Thinking Seriously About Getting a Mach-E but.........

[Briguy]

I obviously have questions before pulling the trigger. I am picking up a premium extended range AWD to drive from my local dealer tomorrow for the weekend. They have about a dozen on their lots for sale. We will be leasing based on Ford RCL offering $4500 RCL cash in my area and I qualify for the X plan. The anticipated lease payment is too good to pass up for our situation. Questions I have:

• Window stickers do not account for the price cut Ford did in May. I can build one $4000 cheaper on the website. Are dealers typically doing anything about this or is the current incentives likely the equalizer here?
• I do not believe I have seen anyone get the $7500 kick back for the Fed tax credit. Is that kick backed to Ford directly or does a dealer have any say?
• We are trading in/selling our Ford Bronco. Selling to dealers would likely result in getting a little more than what we paid for it a year ago based on offers from CarMax, Vroom, etc. I could sell through a private sale for a bit more but is there a benefit in trading it into the dealer we are potentially buying the Mach-E from? I understand in the state of Kansas you get a sales tax credit when trading in the vehicle but would that be the case if I have an outstanding loan on the vehicle?

Appreciate everyone's help here. Thank you.

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[thekat03]

Current incentives: https://www.edmunds.com/ford/mustang-mach-e/2023/deals/
I don't think I've seen lease incentives for the federal tax rebate, from Ford. Definitely worth asking about, though.

 

[bgarrett4917]

Sounds like a nice ride. To answer your questions:

1. The dealership should give you a rebate for the new discounted price Ford is offering. If they don't they're pocketing the money, so buyer beware.
2. The MME is eligible for half the tax credit which comes to $3,750 which comes off your tax return (assuming you have that much in tax liability). It's a non-refundable tax credit.
3. If the dealership is willing to give you a good trade-in value on your Bronco, that' the best route. If you sell it yourself, plan on selling it for whatever percentage above your sales tax rate to breakeven. It also may be worth it so you don't have to deal with the hassle of selling it yourself.

Enjoy the extended test drive!

 

[Maquis]

Sounds like a nice ride. To answer your questions:

1. The dealership should give you a rebate for the new discounted price Ford is offering. If they don't they're pocketing the money, so buyer beware.
2. The MME is eligible for half the tax credit which comes to $3,750 which comes off your tax return (assuming you have that much in tax liability). It's a non-refundable tax credit.
3. If the dealership is willing to give you a good trade-in value on your Bronco, that' the best route. If you sell it yourself, plan on selling it for whatever percentage above your sales tax rate to breakeven. It also may be worth it so you don't have to deal with the hassle of selling it yourself.

Enjoy the extended test drive!

1. Agree. There should be a new window sticker available showing the new price.
2. Not applicable to a retail lease. The lessor gets the tax credit. Some have calculated that Ford is passing on part of the credit in the form of higher residual values on the lease.
3. Yes!

 

[goodguy]

The price cut in May, I thought is more complicated.... Mach Es made before then come with 3 years Blue Cruise and the power cord. So the 2k rebate is too really offset the 4k drop in MSRP. Ones after May are not really on lots yet but would be cheaper but have $2600 less value if you value those two items at $2600. With that said most dealers offering more money off to sell them.

 

[RedHookEnzo]

My understanding with leases is that there is no tax credit available. I think that’s the norm for most manufacturers since you don’t really own the vehicle, per se. In NY you still get state applied as a credit at sale, lease or not, which is nice. Your state may do the same.

 

[Briguy]

Wanted to follow up on this one after driving the Mach-E over the weekend. Really enjoyed the car. My wife fell in love with it. Numbers however are not where we thought they would be as it relates to the monthly lease payment. First off, the impression Ford's website provides with regards to an estimated monthly payment is way off. Second, I am not so sure about the numbers I was quoted by the dealer. I have omitted my personal info and dealer info from the attached quote. This is for an outright lease with no trade in. A few observations:

• The MSRP ($62795) is for a pre-May price cut vehicle that comes with Bluecruise standard.
• The discount ($971) reflects my X-plan pricing (which is way less than what Ford's X-plan site stated which was closer to $2700.)
• Because I am using the X-plan I am told that I do not qualify for all incentives. Per edmunds forum there was a total of $4500 in RCL incentives for my area but the dealer says I only qualify for $2500.
• The tax amount on this quote seems too high. (over $5600) Our tax rate where I live on vehicles is 9.475% I thought you were only charged sales tax on the lease amount that will be paid?

Either way, my zero out of pocket idea of having a $700ish monthly payment was way off.

 

[RickMachE]

I obviously have questions before pulling the trigger. I am picking up a premium extended range AWD to drive from my local dealer tomorrow for the weekend. They have about a dozen on their lots for sale. We will be leasing based on Ford RCL offering $4500 RCL cash in my area and I qualify for the X plan. The anticipated lease payment is too good to pass up for our situation. Questions I have:

• Window stickers do not account for the price cut Ford did in May. I can build one $4000 cheaper on the website. Are dealers typically doing anything about this or is the current incentives likely the equalizer here?
• I do not believe I have seen anyone get the $7500 kick back for the Fed tax credit. Is that kick backed to Ford directly or does a dealer have any say?
• We are trading in/selling our Ford Bronco. Selling to dealers would likely result in getting a little more than what we paid for it a year ago based on offers from CarMax, Vroom, etc. I could sell through a private sale for a bit more but is there a benefit in trading it into the dealer we are potentially buying the Mach-E from? I understand in the state of Kansas you get a sales tax credit when trading in the vehicle but would that be the case if I have an outstanding loan on the vehicle?

Appreciate everyone's help here. Thank you.

Wanted to follow up on this one after driving the Mach-E over the weekend. Really enjoyed the car. My wife fell in love with it. Numbers however are not where we thought they would be as it relates to the monthly lease payment. First off, the impression Ford's website provides with regards to an estimated monthly payment is way off. Second, I am not so sure about the numbers I was quoted by the dealer. I have omitted my personal info and dealer info from the attached quote. A few observations:

• The MSRP ($62795) is for a pre-May price cut vehicle that comes with Bluecruise standard.
• The discount ($971) reflects my X-plan pricing (which is way less than what Ford's X-plan site stated which was closer to $2700.)
• Because I am using the X-plan I am told that I do not qualify for all incentives. Per edmunds forum there was a total of $4500 in RCL incentives for my area but the dealer says I only qualify for $2500.
• The tax amount on this quote seems too high. (over $5600) Our tax rate where I live on vehicles is 9.475% I thought you were only charged sales tax on the lease amount that will be paid?

Either way, my zero out of pocket idea of having a $700ish monthly payment was way off.

A couple of points.

"We are trading in/selling our Ford Bronco. Selling to dealers would likely result in getting a little more than what we paid for it a year ago based on offers from CarMax, Vroom, etc. I could sell through a private sale for a bit more but is there a benefit in trading it into the dealer we are potentially buying the Mach-E from? I understand in the state of Kansas you get a sales tax credit when trading in the vehicle but would that be the case if I have an outstanding loan on the vehicle?"

- The only benefit in selling to a dealer would be a sales tax benefit DEPENDING ON THE RULES IN YOUR STATE. Read them and understand them carefully. I always sell privately and come out way, way ahead, because most dealers won't beat a private sale, or even a Carvana sale.

- Any incentive that X-Plan doesn't qualify for says so right on the incentive.

 

[GreaseMonkey]

A couple of things:

1. x-plan discount seems about right from my experience last year. To compute it yourself, take invoice (not msrp), multiply by 2% and subtract $275 in admin fee.

2. ask the dealer for the residual value and money factor they’re using and compare with the info provided at the Edmunds blog for the Mach-e (https://forums.edmunds.com/discussi...ford-mustang-mach-e-lease-deals-and-prices/p8). Dealer might be padding the shit out of the money factor. You can do the math on lease payments yourself or use an online calculator.

3. Typically “great” lease deals are in the 100 range when dividing the msrp by monthly payment pre tax and fees. For example, $50k msrp would cost $500/ month before taxes. Disclaimer: this is subjective, not scientific, and based on my personal opinion.

4. Rick is right that in most cases you’ll be better off selling private vs trading in. However, with a high sales tax and a high value vehicle like a bronco, the tax impact is such that you might be better off trading in. Just do check what rules apply. When I lived in Michigan, I always sold privately, but when I moved to Chicago I traded in. I know how to sell both ways, so I let the numbers guide my decision.

5. I would go to Tesla and pick a Model Y from inventory (heavily discounted) and ask them to put some numbers together for you. Provided it’s cheaper (which is likely) you can show to your dealer and say I’d like to stay close to this monthly lease cost.

 

[AtomicInternet]

My local dealer has a same-specd premium I tried to get them to come down to current pricing on. They would not budge. Only possible difference is the one on the lot includes the $500 charger vs. online not included. The price gap was $10k, so I just ordered one online. I guess someone more impatient than me will pay them an extra $10k to have it now.

 

[goodguy]

They make it so hard to compare... I also had access to xplan.... but did not use as the savings offered by my dealer were better.
In my case I got a Premium Mach E RWD regular Battery. came with the cord and Blue Cruise....
All my numbers include destination charge but not dealer fee and no taxes and registration. MSRP was 52795. The Pre May drop MSRP). They had it listed with $4800 off... then I got them to come down another $250 and added $1000 military to it. So $46795... but did have to pay $800 dealer fee on top of that. Current X Plan without Blue Cruise and cord is $45,876. But does not include cord and blue cruise AND you would have to wait for the order to come in (SEE associated horror stories here). So my point is that many dealers are doing better than xplan on the old pre may vehicles.... Seems they are getting discounts (some published, I think some secret) from Ford to move these along.... I do understand xplan limits dealer fee. but i went through same thing. In this case Xplan locks them in. and I determined was not the best way to buy a pre May car. I determined the same thing years ago when i bought a Ford Energi....Had xplan did not use it.

 

[4sallypat]

Wanted to follow up on this one after driving the Mach-E over the weekend. Really enjoyed the car. My wife fell in love with it. Numbers however are not where we thought they would be as it relates to the monthly lease payment. First off, the impression Ford's website provides with regards to an estimated monthly payment is way off. Second, I am not so sure about the numbers I was quoted by the dealer. I have omitted my personal info and dealer info from the attached quote. This is for an outright lease with no trade in. A few observations:

• The MSRP ($62795) is for a pre-May price cut vehicle that comes with Bluecruise standard.
• The discount ($971) reflects my X-plan pricing (which is way less than what Ford's X-plan site stated which was closer to $2700.)
• Because I am using the X-plan I am told that I do not qualify for all incentives. Per edmunds forum there was a total of $4500 in RCL incentives for my area but the dealer says I only qualify for $2500.
• The tax amount on this quote seems too high. (over $5600) Our tax rate where I live on vehicles is 9.475% I thought you were only charged sales tax on the lease amount that will be paid?

Either way, my zero out of pocket idea of having a $700ish monthly payment was way off.

Are you referring to the Job 2 pricing (2023.5)?
If so, Job 2 does not have BC nor mobile charging cord.

Yours w/ BC & charge cord appears to be a Job 1 MME which is priced at the February 2023 pricing.

How much out of pocket are you doing ?

Lease discount is taken in via higher RV / lower MF and not a cap cost reduction.

Taxes on leases are paid usually monthly but some states you pay up front.

Here in So Cal, we have a $500 lease (plus sales tax each month) on a Select base MME.
For me, it would be $550 / month lease with $5279 drive off plus TTL.
Effectively, with all the fees rolled in, it still would be $650/month on a SELECT base trim.

This is for a Job 1 MME advert in So Calif:

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