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Especially when the tax credits expire and there is little benefit to paying full tab and having to wait for a build and (opinion here) you have an FE which will not be available on the primary market

I was under the impression that other than the GT or performance GT, Ford was accepting reservations for both the Select and Premium. Does anybody know whether that is true or not and if true what is the anticipated delivery?

We know the FE were sold out - but what about the other models?

What is the actual demand? The demand will determine how easy or not, it will be to get out of the Option Plan.
 

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I thought at last count the reservations were around 100K or two years at 50K per
 

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Wow!

Then that would be like be Tesla: the wait for a Model 3 is 6 to 8 weeks. Used 2020 model 3's are being offered at the same price as brand new ones!
 

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To date the numbers are supposition since nothing is actually in the hands of dealers and customers. However, my main "like" on the Options is that it is the owned/titled to the customer and therefore said customer has what appears to be many options and a lot of flexibility based on individual wants and market conditions.
 

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All depends on the interest rate: if the APR is .9% then I will go with it. If it 5% I will buy it outright or pass.

Under no circumstances will I pay APR of 5%
 

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All depends on the interest rate: if the APR is .9% then I will go with it. If it 5% I will buy it outright or pass.

Under no circumstances will I pay APR of 5%
Yes, 5% is crazy-talk.
 

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For anyone on here that's put in their deposits, are you planning on leasing or financing your Mach-E? I feel like leasing would make the most sense since it's a brand new model and EV, but I've always financed my cars and I usually keep them for a long time. I'm curious to see what people's plans are.
I've placed my order and plan on purchasing. I had considered leasing for the same reasons you stated. I decided that I MAY buy an extended warranty although I never have. New vehicle, new technology maybe extended warranty.
 

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So now we have:

  • No incentive and 5% APR for the Ford Option Plan and financing for the First Edition and GT
  • .9% APR and $2,500 incentives for the Select, Premium and California
and PHID has just posted .9 APR and $1,000 credit.

These figures are all over the lot.

When I spoke to the Mustang help line at Ford, all they could tell me was to check with my dealer.

When I did that, my dealer told me they had no information and probably wouldn't until just before delivery of the first MachE.

Anyone counting of .9% APR and $2,500 incentives may be disappointed.

Anyone being discouraged by 5% APR may be pleasantly surprised.

I think we all have to just sit back and wait - at least that is what I plan to do.
 

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So now we have:

  • No incentive and 5% APR for the Ford Option Plan and financing for the First Edition and GT
  • .9% APR and $2,500 incentives for the Select, Premium and California
and PHID has just posted .9 APR and $1,000 credit.

These figures are all over the lot.

When I spoke to the Mustang help line at Ford, all they could tell me was to check with my dealer.

When I did that, my dealer told me they had no information and probably wouldn't until just before delivery of the first MachE.

Anyone counting of .9% APR and $2,500 incentives may be disappointed.

Anyone being discouraged by 5% APR may be pleasantly surprised.

I think we all have to just sit back and wait - at least that is what I plan to do.
Ford is not confirming financing or leasing rates or incentives 5 months in front of actual delivery / purchase dates. Anything out there right now is speculative at best. We'll have to wait until delivery time to get final numbers.
 

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The 0.9% and $2500 cash back available in the online calculator today ARE IRRELEVANT. If you look at the description it clearly refers to taking delivery by July 6th 2020 from dealer stock. I very much suspect the 5% is also bogus - they are just placeholder numbers for now and will absolutely change in the Fall when you actually start arranging financing with dealers. The Ford finance guy who posts on the mach e forum (hybrid2bev) has said so over and over. A reasonable rate would be 3% or lower (Tesla's is currently 2.49%), so let's give them the benefit of the doubt of being reasonable until they prove otherwise.

1785
 

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I agree 100% with TimBop: we will have to wait until actual deliveries to see what the MF (APR) and balloon are for the "Option Plan" and APF for financing.


Tesla: the current money factor for a Tesla model S lease is .002208 which is 5.3%. I have it in writing as I have been communicating with Tesla. Do not know the APR for financing.

Model 3: The lease is not really a lease as there is no option to buy at the end.

Model Y: presently no option to lease

BTW, the residual for the Model S, 3 years 10,000 miles per year is 58%.

The balloon under the Ford Option Plan for 3 years, 10,500 presently is 44%. Hopefully that will increase once we get closer to delivery.
 

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I agree 100% with TimBop: we will have to wait until actual deliveries to see what the MF (APR) and balloon are for the "Option Plan" and APF for financing.


Tesla: the current money factor for a Tesla model S lease is .002208 which is 5.3%. I have it in writing as I have been communicating with Tesla. Do not know the APR for financing.

Model 3: The lease is not really a lease as there is no option to buy at the end.

Model Y: presently no option to lease

BTW, the residual for the Model S, 3 years 10,000 miles per year is 58%.

The balloon under the Ford Option Plan for 3 years, 10,500 presently is 44%. Hopefully that will increase once we get closer to delivery.
Crap, I had the 2.49% in my head from the financing tab instead of the lease tab. So I've no idea the residual or rate for Tesla. mea culpa
 

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No problem:

When I spoke to the Tesla representative and mentioned the MF at 5.3% she said "very few actually lease a Tesla and of those that do even fewer at the end of the lease buy the car at the residual. Most just buy the car and because of its high resale value, if they want, they just sell it".

This is a bit of double speak:

  • Yes: very few would lease because the MF is 5.3%
  • 58% is not a particularly high residual. My E450 has a 60% residual. If the car was worth more than 58%, i.e., there was equity left in the car at lease end - than lessee would buy it. I suspect that the Model S is worth less than 58% and that is why few buy at the end of the lease.
So if you buy, after three years you are looking at resale value of less than 58%. That is quite a bit of depreciation in dollar terms on a $76,000 car. To protect yourself against a residual of less than 58% you can lease, but then you paying interest at 5.3%.

The bottom line is that Teslas are very expensive.

Let's hope the MachE makes more sense!


.
 

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Crap, I had the 2.49% in my head from the financing tab instead of the lease tab. So I've no idea the residual or rate for Tesla. mea culpa

I just went to the Tesla lease calculator:

see: Tesla Leasing Calculator | Tesla Support

For point of reference:

  • Model 3 AWD extended range MSRP, including destination: $48,190
  • At 36 months, 10,000 miles per year the monthly payment with zero down is $607 plus applicable sales tax.
A this time the Model 3 cannot be purchased at the end of the lease so no residual value is available from Tesla.

However, if we use a standard lease calculator, and we assume the same MF for the Model 3 as for the Model S, .002208 , 5.3%, we can "back into" the residual: this would come out to $32,800.

see: Auto Lease Calculator – Best car lease payment calculator

$32,800 is residual of 68%. This is extremely high and what is called a "factory supported residual".

Strictly from a financial point of view, it would be far more efficient to lease a model 3 than buy it, even with the 5.3% MF.

Using the same MF and percentage residual for the long range AWD Model Y, we come up with monthly payment of $683 per month.

That monthly payment of under $700 a month is the competition for my First Edition.


.
 

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I just went to the Tesla lease calculator:

see: Tesla Leasing Calculator | Tesla Support

For point of reference:

  • Model 3 AWD extended range MSRP, including destination: $48,190
  • At 36 months, 10,000 miles per year the monthly payment with zero down is $607 plus applicable sales tax.
A this time the Model 3 cannot be purchased at the end of the lease so no residual value is available from Tesla.

However, if we use a standard lease calculator, and we assume the same MF for the Model 3 as for the Model S, .002208 , 5.3%, we can "back into" the residual: this would come out to $32,800.

see: Auto Lease Calculator – Best car lease payment calculator

$32,800 is residual of 68%. This is extremely high and what is called a "factory supported residual".

Strictly from a financial point of view, it would be far more efficient to lease a model 3 than buy it, even with the 5.3% MF.

Using the same MF and percentage residual for the long range AWD Model Y, we come up with monthly payment of $683 per month.

That monthly payment of under $700 a month is the competition for my First Edition.
Let me throw in another variable for thought.

The whole argument we are having here is based on the assumption that the balloon payment size is equal to the residual of a lease.

When, in fact, we may be wrong.

Since Ford Options is a purchase-and-return and not a lease, the balloon payment is more akin to the dealer trade-in value, which is much lower than the actual residual (book) value.

Assuming a very conservative 25% trade-in markdown on the true residual value, the residual value in this example is 56%, not 45%.
the residual gets better if you consider the trade-in markdowns higher than 25%.

Interesting view, no?
 

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Based on your thoughts, I remember when I turned in my leased Audi S5. I said to the dealer that they were getting a pristine car with extremely low mileage and they would make a good profit. What the dealer said didn't register at the time " It will all depend on whether Audi gives us a good price" So now I'm thinking the residual price to the lessee is higher than what the dealer pays which would be in line with your points on balloon payment vs residual value on a lease. It only makes sense to me that the final payment to the dealer would be wholesale trade in which would give the dealer their usual markup if you turn it in. Nice catch I think that may have nailed it.
 

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So, 56 posts and you guys have not got this figured out yet! I'm just going to buy the damn thing and hope that in 4 yrs, when I have it paid for, I will still like it enough to keep it and then will have no more payments for awhile.
I guess that we now should list this as an option.:unsure:
 
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