Update to financing options?

[OttawaGuy]

I am

If ppl leasing begin to cancel and Ford doesnt change their terms im wondering if there are enough ppl who will buy it. Im sure there will slso be some bad press from this. I wonder how much it will affect the value. Do they believe there is enough demand to take the place od the cancellations?

I guess that all depends on how fast the orders come in! Currently my dealer can order 17 MME in 2021 and I was #10 two weeks ago. By the time I get mine in, he will have ordered the 17... so if I don't take it there may be interested buyers on a waiting list!

If buyers are lining up, Ford won't have any incentive to lower price, provide better lease or financing deals...

Sponsored

 

[JTK44]

I am

If ppl leasing begin to cancel and Ford doesnt change their terms im wondering if there are enough ppl who will buy it. Im sure there will slso be some bad press from this. I wonder how much it will affect the value. Do they believe there is enough demand to take the place od the cancellations?

Several months ago, when there was only the Option Plan, I posted that I wished my dealer well in selling the FE I had reserved as I would not be taking delivery.

I also posted that I have many friends driving Teslas and they were totally unaware of the MME. Because my first car was a 1966 Mustang GT convertible, in my heart I had a soft spot for the MME.

I beginning to think that we on this board, myself included, may be in a bubble: Other than posting on this board no one I know of, or speak to, is aware of the MME and if they are aware of EV's, the only one they are interested in is the Tesla.

In any event, I have already ruled out the Option Plan, and if the lease comes in as predicted, I will not take delivery.

Time will tell, and we will all know in a short time, whether the enthusiasm expressed on this Board for the MME is limited to those of us here or is has it expanded to the general public.

As always the market place, and not the manufacturers, determines whether a car is properly priced and will be successful.

 

[kdryden99]

I guess that all depends on how fast the orders come in! Currently my dealer can order 17 MME in 2021 and I was #10 two weeks ago. By the time I get mine in, he will have ordered the 17... so if I don't take it there may be interested buyers on a waiting list!

If buyers are lining up, Ford won't have any incentive to lower price, provide better lease or financing deals...

this is what i am afraid of. I am still seeing 1400$/month for a 48month lease on an 83000$ car which will have a buyback close to 10000$ which still doesnt make sense

Edit: I stand corrected the lease now went down to 1045$tx incl. That makes more sense

 

[JTK44]

“unless your goal is to not have leases. “

I believe that is exactly Ford Credit‘s goal. Make MME leasing so unbelievably unattractive that it’s either Options or the highway. We should have suspected this when they released their new motto.

Ford Credit. It’s Our Way Or the Highway

For me this a real irony: I am presently leasing a 2018 Ford Edge Sport, MSRP of $47,000, 3 years, 10.5K miles per year, with no money down, NYS sales tax included for $407 a month. Before that a 2015 Edge Sport same terms, MSRP $46,000 for $457.

With these two leases in mind, both of which are extremely aggressive, one of the reasons I put down a deposit on the MME FE and converted it to an order was my belief that Ford would have equally aggressive leases for the MME.

Unless something changes between now and when my FE arrives, scheduled build date is 12/6, I must admit I was 100% wrong.

Seems clear that Ford is only interested in selling the MME and by doing so passing on to the buyer 100% of the risk of rapid depreciation to the buyer.

 

[malba2366]

If one is going to lease, I would say to look elsewhere for now. As things stand you could lease an Audi E tron for less money than a Mach E.

 

[JTK44]

With such low production numbers, dealers won’t have any issues selling MMEs.

Some dealers are probably hoping for some early cancellations so they can sell them at above sticker.

If you remember I previously posted that I might not be taking delivery of my Rapid Red First Edition and if anyone was interested in the car to please contact me.

That was well over a month ago.

To date: ZERO - not one inquiry.

I doubt the dealers really want the MME in inventory and personally only a "fool" would pay above sticker.

Just my $.02

 

[OttawaGuy]

I have rarely seen great lease or financing deals on new models being launched.... Unless your at the end of the model year and the next year ones are coming in!

Ford is no dummy, they know the cars will sell, and if you do not buy it, someone else will. Why try to sweet deal you into coming in to buy one!

In my side, and working in the finance world, I'm happy and surprised to get a 2.99% financing deal (for the total amount no down on 72months)

 

[kdryden99]

I have rarely seen great lease or financing deals on new models being launched.... Unless your at the end of the model year and the next year ones are coming in!

Ford is no dummy, they know the cars will sell, and if you do not buy it, someone else will. Why try to sweet deal you into coming in to buy one!

In my side, and working in the finance world, I'm happy and surprised to get a 2.99% financing deal (for the total amount no down on 72months)

Was he able to tell you your monthly payment? Did it match what is posted on the site for your car?

 

[OttawaGuy]

Was he able to tell you your monthly payment? Did it match what is posted on the site for your car?

Yes... Same interest rate... Same monthly payment as website... And same as my financial calculator

 

[malba2366]

I have rarely seen great lease or financing deals on new models being launched.... Unless your at the end of the model year and the next year ones are coming in!

Ford is no dummy, they know the cars will sell, and if you do not buy it, someone else will. Why try to sweet deal you into coming in to buy one!

In my side, and working in the finance world, I'm happy and surprised to get a 2.99% financing deal (for the total amount no down on 72months)

Yeah..not expecting subvented leases, but this one is downright horrible. 5+% interest rate is horrible considering the rate environment and they are not passing on the tax credit via a cap cost reduction on an otherwise average residual.

 

[DBC]

“unless your goal is to not have leases. “

I believe that is exactly Ford Credit‘s goal. Make MME leasing so unbelievably unattractive that it’s either Options or the highway. We should have suspected this when they released their new motto.

Ford Credit. It’s Our Way Or the Highway

Love that. Very funny. But not sure what the whining is all about. Ford is struggling with how to handle the tax credit. They came up with Ford Options which essentially gives you a lease where the credit acts as something better than either a reduction in MSRP or lease cash (cash back sooner and take your pick). Or you can finance it which is essentially the same thing. They also came up with third option -- the lease where some of the credit is added to the residual (which is not a novel way of handling the credit BTW). Or you can just get a loan from another lender or you can just buy it.

Options is a great offering, better than I anticipated, so I don't understand focusing on the lease. If you don't like the lease terms, and I don't, go in a different direction.

I think I said this in a different thread, but you can either:

1. Pay more and have an unattractive buy out price; or
2. Pay less and have a very attractive buy out price.

Nothing subtle here.

 

[JTK44]

Love that. Very funny. But not sure what the whining is all about. Ford is struggling with how to handle the tax credit. They came up with Ford Options which essentially gives you a lease where the credit acts as something better than either a reduction in MSRP or lease cash (cash back sooner and take your pick). Or you can finance it which is essentially the same thing. They also came up with third option -- the lease where some of the credit is added to the residual (which is not a novel way of handling the credit BTW). Or you can just get a loan from another lender or you can just buy it.

Options is a great offering, better than I anticipated, so I don't understand focusing on the lease. If you don't like the lease terms, and I don't, go in a different direction.

I think I said this in a different thread, but you can either:

1. Pay more and have an unattractive buy out price; or
2. Pay less and have a very attractive buy out price.

Nothing subtle here.

I am only going to point out those parts of your post that are INCORRECT so that other followers of this thread are not either mislead or misinformed:

You posted:

"Ford is struggling with how to handle the tax credit."

This is simply not true: For the past several years, every other manufacturer of high end EV's, in their leases has put the Federal Tax Credit of $7,500 into the lease as a cap cost reduction. By doing this the lessee gets the benefit of the Federal Tax Credit. By not putting the Federal Tax Credit into the lease, Ford as lessor gets the Tax Credit and you do not. Ford had the choice to do what every other manufacturer has done but choose not to.


"They came up with Ford Options which essentially gives you a lease where the credit acts as something better than either a reduction in MSRP or lease cash (cash back sooner and take your pick). "

This is simply not true. A lease is made up of two components: depreciation and interest. Most importantly the title remains in the lessor, Ford Financial and not you as lessee. Unlike a sale you cannot transfer title. In 44 out of 50 states you pay sales tax on only the sum of the lease payments.

In a sale, as opposed to a lease, the title is transferred to the buyer and the buyer pays sales tax on the full purchase price. This is true whether you buy the car, cash and/or certified check, or finance the car with equal monthly payments over a period of years, 3 to 6 years, or whether you finance the car for a fixed number of years with a balloon at the end.

The Ford Option plan is a purchase financed with a plan that has a balloon at the end. The fact that you can walk away from paying the balloon does not change a purchase into a lease.


...the lease where some of the credit is added to the residual (which is not a novel way of handling the credit BTW).


Without you specifying what you mean by "credit is added to the residual" means, we can only guess you mean the Federal Tax Credit or some part thereof.


This is simply not true: The projected residual in the lease, 36 months, 10.5 miles per year is 55%. This is pretty much the industry standard which ranges from a low of 54% to as high as 61%. Clearly a 55% residual, which is on the extreme low end of industry standards for residuals, has not been supported by the Federal Tax credit of $7,500.

In future posts, it would be extremely helpful if you were specific in what you meant and giving numbers as examples to back your statements would be appreciated by all.

 

[malba2366]

They are not struggling with anything. They know that they will be dropping the price of the car by $7500 by the time this lease is over, and they are not at this time willing to eat that. Once the initial demand is gone, then things will change.

 

[macchiaz-o]

 

[Ponypower50]

No tax credit her in Illinois on a trade in. They just may charge you more. Illinois doesn't seem to like EV cars.

Sponsored