Why Ford Credit is abandoning Leasing for Mach E

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..





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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.
 

hybrid2bev

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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.
Yes when money factors are published in the C&I grids those are the net dealer buy rates.

Residuals are set by a super awesome team at Ford Credit (who owns the vehicle in the case of a lease) in cooperation with Ford.
 

eltonlin

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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.
I have been enlightened by @hybrid2bev and now “get it” as it pertains the Options.

Options is a simple balloon loan, so while it looks like a lease, fundamentally it’s just a different type of loan. And given that you should have all the options available to you as a regular loan, such as prepaying in full (whether it’s the monthlies, or the entire loan).
 

malba2366

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Yes when money factors are published in the C&I grids those are the net dealer buy rates.

Residuals are set by a super awesome team at Ford Credit (who owns the vehicle in the case of a lease) in cooperation with Ford.
Why is it that the lease buy rates are somewhat secretive while the finance buy rates are openly published...the dealer can mark up either rate.
 

JTK44

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I have been enlightened by @hybrid2bev and now “get it” as it pertains the Options.

Options is a simple balloon loan, so while it looks like a lease, fundamentally it’s just a different type of loan. And given that you should have all the options available to you as a regular loan, such as prepaying in full (whether it’s the monthlies, or the entire loan).
You are correct: it is a loan.

On the sister board the agreed upon term for the Ford Option Plan is a "deferred purchase plan."

It is a straight financing deal, at not a particularly attractive interest rate with a balloon at the end.

The only "twist" is that you can walk away from the balloon.

But it is not a lease: the title is in your name, and you pay sales tax on the full purchase price unlike in all but six states, where when you lease the sales tax is on the sum of monthly payments plus any cap cost deductions.
 

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The only "twist" is that you can walk away from the balloon.
Which is why in substance it's a lease. You pay a monthly fee for a set number of miles based on the difference between the purchase price and the residual. After making periodic payments you can walk or make a payment and keep the vehicle. So how is this fundamentally different from a lease?

If it looks like a duck, swims like a duck, flys like a duck, and quacks like a duck, maybe it is a duck.
 

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