Mach-E resale value

Musbie

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Just read that other than Tesla, electric cars lose over 50% of their original value in three years. For those of you who plan to buy and keep ithe MME for longer, just wondering if you have considered the possible resale value after 5 to 8 years. It seems that maybe resale is probably not a good option so maybe the plan is to keep it as long as the car is working well?
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mark360

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Just read that other than Tesla, electric cars lose over 50% of their original value in three years. For those of you who plan to buy and keep ithe MME for longer, just wondering if you have considered the possible resale value after 5 to 8 years. It seems that maybe resale is probably not a good option so maybe the plan is to keep it as long as the car is working well?
Resell value will be fine, like any other car. I lost 10k after a year on my Tesla. My New Ford Raptor is worth more than I paid for it.

Correction - I paid 62k for my Tesla and sold it a year and a half later for 38k. That's certainly not good.
 

machefan

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Resell value will be fine, like any other car. I lost 10k after a year on my Tesla. My Ford Raptor is worth more than I paid for it.
Can't be any worse than my current Nissan Leaf, so I am head before even taking delivery. :)
 

mark360

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With My Tesla, I forgot they lowered the price two or three times from when I bought it. My same Tesla can be bought for 49k brand new now whereas I paid 59k before taxes back in 2018.
 

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Yes, which is why I am planning to go with the Ford options plan: it's a hedge against the value plummeting, and if much better batteries are available 4 years from now. Tesla's resale is currently propped up pretty well by Tesla themselves, but I don't think that is sustainable. With much more direct competition over the next few years, Tesla will see a similar decline in value.
 


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With My Tesla, I forgot they lowered the price two or three times from when I bought it. My same Tesla can be bought for 49k brand new now whereas I paid 59k before taxes back in 2018.
Yes, but you got the federal $7500 rebate so the "effective" price only dropped $2500.
 

ARK

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Leases factor in anticipated depreciation so when Ford releases numbers for Ford Options it should give us all a sense of where Ford sees the car's value in three years.

To give an example if your MME has an MSRP of $60,000 and your total lease payments and down payment for a three year lease amount to $25,000, Ford is maybe projecting about 35% depreciation (anticipating what the car will be worth when they get it back, but also accounting for the fees they wanna build into to lease as part of their profit margin for the financing and having to deal with the added costs of administering a lease instead of washing their hands of the car with a sale - so with this example, 35% depreciation would mean the car is worth $39,000 at the end of the three years, you've paid for that $21,000 in depreciation and given Ford $4,000 more for administering the lease, interest for the de facto loan, and their profit on the lease).
 

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Yes, which is why I am planning to go with the Ford options plan
I just don’t see how you can consider the Ford Option Plan as a viable lease choice.

From the Ford Mach-E web site a Premium --- Ext R --- AWD with Dest = $58,800
35 Mo Payments of $808/Mo $5,770 Down 10,500 mi/Yr Total Balloon = $25,872

So, after 36 Mo you have sent Ford $34,050 and got a $7,500 Fed Tax Credit.
Final cost if you walk away from it --- $26,550 to drive 31,500 mi or $0.84 / mile.
Pretty expensive rental car.

Your only reasonable choice here would be to pay off the Balloon as this vehicle will be worth at least $8,000 above that.
Three year old Model S 75D’s with 40,000 miles sell for over $45,000 and I would definitely rather have this Premium over any of them.
 
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hybrid2bev

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Leases factor in anticipated depreciation so when Ford releases numbers for Ford Options it should give us all a sense of where Ford sees the car's value in three years.

To give an example if your MME has an MSRP of $60,000 and your total lease payments and down payment for a three year lease amount to $25,000, Ford is maybe projecting about 35% depreciation (anticipating what the car will be worth when they get it back, but also accounting for the fees they wanna build into to lease as part of their profit margin for the financing and having to deal with the added costs of administering a lease instead of washing their hands of the car with a sale - so with this example, 35% depreciation would mean the car is worth $39,000 at the end of the three years, you've paid for that $21,000 in depreciation and given Ford $4,000 more for administering the lease, interest for the de facto loan, and their profit on the lease).
I think you're going to see Ford Options residual values in the US come in the mid-high 30's and low to mid 40's depending on the mileage and term selected. Nowhere near the 65% that you're calculating.

You can select either a 36 month term (35 monthly payments + 1 balloon) or 48 month term (47 monthly payments + 1 balloon). Mileage will range from 7500 to 19500.
 

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I just don’t see how you can consider the Ford Option Plan as a viable lease choice.

From the Ford Mach-E web site a Premium --- Ext R --- AWD with Dest = $58,800
36 Mo Payments of $808/Mo $5,770 Down 10,500 mi/Yr Total Balloon = $25,872

So, after 36 Mo you have sent Ford $34,858 and got a $7,500 Fed Tax Credit.
Final cost if you walk away from it --- $27,358 to drive 31,500 mi or $0.87 / mile.
Pretty expensive rental car.

Your only reasonable choice here would be to pay off the Balloon as this vehicle will be worth at least $8,000 above that.
Three year old Model S 75D’s with 40,000 miles sell for over $45,000 and I would definitely rather have this Premium over any of them.
OR you can apply the equity to another vehicle - one that perhaps has the next generation battery with 2x DCFC charge rate and 400 mile range. With a true lease you have to buy the car to get the equity, with the options plan you don't.
 

dbsb3233

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Just read that other than Tesla, electric cars lose over 50% of their original value in three years. For those of you who plan to buy and keep ithe MME for longer, just wondering if you have considered the possible resale value after 5 to 8 years. It seems that maybe resale is probably not a good option so maybe the plan is to keep it as long as the car is working well?
We keep our cars till near the end of their life anyway so resale value is a non-issue for me. But yes, since batteries are expected to get better and better through the decade, I do expect resale value to decline more than normal. A 2025 model may get 50% more range and charge 2x as fast. Hard to compete with that.
 

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I am really intrigued on the Ford Options program. It almost seems too good to be true but I am notoriously bad at math so I'm glad this discussion is taking place.
 

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I plan to do the 4 year options plan of a Select with the tech package. Here's my thinking in more detail with the possible scenarios playing out in 2025 in decreasing likelihood:

1. Ford was right, and the MME value dropped like a rock because so many better cars with better performance have hit the road. No equity in the car, I walk away, and buy one of those better cars.

2. The resale is much better on the MME and I have equity, but Ford's 2025 BEV's are better cars with longer range and faster DCFC charging. I roll the equity into one of those.

3. I love the car after 4 years, there's nothing I want instead, so I buy out the remaining 32%. The fact that I paid more than I had to doesn't really hurt me because the buyout of the balloon is lower

4. Ford's new BEVS suck, but I have some equity so I buy the car outright and resell it privately to maximize what I get back. I buy somebody else's better BEV
 

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With a true lease you have to buy the car to get the equity, with the options plan you don't.
You are loosing me here. :)

If you don't pay off the balloon --- Ford owns the car.
If you do pay off the balloon, it was just another type of financing plan, although it would have cost less to start with a 0.9% APR plan and a $1,000 Ford Credit Bonus.

On a 36 month payment plan your interest cost will be only about $750, so with the $1,000 Bonus it costs less then paying cash.
 
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With My Tesla, I forgot they lowered the price two or three times from when I bought it. My same Tesla can be bought for 49k brand new now whereas I paid 59k before taxes back in 2018.
Didn't Elon tell us a while back that Teslas would appreciate in value?
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