Advertisement



Why Ford Credit is abandoning Leasing for Mach E

kdryden99

Well-Known Member
First Name
Richard
Joined
Sep 25, 2020
Messages
465
Reaction score
383
Location
Montreal Canada
First Name
Richard
Vehicles
Nissan Sentra Spec-V, Nissan Rogue, Future Infinite Blue Mach E
Country flag

mattbostonmache

Well-Known Member
First Name
Matt
Joined
Jul 25, 2020
Messages
169
Reaction score
321
Location
Newton, MA
First Name
Matt
Vehicles
Rav4
Country flag
I need a lease explainer!! My head is spinning from reading all this. I'm completely lost.

Financing and Options I understand. But leases and money factor, residual, MSD, dealer markup of rates...it all makes my head spin 🤯
 

AndyS_OSU

Well-Known Member
Joined
Nov 26, 2019
Messages
136
Reaction score
88
Location
Texas
Vehicles
2017 Chevrolet BoltEV
Country flag
I will say again, my BoltEV Premier and my BMW i3 were both around $48k+ MSRP and my leases were less than $500. So staring at an $800 lease payment for the MME is disappointing.
 

macchiaz-o

Well-Known Member
First Name
Jonathan
Joined
Nov 25, 2019
Messages
2,087
Reaction score
3,892
Location
Valley of the Sun
First Name
Jonathan
Vehicles
Fiesta » InfB/LSG 2SR
Country flag
On the sister board the agreed upon term for the Ford Option Plan is a "deferred purchase plan."
I don't think an agreement was reached on that, yet.

If you run a search for "deferred purchase" at Mach-E Club, there are eighteen occurrences but all of them are from JTK44.
 

kdryden99

Well-Known Member
First Name
Richard
Joined
Sep 25, 2020
Messages
465
Reaction score
383
Location
Montreal Canada
First Name
Richard
Vehicles
Nissan Sentra Spec-V, Nissan Rogue, Future Infinite Blue Mach E
Country flag
I need a lease explainer!! My head is spinning from reading all this. I'm completely lost.

Financing and Options I understand. But leases and money factor, residual, MSD, dealer markup of rates...it all makes my head spin 🤯
Ill make it really simple. You pay a lease of 48 months. Normally this lease should be about 50% of the cars value. Sometimes you can put money down to lower your lease payments. At the end of the lease you give the car back with nothing in return. The dealer makes money off of the monthly interest you are paying in the lease and have a car they can resell with a small margin added because generally the value of the car is a bit less than market.

Ford is saying that since the car's value will be closer to 35% of the market after 4 years they dont want to take the loss once these leases end, so they jacked up the monthly payments for the lease to cover their rear ends. If the car is worth more than 35% after 4 years they can slap a huge margin on the car at the end of lease. Its a win-win for them and a loss for the client unless the client buys it back. Dont worry about the rest.
 
Last edited:



 









Advertisement


Top