I was poking around on the Mustang Mach-E configurator and noticed in the finance section that the two choices were basically finance to purchase, or “Ford Options Plan” wherein you enter a miles/year, term (in months), and a down payment (if any). At the end of the term you can buy for a set residual price, or turn in the car and walk away. IOW, a lease.
I set the CCR to zero but the monthly payments were ridiculous. I didn’t run the numbers through the hackr calculator, but the site claimed a 2.5% APR. The residual seemed very low…$24k or so on a $55k MSRP after 3 years, so I guess that’s the issue.
Not sure why Ford isn’t just calling it “leasing” though. Any thoughts?
Thanks. (Oops). Crazy that they’re not giving you the $7500 credit on that. So, like a lease in that the balloon payment is optional - you can just turn it in at the end. But not like a lease in that you don’t get the federal tax credit.
Really sucks because I’d love to give the Mach-E a try but am (mostly) a lease person.
It’s ok…give them time to fill out some initial orders then they will come to their sense when they realize they can’t move the cars for that ridiculous “lease” offer.
I was just chatting with dealer they offer the Red Carpet Lease which is a regular lease program that credits back the 7500k as a manufacturer rebate. Not sure if the terms are different from the ford options though.
You can build and price a Mach-E on Ford’s website and estimate your monthly payment using Ford Options. The programs vary by zip code.
Here in Southern California, the rate for Ford Options is 2.25% APR. There’s $2,500 in Ford Options Retail Bonus Cash (through 1/4/2021) that effectively negates the interest paid. No acquisition fee with Ford Options.
Not a bad option to go if you have $7,500 in federal tax liability. At the end of Ford Options, you can return the car, sell it, or buy it out at the balloon payment price. Ford is being conservative with the residual, IMO.
It’s $449/month pre-tax for a base Mach-E Select with $9,000 down. There’s $7,500 federal tax credit and $1,500 utility CFR, so effectively $0 down. Not too shabby.
Honestly most of the people I know that are Ford fans buy the vehicles. I have friends and family members that are die hard only Ford till they die and most of them buy and some pay cash for what’s left over after they trade the old one in. Ford doesn’t seem to ever need to throw money at anything other then the current fusion blow out. Great dividend stock to add to your portfolio as well.
Maybe I’m missing something, but are you saying that if you go with Ford Options you do get the $7500 federal tax credit, but have to file for it yourself as if you’re doing a regular purchase?
Yes, as it is a balloon loan, their name Ford options. You must have the 7500 in tax liability to use this to the full extent (although if you have less than 7500 you’re either a crafty businessperson or probably don’t have the income to support a 450/month payment).
I have known a number of those, unfortunately I am not one of them, LOL. Standard W2 chump here🤪
My favorite line from one of them was…“on paper I could qualify for food stamps”…With a net worth that had 8 digits in it. I’m not sure if that signifies business acumen, or flexible morals…likely some combination of both.
The rules are presented and some can make then work in their favor…i see no problem here. If one wants to “fix” things than change the rules. The tax las in US are written and sponsored by businesses so what you expect?
Please forgive my ignorance, but what’s a utility CFR? Also, for the $7,500 and $1,500, are you able to take that off the top when purchasing or lease, or do those rebates come in on the back end when filing taxes?
