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Without knowing the interest rate or the residual you cannot determine either: Both determine the month payment.

Without knowing the residual you cannot determine how much the residual is decreased for every 2,500 miles.

But you do not need this: When you go to place your order under "payment" it opens up and you can calculate Ford Option and finance.

BTW, the Finance option is calculated at 5%. This seems very, very high.

I am going to use X-Plan which presently for the First Edition is 2% off of MSRP plus $275 administrative fee, savings of about $900. That will reduce the monthly payment by about $27 a month.

I have seen posted $2500 incentive, but have no confirmation that it will be available on the MachE.

NJ may waive the sales tax: is there a cap on the MSRP?

NY gives a $2,000 tax credit.

If in fact the residual is 45% after 3 years, 10,500 miles per year that is absolutely terrible: On a Ford Edge it is 55%. On a Mercedes 59%. A residual of 45%, if accurate, tells me Ford knows that these cars are way overpriced.

If that is the case, I am going to pass: I am not that much in "Love" with the Mustang to see it depreciate from $60,800 to $27,360 (45%) in three years!
 

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Without knowing the interest rate or the residual you cannot determine either: Both determine the month payment.

Without knowing the residual you cannot determine how much the residual is decreased for every 2,500 miles.

But you do not need this: When you go to place your order under "payment" it opens up and you can calculate Ford Option and finance.

BTW, the Finance option is calculated at 5%. This seems very, very high.

I am going to use X-Plan which presently for the First Edition is 2% off of MSRP plus $275 administrative fee, savings of about $900. That will reduce the monthly payment by about $27 a month.

I have seen posted $2500 incentive, but have no confirmation that it will be available on the MachE.

NJ may waive the sales tax: is there a cap on the MSRP?

NY gives a $2,000 tax credit.

If in fact the residual is 45% after 3 years, 10,500 miles per year that is absolutely terrible: On a Ford Edge it is 55%. On a Mercedes 59%. A residual of 45%, if accurate, tells me Ford knows that these cars are way overpriced.

If that is the case, I am going to pass: I am not that much in "Love" with the Mustang to see it depreciate from $60,800 to $27,360 (45%) in three years!
No cap for NJ sales tax exemption. @7% for 60k = $4,200 saved.

There is a cap on the NJ $5,000 sales rebate (direct rebate, not an income tax credit). Final MSRP cap on this one is $55,000.

There is also a rebate of $500 towards the purchase and installation of a home charger (no sales tax when purchased and installed either)

My hopes is that the residual will be higher than expected, but that would be gravy. This is a discretionary expense after all- It is what it is.
 

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Without knowing the interest rate or the residual you cannot determine either: Both determine the month payment.

Without knowing the residual you cannot determine how much the residual is decreased for every 2,500 miles.

But you do not need this: When you go to place your order under "payment" it opens up and you can calculate Ford Option and finance.

BTW, the Finance option is calculated at 5%. This seems very, very high.

I am going to use X-Plan which presently for the First Edition is 2% off of MSRP plus $275 administrative fee, savings of about $900. That will reduce the monthly payment by about $27 a month.

I have seen posted $2500 incentive, but have no confirmation that it will be available on the MachE.

NJ may waive the sales tax: is there a cap on the MSRP?

NY gives a $2,000 tax credit.

If in fact the residual is 45% after 3 years, 10,500 miles per year that is absolutely terrible: On a Ford Edge it is 55%. On a Mercedes 59%. A residual of 45%, if accurate, tells me Ford knows that these cars are way overpriced.

If that is the case, I am going to pass: I am not that much in "Love" with the Mustang to see it depreciate from $60,800 to $27,360 (45%) in three years!
Remember a big chunk of the difference in the residuals is the fact that new BEVs are eligible for various tax rebates from $7500-$11,000 and used are not. This doesn't apply to ICE vehicles.
 

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Remember a big chunk of the difference in the residuals is the fact that new BEVs are eligible for various tax rebates from $7500-$11,000 and used are not. This doesn't apply to ICE vehicles.
In my post I calculated both the Fed and State tax rebates and from that deducted the NY sales tax which resulted in a net credit of $4256 which when added in as a deposit reduced the monthly payment from $1162 to $1031, a net savings of $4,716.


Just an FYI - In NJ, sales tax is waived on electric vehicles. I don’t know if NY has a similar program.
A bill was introduced in New York, but it was not passed. So far all New York has is the $2,000 credit.

The actual interest rate is 5.95% and the residual for 36 months, 7,500 miles per year is 44%: for 10,500 miles 43%.


Just an FYI - In NJ, sales tax is waived on electric vehicles. I don’t know if NY has a similar program.
Based on the payment estimator for a 60k MSRP, i have compiled the following:
  • current interest rate is 0.9, plus $2,500 incentive for using the Ford Options plan (if qualified).
  • the residual is ~45% on 36 mo 10.5k mi/mo, and ~30% on 48 mo. 10.5k mi/mo
  • going to 12k miles per year reduces residual by ~1%. Its an additional ~1% for 15k miles per year. (Monthly payments increase , of course)
Ford does not offer a lease on this vehicle, only this Options program. I do not know if third-party lease companies would have comparable residuals.
The problem with a lease is that the owner, not the lesee gets the Federal and State tax credit.

With such a small volume, 20,000 cars, and Ford already setting the residual so low, I doubt if any lease company will bother to get involved: just too complicated.

As of the present time Tesla does not offer a lease program on the Model Y. That may change and if it does it will be interesting to see how those numbers stack up against the Mustang.

One final point: In some of my original posts I wondered if Ford would be able to sustain a $60,000 plus MSRP for a Ford branded vehicle. It looks like the answer to that, based on the balloon payments is a resounding "NO".

On the other hand Tesla's do hold their value: It may turn out that the Model Y, which over 3 year retains more than 60% of its value, may be far cheaper than the Mustang.

Again for me this is third car, a luxury. When the time comes to decide I will compare the cost of the Model Y with the Mustang and then decide what to do.
 

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Just an FYI - In NJ, sales tax is waived on electric vehicles. I don’t know if NY has a similar program.
Based on the payment estimator for a 60k MSRP, i have compiled the following:
  • current interest rate is 0.9, plus $2,500 incentive for using the Ford Options plan (if qualified).
  • the residual is ~45% on 36 mo 10.5k mi/mo, and ~30% on 48 mo. 10.5k mi/mo
  • going to 12k miles per year reduces residual by ~1%. Its an additional ~1% for 15k miles per year. (Monthly payments increase , of course)
Ford does not offer a lease on this vehicle, only this Options program. I do not know if third-party lease companies would have comparable residuals.
Based on your numbers, the Options plan is lookin better. The 45% on the 36 month is a tad greater than I can recall on prior "leases" which on the 2018 Energi was around 55-57% but that was after 24 months. The 45 % balloon works out to 18.33% annual depreciation. However, it still appears to be a viable option. Thanks for the numbers
 

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Actually the more I think about it, the Ford Option is nothing more than a deferred purchase plan at a high rate of interest.

In 99% of all leases, the lease is upside down: the residual is higher than the value of the car. So at the end of the lease you turn in the car.

Most 36 month leases, 10,000 miles per year have residuals between 53% and 62%.

When a residual, in our case the balloon, at 43% for 3 years, 10,500 miles per year, is very low low two things happen:

  • The lease payment, relative to other cars similarly priced, is very high
  • Because you have equity in the car, i.e., because the lease payments are high they have a high depreciation component, unless you want to walk away from the equity in the car, you wind up buying the car
So for three years you are paying 5.95% and then at the end of three years you wind up buying the car by paying the balloon.

Better to just buy the car outright and not pay 5.95% interest!

There is another possibility and that is the MachE after three years will in fact be worth 43% or less: is this is the case, I have no intention of every buying, leasing or owning a car that losses over 55% of its value in 3 years.

The Model Y after three years is worth between 62% and 65%.

Just my $.02



.
 

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No cap for NJ sales tax exemption. @7% for 60k = $4,200 saved.

There is a cap on the NJ $5,000 sales rebate (direct rebate, not an income tax credit). Final MSRP cap on this one is $55,000.

There is also a rebate of $500 towards the purchase and installation of a home charger (no sales tax when purchased and installed either)

My hopes is that the residual will be higher than expected, but that would be gravy. This is a discretionary expense after all- It is what it is.

Sales tax exemption: will work for both Tesla Model Y or MachE.

$5,000 sales rebate: this will work with the Model Y but will it work with the MachE?

$500 rebate: works with both
 

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Sales tax exemption: will work for both Tesla Model Y or MachE.

$5,000 sales rebate: this will work with the Model Y but will it work with the MachE?

$500 rebate: works with both
Will work on any Mach E configuration under 55K, so Select config, RT1 config, Premium with STD battery.
Premium with ER batteries, GT, and FE, the MSRP is too high.
 

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Actually the more I think about it, the Ford Option is nothing more than a deferred purchase plan at a high rate of interest.

In 99% of all leases, the lease is upside down: the residual is higher than the value of the car. So at the end of the lease you turn in the car.

Most 36 month leases, 10,000 miles per year have residuals between 53% and 62%.

When a residual, in our case the balloon, at 43% for 3 years, 10,500 miles per year, is very low low two things happen:

  • The lease payment, relative to other cars similarly priced, is very high
  • Because you have equity in the car, i.e., because the lease payments are high they have a high depreciation component, unless you want to walk away from the equity in the car, you wind up buying the car
So for three years you are paying 5.95% and then at the end of three years you wind up buying the car by paying the balloon.

Better to just buy the car outright and not pay 5.95% interest!

There is another possibility and that is the MachE after three years will in fact be worth 43% or less: is this is the case, I have no intention of every buying, leasing or owning a car that losses over 55% of its value in 3 years.

The Model Y after three years is worth between 62% and 65%.

Just my $.02.
Where are you seeing that high interest rate on the Options plan. Its shows me 0.9% interest.

Copied from estimator:

Ford Options Plan
Monthly Payment

$699.32/mo****
APR 0.90%

FORD OPTIONS PLAN PRICING SUMMARY
  • Estimated Base MSRP
    $50,000^^
  • Total Options
    $8,340˜˜˜
  • Destination and Delivery Charges
    $1,100˜˜
  • Total Base MSRP (including optional equipment and D&D)
    $59,440††††
  • Difference from MSRP
    0ˆˆˆˆ
  • Dealer Selling Price
    $59,440˜˜˜˜
  • Total Available Incentives
    -$2,500ˆ
    • APR Financing Program #21114: Not all buyers will qualify. Ford Credit limited-term APR financing. Take new retail delivery from dealer stock by 07/06/2020. See dealer for qualifications and complete details.
      0.9%
    • Ford Options Retail Bonus Cash Program #13770: $2,500.00 Ford Credit Bonus cash requires Ford Credit financing. Not all buyers will qualify. Take new retail delivery from dealer stock by 07/06/2020. See dealer for complete details.
      -$2,500
  • Down Payment
    $5,834*****
  • Deposit to Dealer
    $1,500ˆˆˆ
  • Total Estimated Amount Financed
    $49,606†
  • Estimated Monthly Payment
    $699.32/MO†††
  • Term (In Months)
    36^^^^^
  • Annual Miles
    10500^
  • Estimated Final Payment to Own (Balloon Payment). See Disclaimer for more information.
    $26,153.60
 

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Two ways:

First from my payment calculator for Ford.com: it says 5% not .9%


Finance

Ford Options Plan

Cash

Term (in Months)
‡‡
36

4836
Annual Miles
10,500

19,50018,00016,50015,00013,50012,00010,5007,500
Down Payments
Save & Close
ESTIMATED PRICING SUMMARY
Estimated Monthly Payment $1,162.62 /Mo
65


5% APR FOR 36 MONTHS
76
Estimated Total Amount Financed $60,300.00
††††
Estimated Base MSRP
˜˜˜˜
$59,300.00

Total Options
72
$400.00

Destination and Delivery Charges
***
$1,100.00

Total Estimated MSRP
71
$60,800.00

Difference from Total MSRP
†††
--

Dealer Selling Price
66
$60,800.00

Down Payment
ˆˆˆ
--

Dealer Deposit
ˆˆ
$500.00

Estimated Amount Financed
††††
$60,300.00

Annual Miles

10,500

Estimated Final Payment to Own (Balloon Payment). See Disclaimer for more information.
ˆˆˆˆ
$26,144.00



Second if you use a lease calculator, link below, and put in the numbers:

To get to the lease payment of $1,162 for 36 months, price of $60,300, balloon payment (residual) of $26,144, 36 months will give you a percentage of 5.95%.

see: Auto Lease Calculator: Calculate Your Car Lease Payment - Good Calculators

I have nothing like you have: there is no $2500 incentive either.

What I did was:

  • Go to Ford.com
  • Sign in
  • View reservations and order
  • View and place order
  • see monthly payment
There will then be three options:

  • Finance
  • Ford Option Plan
  • Cash
Where did you go to get your Ford Option Plan?

The Ford Option Plan may be totally different for the MachE.

Let us know
 

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I am not that much in "Love" with the Mustang to see it depreciate from $60,800 to $27,360 (45%) in three years!
Isn't the effective residual better than that? For my Select, with the federal and NY tax incentives, the effective purchase price is ~$49K.

Isn't it closer to 55%? Still not great.
 

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Balloons or residuals are always based off of MSRP before any rebates or credits. That is standard in the industry.

For example: the MSRP is 50,000 and the residual is 60%, $30,000.

Now you negotiate the price to $45,000. The depreciation component of your lease is the difference between the negotiated price, $45,000 and $30,000, $15,000..

If you took the residual off of the negotiated price, $45,000 the residual would be $27,000 the difference you would owe would be $17,000.

Remember the Federal Tax credit is only temporary, albeit for a few years and every state is not like NY were we get a $2000 tax credit.

Unless the calculator I am using is wrong, and the calculator MachDrive is using is correct, the Ford Option plan with the very low balloon, does not give you the economic benefits of a lease.

Hope this clarifies.
 

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Where are you seeing that high interest rate on the Options plan. Its shows me 0.9% interest.

Copied from estimator:

Ford Options Plan
Monthly Payment

$699.32/mo****
APR 0.90%

FORD OPTIONS PLAN PRICING SUMMARY
  • Estimated Base MSRP
    $50,000^^
  • Total Options
    $8,340˜˜˜
  • Destination and Delivery Charges
    $1,100˜˜
  • Total Base MSRP (including optional equipment and D&D)
    $59,440††††
  • Difference from MSRP
    0ˆˆˆˆ
  • Dealer Selling Price
    $59,440˜˜˜˜
  • Total Available Incentives
    -$2,500ˆ
    • APR Financing Program #21114: Not all buyers will qualify. Ford Credit limited-term APR financing. Take new retail delivery from dealer stock by 07/06/2020. See dealer for qualifications and complete details.
      0.9%
    • Ford Options Retail Bonus Cash Program #13770: $2,500.00 Ford Credit Bonus cash requires Ford Credit financing. Not all buyers will qualify. Take new retail delivery from dealer stock by 07/06/2020. See dealer for complete details.
      -$2,500
  • Down Payment
    $5,834*****
  • Deposit to Dealer
    $1,500ˆˆˆ
  • Total Estimated Amount Financed
    $49,606†
  • Estimated Monthly Payment
    $699.32/MO†††
  • Term (In Months)
    36^^^^^
  • Annual Miles
    10500^
  • Estimated Final Payment to Own (Balloon Payment). See Disclaimer for more information.
    $26,153.60
MachDrive:

Can you post a link to the estimator you used.

I cannot find it.

Thanks
 

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MachDrive:

Can you post a link to the estimator you used.

I cannot find it.

Thanks
I went into the mach-e page and tapped ‘order now’ and selected a dealer, and built a configuration for a premium with all the options, then i tapped on the estimator (where there is the calculator icon, see image) to change the options.
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I did the same as you have posted: the APR is .9% and there is a $2500 incentive.

Just before I actually placed my order there was a blue box "financial calculator":

  • The APR was 5%
  • There was not any incentive - nothing about $2500
  • The balloon was 1% lower
I do not know which one is correct

Are you able to go back to your order and find the financial calculator for your order? Mine is no longer there.
 

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I did the same as you have posted: the APR is .9% and there is a $2500 incentive.

Just before I actually placed my order there was a blue box "financial calculator":

  • The APR was 5%
  • There was not any incentive - nothing about $2500
  • The balloon was 1% lower
I do not know which one is correct

Are you able to go back to your order and find the financial calculator for your order? Mine is no longer there.
I really wouldn't get wound up about it - it was likely just a snafu on the web page. What matters is what the real rates are when we get closer to delivery anyway.
 

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Some new incentives might be on the way from Ford to help convert reservations to orders.

 

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VW has now officially introduced the ID.4.

Fully equipped with every option the AWD version has a MSRP of $49,675.

With a down payment of $2,340, with the $7,500 used as a cap cost reduction, the monthly payments for three years, 10,000 miles per year are $540 per month.

From the VW web site:

"$540/mo for 36 month lease. $3,579 due at signing. Excludes tax, title, license, options and dealer fees. No security deposit required. For highly qualified customers through Volkswagen Credit. Closed end lease financing available for a new, unused 2021 ID.4 AWD Pro with Gradient Package, on approved credit to highly qualified customers by Volkswagen Credit through participating dealers. Monthly lease payment based on MSRP of $49,675 and destination charges less a $7,500 Lease Incentive and suggested dealer contribution resulting in a capitalized cost of $40,973.90. Excludes tax, title, license, options, and dealer fees. Amount due at signing includes first month’s payment, customer down payment of $2,340, and acquisition fee of $699. Monthly payments total $19,440.15. Your payment will vary based on final negotiated price. At lease end, lessee responsible for disposition fee of $395, $0.20/mile over 30,000 miles and excessive wear and use. Offer not valid in Puerto Rico. See your Volkswagen dealer for details or, for general product information, call 1-800-Drive-VW. Offer is subject to change or terminate without notice. "

see: Check out the Volkswagen I just built on vw.com!
 

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VW has now officially introduced the ID.4.

Fully equipped with every option the AWD version has a MSRP of $49,675.

With a down payment of $2,340, with the $7,500 used as a cap cost reduction, the monthly payments for three years, 10,000 miles per year are $540 per month.

From the VW web site:

"$540/mo for 36 month lease. $3,579 due at signing. Excludes tax, title, license, options and dealer fees. No security deposit required. For highly qualified customers through Volkswagen Credit. Closed end lease financing available for a new, unused 2021 ID.4 AWD Pro with Gradient Package, on approved credit to highly qualified customers by Volkswagen Credit through participating dealers. Monthly lease payment based on MSRP of $49,675 and destination charges less a $7,500 Lease Incentive and suggested dealer contribution resulting in a capitalized cost of $40,973.90. Excludes tax, title, license, options, and dealer fees. Amount due at signing includes first month’s payment, customer down payment of $2,340, and acquisition fee of $699. Monthly payments total $19,440.15. Your payment will vary based on final negotiated price. At lease end, lessee responsible for disposition fee of $395, $0.20/mile over 30,000 miles and excessive wear and use. Offer not valid in Puerto Rico. See your Volkswagen dealer for details or, for general product information, call 1-800-Drive-VW. Offer is subject to change or terminate without notice. "

see: Check out the Volkswagen I just built on vw.com!
As stated in the ID.4 thread, this lease looks like a 41% residual. Thats worse than the Mach-E Options.
540*36=19,440+7,500 credit used for cap red +2340 down = 29,280 total non-fee payments.
MSRP $49,675 - 29,280 =$20,395 (41%) (assuming 0% lease interest rate, residual may be higher based on interest rate)

ID.4 is a nice car, but lease not so good. Its either a poor residual, or a high interest rate. VW could do better.
 

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This was a huge surprise, I was on the Ford.com site Mustang Mach E financing and found this:
*See dealer for complete Ford Options program details. Ford Options is not available in Nevada, New Hampshire, North Carolina or Washington, D.C.
I wonder what will be available in Nevada? I would guess it would be a standard 'Red Carpet' lease unless they plan on forcing a purchase only plan in these locations
 
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