Mach-E Lease Residuals Released For Q1 Are Impressive!

[RyZt]

• Premium Extended Range (AWD): 58%
• First Edition Extended Range (AWD): 58%

My understanding is that the 58% residual value (for Premium ER AWD and FE) only applies to RCL. The Ford Options residual value is 41%.

The 17% difference is $9300 for Premium ER AWD, or $9900 for FE. This is in the same ballpark as the sum of the $7500 federal credit and $2500 Ford Options credit. My understanding is that this difference is intentional.

Is this correct?

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[kdryden99]

84 months hmmm interesting. We'll see when i see the dealer.

 

[solarmoo900]

My understanding is that the 58% residual value (for Premium ER AWD and FE) only applies to RCL. The Ford Options residual value is 41%.

The 17% difference is $9300 for Premium ER AWD, or $9900 for FE. This is in the same ballpark as the sum of the $7500 federal credit and $2500 Ford Options credit. My understanding is that this difference is intentional.

Is this correct?

If this is right, then does that mean RCL might actually be a reasonable choice?

 

[hybrid2bev]

My understanding is that the 58% residual value (for Premium ER AWD and FE) only applies to RCL. The Ford Options residual value is 41%.

The 17% difference is $9300 for Premium ER AWD, or $9900 for FE. This is in the same ballpark as the sum of the $7500 federal credit and $2500 Ford Options credit. My understanding is that this difference is intentional.

Is this correct?

The 58% RCL residual is at 10,500 miles. To do an apples to apples comparison it would be 55% RCL to 41% Options (both at 3years and 15k miles per year) for the trim listed: Premium 4X.

Or 58% RCL to 44% Options (both at 3 years and 10,500 miles per year).

Yes, the RCL residual is higher than Options because of the support from the tax credits.

 

[jdmrc93]

My understanding is that the 58% residual value (for Premium ER AWD and FE) only applies to RCL. The Ford Options residual value is 41%.

The 17% difference is $9300 for Premium ER AWD, or $9900 for FE. This is in the same ballpark as the sum of the $7500 federal credit and $2500 Ford Options credit. My understanding is that this difference is intentional.

Is this correct?

Seems to be pretty baked in via the residual. RCL may be a good way to go. And, think about it... in 3 years, you're going to be drooling over the "refreshed" Mach-E with 400 miles of range. Just saying.

 

[DBC]

Seems to be pretty baked in via the residual. RCL may be a good way to go. And, think about it... in 3 years, you're going to be drooling over the "refreshed" Mach-E with 400 miles of range. Just saying.

If you can use the tax credit then RCL would be an inferior choice. Just to throw out some numbers, 55% of $55K is $30,250 whereas 41% of $55K is $22,550. That's a difference of $7,750, which is only $250 more than the tax credit of $7500. (The difference at 10K miles is even less but not significantly). So for $250 you get the option of buying the MME for $22,550 as opposed to $30,250. You'd need to be absolutely sure that you weren't going to want to keep the MME to turn down the option of spending $250 in order to get a discount of $7500.

And the discount is even greater. Much has been made of the fact that with Options you have to pay sales tax on the residual during the "lease term". This is true but with Options you get an incentive of $1000 or $2500. That might be more or less than the sales tax depending on the state but overall seems a wash. However, it's definitely not a wash at the end. Assuming the incentive covers the sales tax, then with Options you pay $250 more and get the option of buying the MME for $22,500 whereas with RCL you pay $250 less and get the privilege of buying the MME for $30,350 and paying sales tax on top of that. In effect you'e not paying $250 to get a discount of $7500, you're paying $250 to get a discount of $10,000.

Finally, the difference in interest rates means that Options will always be better. The interest rate for RCL is 3.25% higher than for Options. Assuming for simplicity the residual is the same, and ignoring the difference on the balance (both make RCL look better), 3.25% of $24K is $780. Over three years that's $2340. So with Options you pay $2000 less and get an option to buy the MME for $10K less at the end of the term. With RCL you pay $2000 more and get the option to buy the MME for $10K more.

Unless you think paying more in order to pay more is better than paying less to pay less, doesn't seem like a hard choice.

 

[jdmrc93]

Ford Mustang Mach-E Residual Values Are Better Than Mustang
Senior Pricing Analyst-January 20, 2021

Although residual values for electric cars are often significantly lower than gas models, that won't necessarily be the case with the all-new Mustang Mach-E. In fact, Ford's 1st-Quarter lease residual guide indicates that the Mach-E will actually manage to have a higher residual value than a traditional gas-powered Mustang.
For example, the 2021 Mach-E Select has a 36-month residual value of 56%, while the limited-production First Edition comes in at 58%. Meanwhile, the 2021 Mustang has residuals as low as 48% for the turbocharged convertible variant and no higher than 53% for the V8-powered GT coupe and all-new Mach 1.
To put that into perspective, Chevy's advertised lease on the 2020 Bolt LT is based on a residual of 49%. That said, this isn't an apples-to-apples comparison because the offer on the Bolt is based on a 12,000 mile-per-year lease, while the figures here for the Mach-E are based on Ford's typical limit of 10,500 miles.
Here's a full list of the Mach-E's residual values by trim:

• Select Standard Range (RWD): 56%
• Select Standard Range (AWD): 56%
• California Route 1 Extended Range (RWD): 58%
• Premium Standard Range (RWD): 57%
• Premium Extended Range (RWD): 58%
• Premium Standard Range (AWD): 57%
• Premium Extended Range (AWD): 58%
• First Edition Extended Range (AWD): 58%
• GT Extended Range (AWD): 56%

Even though the Mach-E didn't debut with a lease option right away, it does offer up to $11,000 in incentives in places like California. We've also uncovered early APR deals, plus an 84-month financing option and hidden discounts in the form of Ford Plan Pricing. A lease option finally only became available starting late last year.
Although higher residuals can make a car better to lease, the most affordable way to bring home a Mach-E may be via a "lease-like" option called Ford Options Plan involving balloon financing. The fact that Ford Credit isn't passing along a $7,500 tax credit in the form of lease cash could make the Mach-E terrible to lease.
For reference, a 2021 Hyundai Kona EV comes with at least $7,750 in lease cash from Hyundai Motor Finance here in Southern California before state & local incentives. While Ford's approach could change with time, we think this is an important distinction that could have a major impact on one's cost to lease.
Still, quirks like the fact that a Mach-E can potentially be cheaper to buy than a Mustang V8 could be a pleasant surprise. Despite recent reports of delayed deliveries, we think the sheer variety of purchase options could help make the brand's first 100% electric SUV an exciting (and potentially attainable) prospect. On the Mache forum, they have an insider whose Info has been correct each time financing becomes an issue.
Current Ford offers end on March 31, 2021.

Now that deliveries are happening, has anyone heard of the residuals for 4 year leases? If I was to do Ford options, I would have done the 4 year option anyway.

 

[AndyS_OSU]

Now that deliveries are happening, has anyone heard of the residuals for 4 year leases? If I was to do Ford options, I would have done the 4 year option anyway.

Depending on the trim Options for 48mos is around 36%

 

[hybrid2bev]

Now that deliveries are happening, has anyone heard of the residuals for 4 year leases? If I was to do Ford options, I would have done the 4 year option anyway.

Ford RCL for the Mach-E is only offered at 36 or 39 months. Ford Options is only offered for 36 or 48 months.

https://www.macheforum.com/site/thr...eleased-for-q1-are-impressive.2047/post-91388

These are low mileage RCL residuals (10,500 per year)

Options residuals are here, (the article says lease but it's really Options)
https://evbite.com/ford-mustang-mach-e-lease-terms-revealed/