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Just curious. Did your Model S lose 35% or 40% of its value this year? Hopefully you leased it.
According to the results of the study, the Model S loses 36.3% over a three year period. Not as good as the 10.2% for the Model 3 which almost defies logic....and economics.

tesla-model-3-depreciation.jpg





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machefan

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Yes, FE's are Premiums with the FE Package. Check with your dealer to verify the X-Plan price.
I did, they confirmed the X-plan price but said they needed to talk to their Ford rep on the incentives as they didn't show up for him.

My price will be $58,879.25 from $59,800 for the X-PLAN.

Anyone know the current Ford Finance rates?
 

AndyS_OSU

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I did, they confirmed the X-plan price but said they needed to talk to their Ford rep on the incentives as they didn't show up for him.

My price will be $58,879.25 from $59,800 for the X-PLAN.

Anyone know the current Ford Finance rates?
I believe for purchase it’s .9 up to 48, 1.9 for 60, and 3.9 for 72. That’s just off the top of my head.

options is 2.25 for 36 or 48.

Lease is something like 5.4
 

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No one is arguing how tax credits and leases work. I’ve negotiated these things a few times so I’m well aware.

I think a lot of people have been caught off guard with the seemingly 180 degree shift now that the market is more mature. It’s hard to stomach going from BMW and Chevy that set residuals at 60+, effective apr’s less than 4%, and passed along lease cash, to Ford coming in low 50s, mid 5% APR, and no incentives for lease.

It’s their prerogative so whatever but a shock nonetheless.
Ford has apparently made a business decision to discourage leasing of the MME. You're right, that's their choice and I agree that the residuals, money factors, and lack of any incentive is a significant deterrent, but that's all on purpose I guess to discourage MME leasing.

As another point of comparison, BMW greatly subsidizes leasing with supported residuals and incentives. For a lower drive off and monthly payment, a consumer can lease a M550 instead of a MME FE, and of course it doesn't even have a $7500 tax credit to add to the mix. Strange.

January 2021 Lease Program:
2021 MODEL YEAR

530i (2021MY)

15k miles / 56% residual
12k miles / 58% residual
10k miles / 59% residual
540i (2021MY)
15k miles / 56% residual
12k miles / 58% residual
10k miles / 59% residual
530e (2021MY)
15k miles / 56% residual
12k miles / 58% residual
10k miles / 59% residual
M550 (2021MY)
15k miles / 56% residual
12k miles / 58% residual
10k miles / 59% residual
(530e) $1750 lease credit
(540) $1500 lease credit
(M550) $1000 lease credit
(All 5 Series) $750 loyalty credit
 

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I believe for purchase it’s .9 up to 48, 1.9 for 60, and 3.9 for 72. That’s just off the top of my head.

options is 2.25 for 36 or 48.

Lease is something like 5.4
@machefan

I like to add a disclaimer here. The APR purchase rates described are for qualifying Tier 0/2 approvals. The Options and Lease rates shown are for qualifying Tier 0/1 approvals. If score into a lower tier your rates will be higher.
 

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@machefan

I like to add a disclaimer here. The APR purchase rates described are for qualifying Tier 0/2 approvals. The Options and Lease rates shown are for qualifying Tier 0/1 approvals. If score into a lower tier your rates will be higher.
While I know I usually don't have an issue in this area what are the tier criteria's these days for Ford?
 

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While I know I usually don't have an issue in this area what are the tier criteria's these days for Ford?
The credit scorecards are proprietary and very complicated. There's no set formula or criteria to say X FICO score and X percent advance will = X tier.
 

machefan

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The credit scorecards are proprietary and very complicated. There's no set formula or criteria to say X FICO score and X percent advance will = X tier.
Where have I heard this before, hmmm 🤔
 

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The credit scorecards are proprietary and very complicated. There's no set formula or criteria to say X FICO score and X percent advance will = X tier.
Agree- having worked at banks, risk decisioning is the secret sauce for any company that issues credit. Never the same and FICO is just one input.
 

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The credit scorecards are proprietary and very complicated. There's no set formula or criteria to say X FICO score and X percent advance will = X tier.
The secret sauce is in a SCIF inside of a mountain, behind a very, very thick set of doors.

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According to the results of the study, the Model S loses 36.3% over a three year period. Not as good as the 10.2% for the Model 3 which almost defies logic....and economics.
That's the drop in the price of a new Model S. LOL Hard. Very hard. No make that impossible to believe buyers would be willing to pay the same price for a used Model S as for a new Model S. Do you want that brand spanking new Model S for $69K or the used one with 36K miles for $76K?

Hopefully you leased.
 

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Obviously, there is a chance that in 3 years the MME value is way higher than 40% and everyone who bought or did Ford Options will be pretty happy
I think there is zero percent chance the value will be more than 40% in 3 years. Market growth, battery technology advancement, expanded choice in EVs, etc.
 

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I think there is zero percent chance the value will be more than 40% in 3 years. Market growth, battery technology advancement, expanded choice in EVs, etc.
The way I look at it is equivalent to buying a laptop or PC, they all lose their value as better things come along. In the case of the MME it's biggest downfall most likely will be battery capacity. Another resale issue that has to do with all EV's are battery degeneration that takes place over time which is mostly unavoidable. Until there is either an affordable or practical battery replacement the value will continue to tail off. In the case of the FE MY2021 it might hold a bit better since it's a limited run but those days are likely over. There will be other factors but technology will prevail and body styles will evolve. It takes a short time for the value to drop and a much longer term for it to go up if it becomes a collector car. Ford will continue to release more advanced MME's going forward and each will look more attractive than previous years. Attractive these days is more around technology and capacity, less on looks.

Just my thoughts!
 

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The answer seems simple but some people here seem to struggle mightily so let's go over it one last time:

A manufacturer has a vehicle which they believe has a FMV of $50K. A reasonable residual would be $25K. The government now gives a $5K credit/rebate. What does the manufacturer do? Obviously it increases MSRP to $55K since that effectively leaves FMV at $50K.

For leasing it has choices. It can increase the residual to $30K or 55%. It can use the $5K as cap reduction and leave the residual at $25K or 45%. It can do a combination of these. Or, as Ford has done with Ford Options, it can leave the MSRP at $55K and the residual at $25K and let the customer have the $5K as a rebate. And of course there are other factors it can use, such as incentives and interest rates.

So the answer to the question of "where that $7500 went" is: With Ford Options as a rebate to the customer. With RCL to the residual.
Great explanation, thanks! The bottom line for me is that since I will only keep the car for three years, I don't really care what the residual is other than how it affects the overall cost. At the moment I cannot make that determination because Ford doesn't include RCL in the finance tools on Ford.com (why?). Right now if I compare Ford Options on Mach-e with a lease from Tesla Model Y (which I am not considering) or VW ID.4 (which I am), Ford Options is not a very good deal. I would love to be able to see if RCL is better or worse than Options.
 

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