Why Ford Credit is abandoning Leasing for Mach E

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A new thread to speculate on why Ford Credit has chosen to abandon leasing for the Mach E.

Reasons:

1) Ford Credit doesn’t know what they’re doing.

2) Can‘t think of any other valid reason.





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EVer

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Is the balloon option fundamentally much different from a lease?
 

janitorjim

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A new thread to speculate on why Ford Credit has chosen to abandon leasing for the Mach E.

Reasons:

1) Ford Credit is clueless and doesn’t know what they’re doing.

2) Can‘t think of any other valid reason.
don't believe there ever was a mention of lease for the mach e so really they couldn't have abandon it if they never had it
 
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FredT

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Options is essentially a lease but allows the owner to claim tax credits.
Lessee generally gets the tax credit form the manufacturer in the form of cap reduction.
 

timbop

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A new thread to speculate on why Ford Credit has chosen to abandon leasing for the Mach E.

Reasons:

1) Ford Credit is clueless and doesn’t know what they’re doing.

2) Can‘t think of any other valid reason.
You need to think harder
 

eltonlin

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It probably has something to do with the tax credit..they don't want to take the risk incase there is some governmental changes to the tax credits. I think Tesla only started leasing after they no longer had tax credits available.
my thoughts as well. No way the company will front you $7500 without any consideration of your tax situation. That and the credit is for individuals and not corporations.
 

hybrid2bev

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Are you sure the premise of this thread is correct? 99.9% of you don’t know what’s in the works behind the scenes so I ask you to withhold judgment for now.

The reason traditional leasing wasn’t part of the initial plan is so that customers could claim the tax credits (possibly take full advantage of them). Ford Credit is customer focused and wanted you to have the opportunity to take full advantage of the tax credits on your own. Then you could choose what to do with the refund.

On a lease Ford Credit is the owner, due to the complexity of corporate taxes the full $7500 credit would most likely not be passed on to the customer. Ford Credit has realized that customers could be concerned about the Options monthly payment being higher than a traditional lease and may be willing to take a trade off of lower tax credit application towards the residual value in exchange for lower monthly lease payments.

Customer deliveries should start in December, let’s see what happens between now and the January C&I programs.
 

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A new thread to speculate on why Ford Credit has chosen to abandon leasing for the Mach E.

Reasons:

1) Ford Credit is clueless and doesn’t know what they’re doing.

2) Can‘t think of any other valid reason.
Mainly because Options means that owners can actually take possession of the title which is much better for the tax credit. If or when the EV tax credit is phased out, I'd expect traditional leasing to make a comeback.

Lessee generally gets the tax credit form the manufacturer in the form of cap reduction.
But that's never the full value of the credit in a leasing scenario. You'll get more value from the credit by taking the title.

As has been discussed ad nauseum, one of Ford's greatest advantages right now is their relatively large remaining number of tax credits. Forgoing leases maximizes those credits for customers. Anyway I honestly think Options is close enough to a regular lease that I don't miss it, even before taking the credit into account.
 

ajmartineau

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Options allows FC to have a much lower residual. Less risk for FC.
 

timbop

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3) Ford found a way to benefit Ford at the expense of the consumer having options.
or this:
On a lease Ford Credit is the owner, due to the complexity of corporate taxes the full $7500 credit would most likely not be passed on to the customer.
Just to keep it simple why that is, let me point out that as an individual you have to earn enough money in the tax year to have a $7500 tax liability. Corporate P&L and tax law is far different than an individual filing a 1040.

But you're probably right - Ford just wants to screw its potential customers so they don't buy their cars.
 

timbop

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Options allows FC to have a much lower residual. Less risk for FC.
that too. Given their financial situation and the volatility if BEV resales, it is hard to blame them not wanting to eat a bunch of depreciation 3 to 4 years from now.
 

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