Why Ford Credit is abandoning Leasing for Mach E

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There are plenty of public statements from Ford that there would not be RCL until the tax credits were gone

Ford's about face is due in no small part to VW's aggressive approach with the ID.4 along with dissatisfied dealers and the fact that Options is illegal in 3 states.
 

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There are plenty of public statements from Ford that there would not be RCL until the tax credits were gone

Ford's about face is due in no small part to VW's aggressive approach with the ID.4 along with dissatisfied dealers and the fact that Options is illegal in 3 states.
It's true that the original pre-COVID plan was to not offer RCL at launch. Like all things 2020, Ford has adapted and overcome obstacles to meet customer needs. That is what you are seeing here today with the RCL announcement, updating programs to better serve our customers.

The states that Options is available in is nothing new, Options has been around for quite awhile so that was known upfront.
 

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One thing 2020 has taught me, companies are adapting and learning on the fly. When my wife asked me about the price, incentives, leasing, etc. for our upcoming Mach-E purchase, I told her the same thing all year. It all depends on the economy, competition, etc. when the cars actually start to arrive. I haven't paid much attention to any of the threads on leasing vs options vs purchase or about incentives. It has been and will continue to change. I expect my car to arrive sometime in January or maybe early February. Maybe in December I will actually dig into the different options for completing the purchase.
 
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It's true that the original pre-COVID plan was to not offer RCL at launch. Like all things 2020, Ford has adapted and overcome obstacles to meet customer needs. That is what you are seeing here today with the RCL announcement, updating programs to better serve our customers.

The states that Options is available in is nothing new, Options has been around for quite awhile so that was known upfront.
Thank you. I think Ford landed on the correct approach. I appreciate the communication.
 

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It's true that the original pre-COVID plan was to not offer RCL at launch. Like all things 2020, Ford has adapted and overcome obstacles to meet customer needs. That is what you are seeing here today with the RCL announcement, updating programs to better serve our customers.

The states that Options is available in is nothing new, Options has been around for quite awhile so that was known upfront.
Are you sure?

Originally in order to pass the $7,500 credit on to the buyer Ford came up with the Option Plan.

That plan does not fly - it is nothing more than a deferred purchase plan.

The "inability" to pass on the $7,500 in a lease is entirely bogus.

Audi, Jaguar have leases, with decent residuals - not the bogus 40% - 44%, that pass on the the $7,500 credit as a cap cost reduction.

When I viewed the MME at my dealer on Thursday, the general manager said that as of yet he had no definitive financing numbers or lease numbers and would not get them from Ford until just before actual deliveries.
 

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Are you sure?

Originally in order to pass the $7,500 credit on to the buyer Ford came up with the Option Plan.

That plan does not fly - it is nothing more than a deferred purchase plan.

The "inability" to pass on the $7,500 in a lease is entirely bogus.

Audi, Jaguar have leases, with decent residuals - not the bogus 40% - 44%, that pass on the the $7,500 credit as a cap cost reduction.

When I viewed the MME at my dealer on Thursday, the general manager said that as of yet he had no definitive financing numbers or lease numbers and would not get them from Ford until just before actual deliveries.
Am I sure about what?

I work at Ford and attend the weekly Ford Options meeting, so I’m sure about what I type. If things change then they change. What I type is the best information that I have that is shareable.

I’ve looked at the official programs (rates and residuals) for lease and Options (normal retail too) that have been published on the FMC dealer site, the C&I grids are available too. Super easy to find the information. If the dealer chooses to look up the programs they could work out payment estimates based on what is there now.

Yes, the programs may change before deliveries start, but as of now they are listed as active through January 4th.

The lease residual percentages are in the 50s not 40s.
 
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Am I sure about what?

I work at Ford and attend the weekly Ford Options meeting, so I’m sure about what I type. If things change then they change. What I type is the best information that I have that is shareable.

I’ve looked at the official programs (rates and residuals) for lease and Options (normal retail too) that have been published on the FMC dealer site, the C&I grids are available too. Super easy to find the information. If the dealer chooses to look up the programs they could work out payment estimates based on what is there now.

Yes, the programs may change before deliveries start, but as of now they are listed as active through January 4th. If the dealer chooses to look up the programs they could work out payment estimates based on what is there now.

The lease residual percentages are in the 50s not 40s.
In the traditional lease, is the tax credit being applied as a cap cost reduction? If it is then a residual in the 50s will be very competitive. If the Tax credit goes to ford these things in the premium trim with awd/extended battery will lease out at over $800 a month...that not be at all competitive in the marketplace.
 

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In the traditional lease, is the tax credit being applied as a cap cost reduction? If it is then a residual in the 50s will be very competitive. If the Tax credit goes to ford these things in the premium trim with awd/extended battery will lease out at over $800 a month...that not be at all competitive in the marketplace.
No. The tax credits are being used to bring the residuals up from the 40s (like Ford Options without the tax credits) into the 50s.
 

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Am I sure about what?

I work at Ford and attend the weekly Ford Options meeting, so I’m sure about what I type. If things change then they change. What I type is the best information that I have that is shareable.

I’ve looked at the official programs (rates and residuals) for lease and Options (normal retail too) that have been published on the FMC dealer site, the C&I grids are available too. Super easy to find the information. If the dealer chooses to look up the programs they could work out payment estimates based on what is there now.

Yes, the programs may change before deliveries start, but as of now they are listed as active through January 4th.

The lease residual percentages are in the 50s not 40s.
In the RCL is there a cap cost reduction of $7,500 representing the Federal Tax Credit?

Do you know:

  • Residual for 10,000 miles 36 months;
  • MF
Thanks.
 

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In the RCL is there a cap cost reduction of $7,500 representing the Federal Tax Credit?

Do you know:

  • Residual for 10,000 miles 36 months;
  • MF
Thanks.
My reading between the lines inferred 57-58 for 10k and money factor at .002 (Uhg!!!)
 

malba2366

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My reading between the lines inferred 57-58 for 10k and money factor at .002 (Uhg!!!)
That may work for the initial roll out of preordered vehicles but they will quickly have to incentivize those leases. It is about $200 a month too high when they have to compete for sales.
 

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In the RCL is there a cap cost reduction of $7,500 representing the Federal Tax Credit?

Do you know:

  • Residual for 10,000 miles 36 months;
  • MF
Thanks.
There is not a cap cost reduction representation of the tax credits.

Yes, I know the money factors and residuals for the current programs, but they are confidential.
 

AndyS_OSU

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That may work for the initial roll out of preordered vehicles but they will quickly have to incentivize those leases. It is about $200 a month too high when they have to compete for sales.
I would be okay with the residuals if that money factor was closer to .001
 

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