Mach-E Lease Residuals Released For Q1 Are Impressive!

[jdmrc93]

The value of M3 & MY are dropping.

Even though I'm getting a FE, I feel as though it won't hold value at all. I mean, why would it, if in 3-4 years, new batteries can kick out 500-600+ miles of range in the same space? Unless they offer battery upgrades/swaps in the future, then these "early"-ish Ford electric cars aren't something people are going to want to pay good money for in the future as a used offering.

Sponsored

 

[malba2366]

The options is really not that bad. You are looking at a 55-60+% residual (on the premium trim which seems to be the biggest seller) for a 15,000 mile lease after you factor in the state and federal tax incentives. This is why the actual residuals suck...Ford has to factor in that the tax credit will likely be gone in 3 years when the cars are coming off of lease which will necessitate a price cut to remain competitive. It will all depend on the rates...the 5-6% interest rate they have posted is completely non-competetive...anyone with decent credit can walk into a credit union and get an auto loan for 2.5-3%.

 

[hybrid2bev]

The options is really not that bad. You are looking at a 55-60+% residual (on the premium trim which seems to be the biggest seller) for a 15,000 mile lease after you factor in the state and federal tax incentives. This is why the actual residuals suck...Ford has to factor in that the tax credit will likely be gone in 3 years when the cars are coming off of lease which will necessitate a price cut to remain competitive. It will all depend on the rates...the 5-6% interest rate they have posted is completely non-competetive...anyone with decent credit can walk into a credit union and get an auto loan for 2.5-3%.

The residual for Options is not 55% (that’s the lease residual).

See the Options residuals here:
https://evbite.com/ford-mustang-mach-e-lease-terms-revealed/

The 5% rate is the lease money factor not the Options rate, also listed on the link above.

 

[malba2366]

The residual for Options is not 55% (that’s the lease residual).

See the Options residuals here:
https://evbite.com/ford-mustang-mach-e-lease-terms-revealed/

The 5% rate is the lease money factor not the Options rate, also listed on the link above.

I meant to say that under the options plan the residual works out to 55-60+ after you factor in the tax credits you receive in full (federal plus state in some cases). The traditional lease is a non starter with those rates.

 

[OdellBretthamJr]

Can someone calculate what a Premium AWD ER lease would be for 3 years and 13,500 miles? Assuming the $7,500 tax credit is applied to the base value.

 

[DBC]

Even though I'm getting a FE, I feel as though it won't hold value at all. I mean, why would it, if in 3-4 years, new batteries can kick out 500-600+ miles of range in the same space? Unless they offer battery upgrades/swaps in the future, then these "early"-ish Ford electric cars aren't something people are going to want to pay good money for in the future as a used offering.

I wouldn't be this pessimistic. The energy density for batteries goes up 8% a year, and you won't see any range increase from that until the next model with different battery tech comes out. It's simply not economically viable for Ford to revamp the battery technology every year. Maybe a tweak here or there but nothing really significant.

More than likely the new tech will be a combination of modest increases in range and some new tech. And the existing models might get at least some of those modest increases in range and some of the new tech through OTA updates.

 

[DBC]

Both my BMW i3 and BoltEV had lease residuals at 60 or above. Doesn’t seem like the MachE is anywhere in the ballpark.

The $7500 tax credit is about 15% of MSRP. If you take the Options residual and add 15% it gets to roughly 55%-60% of MSRP depending on the mileage allowance.

If you have no interest in keeping the vehicle after the lease term high residuals are great. If not then not so much. Ford Options essentially gives you a cap reduction.

 

[FredT]

If you have no interest in keeping the vehicle after the lease term high residuals are great. If not then not so much. Ford Options essentially gives you a cap reduction.

Can you explain what you mean by that? I am definitely not keeping the car longer than three years, so lease or options are what I have to decide between. I have been looking at Options using the $7500 credit added to the down payment as a comparison with other leases (MY, ID.4). Everything else equal, I prefer lease to reduce sales tax (California).

 

[eltonlin]

Can you explain what you mean by that? I am definitely not keeping the car longer than three years, so lease or options are what I have to decide between. I have been looking at Options using the $7500 credit added to the down payment as a comparison with other leases (MY, ID.4). Everything else equal, I prefer lease to reduce sales tax (California).

I think the $2500 incentive offered with Options (at least till Jan) will offset the sales tax you may be paying upfront.

 

[Barno]

I think the $2500 incentive offered with Options (at least till Jan) will offset the sales tax you may be paying upfront.

Hi. Does Ford also receive state tax credits with a lease? NY has @ $2500 credit, at least until we go bust.

 

[DBC]

Can you explain what you mean by that? I am definitely not keeping the car longer than three years, so lease or options are what I have to decide between. I have been looking at Options using the $7500 credit added to the down payment as a comparison with other leases (MY, ID.4). Everything else equal, I prefer lease to reduce sales tax (California).

If the lease is adding the credit or some part of the credit to the residual then at the end of the lease term the buyout price will be substantially above FMV. If you don't intend to keep the vehicle after the lease term no big deal.

You'll have to check out the numbers because Options does have a $2500 discount which should more or less cover the sales tax on the second installment.

Nothing wrong with adding the tax credit to the down as cap reduction. That works. Another way to make the comparison is to just divide the tax credit by the lease term to get the reduction in the monthly ($7500/36=$208).

 

[buffasnow]

Hi. Does Ford also receive state tax credits with a lease? NY has @ $2500 credit, at least until we go bust.

Pretty sure NYS gives only max $2K (for <$60K MSRP) to dealer at time of sale.

 

[timbop]

In NJ the program will eventually be a "cash on the hood" program so that the $5000 state rebate would go directly as a downpayment to the dealer. For the near term it works as a $5000 rebate to the consumer regardless of whether you lease or finance (including options plan).

With the $2500 cash incentive on the options, the fact that NJ has no sales tax on BEVs, and the $12,500 in government deductions/rebates the 48 month options plan is far better than the regular lease. The balloon payment for my route 1 is $17,300 on a 48 month options contract with 15k miles, and I am getting $15k in cash from Ford, Uncle Sam, and NJ - basically enough money to buy the thing outright at the end AND a manageable monthly payment.

 

[Barno]

Pretty sure NYS gives only max $2K (for <$60K MSRP) to dealer at time of sale.

Thanks.

 

[AndyS_OSU]

The $7500 tax credit is about 15% of MSRP. If you take the Options residual and add 15% it gets to roughly 55%-60% of MSRP depending on the mileage allowance.

If you have no interest in keeping the vehicle after the lease term high residuals are great. If not then not so much. Ford Options essentially gives you a cap reduction.

I’m totally on board with options if my car is delivered before January 1. I don’t know that I’m interested in jumping through all the hoops of adjusting my tax withholdings for a year and claiming the tax credit more than a year from now.

I was hoping this new lease product would come in on the high 50s residual from Ford (it does if you go with 10k miles/year) but with a WAY more competitive money factor. A .0021 money factor makes it a nonstarter. If Ford would get it down to the .001 area (or better yet, around a 1.9% APR), it would put them right in the middle of the pack rate wise and make it a way more appealing and competitive program. @hybrid2bev

Sponsored