Mach-E resale value

[bullshark]

I won't worry too much about re-sale value, otherwise I better get a used car. Life is too short, better enjoy it while we can. On the other hand, I plan to keep it for 8 years, most car will be worth 1/10 of the value, just like my 10-year old Lincoln.

Sponsored

 

[TheSteelRider]

All I know is that auto manufacturers have armies of accountants and lawyers to assure they always come out on top. Always. You can roll the dice and enjoy the game, but the house always wins. Predicting the value of something years in advance is, probably for the most part, fools folly. Note this is definitely not a statement on lease vs. finance vs. cash buy. You are just screwed any way.

 

[RyZt]

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.

People here are making the Ford Options calculation assuming they'll keep the car long-term.

Basically, people are comparing all-cash purchase vs Ford Options (maximize down payment, maximize monthly payment, take retain option at the end). The latter can come out ahead assuming there's a good enough Ford Options incentive. And as a bonus, you get to spend those cash later.

 

[ARK]

All I know is that auto manufacturers have armies of accountants and lawyers to assure they always come out on top. Always. You can roll the dice and enjoy the game, but the house always wins. Predicting the value of something years in advance is, probably for the most part, fools folly. Note this is definitely not a statement on lease vs. finance vs. cash buy. You are just screwed any way.

I think the MME is likely to be particularly challenging for Ford in making an accurate prediction of future value. With Explorers, F150s, Focuses, Mustang coupes, etc., Ford has a long track record and has good info to know what to expect with residual values. But the MME is a brand new line and the company’s first real BEV. And what other few BEVs exist are all over the place with residual value, with some of the best (Model 3) and worst (Leaf) residual values in the industry.

But you are in the end probably right - I’m sure Ford will be conservative and assume significant depreciation to protect their bottom line with any leases. If they are right, the depreciation is paid for during the lease. If they are wrong, i.e. the car is worth a lot more than expected at lease end, you have to buy the car (or be informed enough to know the purchase price is fixed in your favor in this scenario to negotiate a new purchase/lease off of that) to capture back the equity.

 

[SD_Solar]

But you are in the end probably right - I’m sure Ford will be conservative and assume significant depreciation to protect their bottom line with any leases.

And with a finite limited production for 2020 – 2021 and what appear to be a high NA / Europe demand for the E-Mustang, Ford has the luxury of offering an “Option Lease” to buyers who insist on a walk away option even though the cost will be several thousand $’s higher than the low financing rates offered.

 

[timbop]

And with a finite limited production for 2020 – 2021 and what appear to be a high NA / Europe demand for the E-Mustang, Ford has the luxury of offering an “Option Lease” to buyers who insist on a walk away option even though the cost will be several thousand $’s higher than the low financing rates offered.

yup

 

[Raymondjram]

I had a bad experience with my wife's lease of her third Volvo, so I prefer buying and keeping the vehicle longer. My two previous cars (Oldsmobile and Buick) lasted 26 and 21 years, and both were sold privatelly to a new owners, so I came out well ahead. My present 2014 Fusion Hybrid is seven years old and already paid for, and I plan to hold on to it for another five or more years.

I am now saving to gather a larger down payment (30 to 35%) and when I buy my own Mach-E I will keep it for al least ten years. Ford will produce better EVs by 2030 and later but I know that an EV will depreciate much less than a equivalent ICEV during the same period. I get a 1.7% loan interest at my federal credit union, but I expect Ford to offer a beter financing someday for just five years.

 

[silverelan]

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?

If you consider that a Tesla Model 3 from 2017 has the same best-in-class range and charging speed of one today, then it helps explain why they retain their value so well.

How will the 2021 Mach-E's range and charging speed compare against rivals in 2024?

 

[dbsb3233]

If you consider that a Tesla Model 3 from 2017 has the same best-in-class range and charging speed of one today, then it helps explain why they retain their value so well.

How will the 2021 Mach-E's range and charging speed compare against rivals in 2024?

My guess is that has more to do with the alternatives at the time. Meaning, there really isn't all that much more direct alternative to Tesla in 2018, 2019 and 2020 than there was in 2017. In most of the US, about the only viable alternatives truly available in close to the same price range were the Bolt and the Leaf (and they're met with an "eh" by most buyers). The Kona and the Niro looked like they could be but they continue to remain mostly unavailable outside of CA. Tesla has remained mostly unchallenged, thus resale value has held.

However, that's about to change. There's more truly viable BEVs coming out in the next few years to directly compete with Tesla (in all 50 states). Like the Mach-E, the Ariya, the ID.4, etc.

So while Tesla was able to hold resale value from 2017 to 2020, I don't expect that to hold as well from 2020 to 2023. Their near-monopoly on the US BEV market is about to end.

 

[ClaudeMach-E]

Buy or lease I have chose to lease for two main reasons. The first is that the MME is a first year of existence and their could be issues that we don't now. The second because it's an EV an many specialisst are recommanding the lease option for the main reason of technology exponential evolution. I was surprise though to learn that whatever the amount of cash you are giving on a lease it doesn't change the residual value but only making your monthly payment lower. All that said I'm not paying any cash has such has my down payment will consist of my trade in and the government incentives. In the case I chose to keep the car after the lease then I will buy it. The MME will be for me a dream car and my hope is that there will be no big issues with the car and that I will be able to keep it for at least 10 years even if technology has evolve a lot if I am please with it.

 

[Kamuelaflyer]

Buy or lease I have chose to lease for two main reasons. The first is that the MME is a first year of existence and their could be issues that we don't now. The second because it's an EV an many specialisst are recommanding the lease option for the main reason of technology exponential evolution. I was surprise though to learn that whatever the amount of cash you are giving on a lease it doesn't change the residual value but only making your monthly payment lower. All that said I'm not paying any cash has such has my down payment will consist of my trade in and the government incentives. In the case I chose to keep the car after the lease then I will buy it. The MME will be for me a dream car and my hope is that there will be no big issues with the car and that I will be able to keep it for at least 10 years even if technology has evolve a lot if I am please with it.

There's an old axiom in aviation, "Never buy or fly the A-model of anything." (Aircraft versions of the same model were traditional labeled A through Z). We're all violating both parts, myself included.

 

[silverelan]

The question still stands, "How will the 2021 Mach-E's range and charging speed compare against rivals in 2024?"

I think the answer will drive the resale value.

Sponsored