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Why Ford Credit is abandoning Leasing for Mach E

JTK44

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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.
 

AndyS_OSU

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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.
 

hybrid2bev

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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
 

JTK44

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My reading between the lines inferred 57-58 for 10k and money factor at .002 (Uhg!!!)
Using MSRP of $54,700 plus destination of $1,100 total of $55,800 with residual of 58% and money factor of .002, (4.8%) that is a monthly payment of $827 before tax and with tax almost $900 a month.

That is almost $200 a month more than a Model Y.

see: https://www.leaseguide.com/mobcalc/#result

For a car with a MSRP of less than $60,000 a monthly payment with tax of almost $900 a month is a non starter.

By comparison I am presently leasing a 2018 Ford Edge Sport, MSRP $47,840, with everything in including NY State sales tax and acquisition fee, with ZERO down at leas signing, $407 a month, 36 months, 10.5K miles per year.

I can lease 2 Edge Sports for less than the price of one MME!

To me at least a MME at almost $900 a month makes no sense..
 

JTK44

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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.
Thanks as to "No" that the Federal Tax credits will not be put into the lease as a cap cost reduction.

When will the dealers have both the MF and residuals?

With production slated to begin 11/17 that means cars should be arriving at dealers by mid December - 2 1/2 weeks from now.

Not my business but why the "state secret" on both MF and residuals?
 

hybrid2bev

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Thanks as to "No" that the Federal Tax credits will not be put into the lease as a cap cost reduction.

When will the dealers have both the MF and residuals?

With production slated to begin 11/17 that means cars should be arriving at dealers by mid December - 2 1/2 weeks from now.

Not my business but why the "state secret" on both MF and residuals?
Dealers have the rates and residuals right now. The programs are currently set through January 4th. If the programs are updated before January then my guess would be around December 4th.

The ‘state secret’ short answer is that dealers are allowed to mark up the money factor rates.
 

AndyS_OSU

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Dealers have the rates and residuals right now. The programs are currently set through January 4th. If the programs are updated before January then my guess would be around December 4th.

The ‘state secret’ short answer is that dealers are allowed to mark up the money factor rates.
Slightly unfortunate that it’s the first model year. A lot of times you can find base money factors on Edmunds forums and use that to negotiate with dealers. As of yet no one has leaked that info.
 

malba2366

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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.
Are you able to reveal the interest rates on the Options program 36 month for tier 0/1 credit? The 5% posted on here seems very high, when anyone can get a (unsubdized) loan from a local bank at half that rate...

Also, can the options lease/loan be taken out and then paid off in full immediately? I ask because it looks like there is a $2500 incentive associated with the options lease.
 

JellyBelly

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Are you able to reveal the interest rates on the Options program 36 month for tier 0/1 credit? The 5% posted on here seems very high, when anyone can get a (unsubdized) loan from a local bank at half that rate...

Also, can the options lease/loan be taken out and then paid off in full immediately? I ask because it looks like there is a $2500 incentive associated with the options lease.
Options calculator shows 2.25% for my area last week
 

hybrid2bev

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Are you able to reveal the interest rates on the Options program 36 month for tier 0/1 credit? The 5% posted on here seems very high, when anyone can get a (unsubdized) loan from a local bank at half that rate...

Also, can the options lease/loan be taken out and then paid off in full immediately? I ask because it looks like there is a $2500 incentive associated with the options lease.
The Options rate on the Mach-E build and price website is accurate as of now.

@JTK44
I forgot about this post below.
Lease rates mixed with Options residuals.

https://www.macheforum.com/site/threads/ford-option-residuals-and-lease-terms-revealed.2045/
 

JTK44

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Dealers have the rates and residuals right now. The programs are currently set through January 4th. If the programs are updated before January then my guess would be around December 4th.

The ‘state secret’ short answer is that dealers are allowed to mark up the money factor rates.
MF: what is the rate set by Ford Credit before dealer markup?

Residuals are set by Ford.

What are the residuals for:

7,500 miles, 10,000 miles, 12,500 and 15,000 miles: 36 months and 48 months

Thanks.
 

macchiaz-o

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Are you able to reveal the interest rates on the Options program 36 month for tier 0/1 credit? The 5% posted on here seems very high, when anyone can get a (unsubdized) loan from a local bank at half that rate...

Also, can the options lease/loan be taken out and then paid off in full immediately? I ask because it looks like there is a $2500 incentive associated with the options lease.
Here in the Phoenix area I only see a $1000 incentive with Ford Options. If it were $2,500 or more, I'd probably consider Options as my option! ;)

I think @hybrid2bev has mentioned in many prior discussions that there's no prepayment penalty with Ford Options. But you'll need to read and consider the lending contract that your dealer presents to you.
 

JTK44

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Here in the Phoenix area I only see a $1000 incentive with Ford Options. If it were $2,500 or more, I'd probably consider Options as my option! ;)

I think @hybrid2bev has mentioned in many prior discussions that there's no prepayment penalty with Ford Options. But you'll need to read and consider the lending contract that your dealer presents to you.
As I have ordered the FF, it is no longer possible to pull up the financial calculator.

However for the premium: I am zip code 11050: Long Island, NY.

Ford Option plan:

  • Interest 2.5%
  • incentive $2,500 but with the following "take delivery from dealer's stock by 1/2/2021

No RCL is shown.
 



 









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