feb) would work out to $750 PER MONTH more in your take-home pay. REMEMBER to change your withholding back to normal in January 2022.

If anyone has any questions about how this works, feel free to PM me.

Good point here as it looks like 99% of us with early orders will be pushed till 2021 since nothing has shipped yet. Just about two weeks till 2022 so I am confident as one who is in the build stage right now will not see it till 2022. As you said, if one really wants to take the deduction early they can just adjust their withholdings to work out $7500. Personally I am fine with waiting till 2022 to get it back, I am not in that tight of a spot at the moment. I often think people just psychologically want it sooner and not wait for one reason or another. Do I dare say If the $7500 is going to break your bank, one maybe should look for a less expensive car? I am guessing if one is retired for example with little to no income they might not get the rebate since they do not have enough generated tax liability. So if you owe nothing because you made nothing you can't get the $7500 back. I can understand if your taxes are greater this year and will be less next that might also change the outcome but at this point 2020 is becoming less likely as each day passes.

So really folks need to plan for 2022 or change withholdings in 2021.

Great topic and always a confusing area for all.

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[AndyS_OSU]

Just confirming with all the tax gurus out there:

If someone adjusts withholdings to the tune of $7500 throughout 2021 and purchases a Mach-E within the same calendar year, the Federal EV Tax Credit would cancel out that underpayment when 2021 taxes are filed in 2022, correct?

 

[DaveRuns]

Just confirming with all the tax gurus out there:

If someone adjusts withholdings to the tune of $7500 throughout 2021 and purchases a Mach-E within the same calendar year, the Federal EV Tax Credit would cancel out that underpayment when 2021 taxes are filed in 2022, correct?

One of the most confusing topics!

 

[DBC]

If someone adjusts withholdings to the tune of $7500 throughout 2021 and purchases a Mach-E within the same calendar year, the Federal EV Tax Credit would cancel out that underpayment when 2021 taxes are filed in 2022, correct?

The short answer is "yes".

The longer answer is there isn't any "canceling" and the years don't need to match. A qualified electric vehicle credit simply reduces the amount of the tax due for that year. If the tax owed was $100K and you had paid $92K -- through withholding or estimated tax or a carryover refund or carryover credit or whatever -- then you tax bill would be $500 ($100,000 - $92,000 - $7500). If you had paid $100K then you would get $7500 as a refund. If you had paid $110K then you would be entitled to a $17,500 refund.

Note you can't roll the credit forward but if you are due a refund because of the credit you can apply the refund to the following year's tax bill. (Some credits you can roll forward which can help ensure that you can use the credit even if you don't have a large enough tax bill in the year you earn the credit The electric vehicle credit isn't one of these).

 

[ChasingCoral]

Watch this space for new incentives by tomorrow as the current ones expire today.

 

[macchiaz-o]

Watch this space for new incentives by tomorrow as the current ones expire today.

As one would expect, change is afoot.

Looks like prior incentives are now cleared away. Pricing is temporarily unavailable on fordpartner.com (x-plan) and the calculator on the Mach-E builder is showing no incentive and a default (editable) APR value of 5%.

The early risers (or all nighters?) will keep us abreast of further changes.

 

[methorian]

As one would expect, change is afoot.

Looks like prior incentives are now cleared away. Pricing is temporarily unavailable on fordpartner.com (x-plan) and the calculator on the Mach-E builder is showing no incentive and a default (editable) APR value of 5%.

The early risers (or all nighters?) will keep us abreast of further changes.

Early riser here - Looks like the existing incentives were extended through March 31st, 2021. (Options Bonus Cash which varies by region, and an APR promo on plain financing)

 

[machefan]

Early riser here - Looks like the existing incentives were extended through March 31st, 2021. (Options Bonus Cash which varies by region, and an APR promo on plain financing)

Coffee Coffee,

For those who forgot how to lookup the numbers here you go.

https://www.fordpartner.com/partnerweb/login.do

Use code "MC405" (X-plan for Mustang club) - sign up if you haven't to qualify for the x-plan unless your employer is already part of the program. I am so happy it's the same discounts for NJ, we get screwed enough on other things. My only concern is that it does not show for the First Edition but I think the trim for that still is the Premium? Anyone know?

Happy Tuesday!

 

[AndyS_OSU]

Definitely no change to traditional financing and Ford options. Waiting to hear from @hybrid2bev to see if they improved the lease terms and incentives since they no longer list that on the site.

 

[hybrid2bev]

Definitely no change to traditional financing and Ford options. Waiting to hear from @hybrid2bev to see if they improved the lease terms and incentives since they no longer list that on the site.

I see the same: Options rates/residuals/bonus cash and also normal APR financing show no changes.

RCL rates are the same. RCL residuals for 36 months are the same, 39 month RCL moved up 1 point for all trims.

 

[AndyS_OSU]

I’m curious to see what the sell through rate will be for the MachE when more hit lots. Out of the 3 that made it to Dallas last week, one was delivered to the person who ordered it, one was released by the customer and sold to another (the Grabber Blue FE), and the other was released by the customer and is currently sitting on a showroom with $5k ADM.

 

[CarboFE]

@hybrid2bev When I use my financial calculator I can replicate the straight financing payment as indicated on the Ford website. However, the Ford Options payment from the website is always ~$15 higher than my own calculations. What am I missing? Thanks.

 

[hybrid2bev]

@hybrid2bev When I use my financial calculator I can replicate the straight financing payment as indicated on the Ford website. However, the Ford Options payment from the website is always ~$15 higher than my own calculations. What am I missing? Thanks.

Without seeing your numbers compared to the Ford payment estimator it's hard to say.

Things I would check first:
Ensure you're using 35 or 47 monthly payments depending on the term
Validate the balloon amount is correct

 

[First Edition]

An article on the Mach E’s expected depreciation.

Mach E depreciation

For comparison purposes the F-150 is worth 61% after three years.

 

[CarboFE]

Without seeing your numbers compared to the Ford payment estimator it's hard to say.

Things I would check first:
Ensure you're using 35 or 47 monthly payments depending on the term
Validate the balloon amount is correct

Thanks. The main difference appears to be the number of months. I was using 36. It's still off by a dollar or so, which bugs me, but much closer.

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