Mach-E resale value

hybrid2bev

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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.
Your point is valid. Everyone will need to evaluate and compare the programs that are available at the time of delivery to see what best meets your needs. We just don't know what those program rates/rebates are going to be yet for Ford Options or standard financing.
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timbop

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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.
Not sure how I lost you:
With the Ford options plan you can roll the equity into another vehicle without having to buy it first.
 

timbop

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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.
That monthly payment would give my wife a heart attack.
 

SD_Solar

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With the Ford options plan you can roll the equity into another vehicle without having to buy it first.
How are you going to get a clean Title on the vehicle to use it as Trade In Value without first having the lien holder removed from the Title?
 

mark360

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Didn't Elon tell us a while back that Teslas would appreciate in value?
Yeah, the worlds best salesman some how. People still think the cars can drive themselves lol.
 
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dbsb3233

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At the margin, but there's likely a very small overlap of those price levels. BEV prices would have to come WAY down (lower than ICE) to steal market share from used ICE vehicles that are 1/3rd the price or less.

Before BEVs can have serious effect on ICE sales (new or used), that $10k-$15k price gap is gonna have to shrink by at least half IMO. They're still mostly out of reach for the middle class.
 

hybrid2bev

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How are you going to get a clean Title on the vehicle to use it as Trade In Value without first having the lien holder removed from the Title?
You don’t have to. If the dealer agrees to pay you more than you owe then the dealer will payoff the amount owed on the balloon (and handle all the title work). Then the surplus equity would be applied to the next loan as a down payment.
 

ARK

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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.
If you are correct, that promises to be a supremely expensive lease!
 

dbsb3233

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We may not be disagreeing. Just depends on what "reasonably-priced" is.

Plus, Ford (and the others) will be adjusting their ICE production outputs as BEV production increases. They're not going to want to produce an oversupply of new vehicles (of any type), because that would drive prices down.
 

SD_Solar

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If you are correct, that promises to be a supremely expensive lease!
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.

With the very low interest rates available for auto loans --- I don't see this as a viable option.
 
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