That’s what I thought too! This was a lease conversation so I was very confused as to why and how I would claim the tax rebate and not them
Maybe they were quoting you for Ford’s balloon financing? It is lease-like in some ways (similar to BMW owners choice) but you would be the car owner and would claim the tax rebate yourself. They’ve advertised this heavily for the Mach e. https://www.ford.com/finance/finance-options/ford-options
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Pretty sure he mentioned that if I do the balloon financing, they can apply the rebate to the payments. Maybe he was confused lol. Even with the 7.5k credit, that number seems ridiculous. Don’t you think?
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Well not always. Ford also does a balloon loan leasing in which you finance the car with a guaranteed balloon payment at the end of the term. That amount is guaranteed and you can always walk away.
You are able to claim Federal, State, and local incentives as you technically have purchased the car and it is registered in your name, and for all intensive legal determinations, is your car (with a lien).
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Hello! Do you broker deals in California? If yes, anything half decent for the Mach-E. Would love to use a broker to avoid all the hassle
Mach-e does fixed tesla pricing, so wysiwyg on ford website, unless dealer is marking up. X-plan saves a bit and there are a few dealers on mach-e forums offering 3% off. With ford options its lease structured like a purchase so you claim the 7500 off as a deduction.
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This is totally up to the finance company. They don’t have to pass along the credit. I don’t know what they are currently doing for the Mach-E but sounds like maybe not. Or that dealer is marking up over MSRP.
Couple of thousand due at signing due to taxes and fees + to get it to 599 exactly. MSRP of just under 52 and paying $599/mo.
Was advised to look into tax credit myself, and from the verbiage Ford links to at IRS, it does apply to leases, especially I think the way they structure these.
Will have CPA figure it all out. Love the car, and had thousands to play with after selling a leased XC40. Fullerton Ford was the one dealer who wasn’t trying to sell $3-4k over sticker locally, or ‘come on in to test drive’
NOTE: They didn’t mention Ford Options to me, so I got a bog standard lease, will ride it like a rented mule and turn it back, might want to ask about Ford Options.
The tax credit does not apply to leases.
Ford offers a balloon financing option with a pre-arranged buy back option that is similar to a lease, that allows for claiming the tax credit it, but it is not a lease.
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I also have read that the Ford Options program has a very low residual (low 40% range), driving the poor numbers on the “lease-like” deal.
If you factor in the 7500 tax reddit on the $814/mo, you are looking at approximately $600/mo, which is heavy for a mid-40k car.
Absolutely and that’s where my head was at too. That is a ridiculous amount to pay for a 44k MSRP. I’d rather lease an XC90 again or buy a used Tesla for that kinda money
I agree but the MSRP being low is what makes the vehicle super attractive. It’s a great buy/poor lease. You should be able to walk away at a better price than the residual at the end of 3 years.
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If they passthrough the federal credits and apy is low, it’s probably a fine to lease if itms only expensive due to an artificially low RV - except you’ll need to plan to sell the car at the end to a third-party
The only thing might be the lease acquisition fee isn’t worth the optionality if you’re going to buy it out in all cases - unless you’re in a state where you can sell it at the end without paying sales tax on that portion or Ford allows third-parry buyouts at the same price
Or if your state lets you do a trade-in and exempts that from the sales tax then you’ll probably just want to buy
With the lease, you don’t get to claim the federal tax credit, nor does Ford Credit pass it on in the form of lease cash. The residual is subvented higher however.
2021 Mustang Mach-E Select:
Ford Red Carpet Lease, 36/12K: 57% residual, 3.94% APR, $0 lease cash
Ford Options Balloon Financing, 36/12K: 43% residual, 2.25% APR, $2,500 bonus cash + $7,500 tax credit
If you have a tax liability of $7,500 or higher, Ford Options is the way to go, IMO. Plus, you can more easily leverage equity at the end. Ford does not allow third-party buyouts with leases, I believe.
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Couldn’t find one of these under $800/month for a extended battery AWD with $5k down. Absolutely bonkers
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Those are hard to find.
There just weren’t any extended battery vehicles in stock here. They went first. I got a standard range AWD at an MSRP / adj cap cost of just under 52k for $599/mo with $5k down.
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I had one dealer quote me nearly $1100 for one too. $10k markup lol
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Ok, that’s a good idea. I think I managed to get most of those that weren’t off the rails. Right now, it is looking to me like it is out of order now. Thought the system would correct for that, but we’ll see how it plays out.
I’m still curious to know the RV on your contract.
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RV $30,613.60 with total payments by end of lease $29,584.72. Gross cap cost of 52,792.50
Seems a little hefty even with fees (which I paid in the DAS)
Will figure it out with Fullerton, or just ride it out until lease end. It’s not like I planned on buying the thing, but it would’ve been a nice option.
So RV is 58%, but, yeah, your total payments don’t make any sense if $5k DAS and $599/mo for 35 more months. Do you know if the contract got funded yet?
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