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Discussion Starter #1 (Edited)
Instead of a normal lease, for the Mustang Ford has come up with the "Ford Option Plan":

From the information when I place my order, he is what I have been able to discern:

Unlike a regular lease where the title remains in the finance company the Ford Option Plan will place the title in the buyer's name so that the Federal Tax and State Tax credits, if any, will go to the owner.

The Ford Option Plan will require monthly payments for either 36 months or 48 months and you will have the option to choose mileage between 7,500 to 19,500 per year. At the end of term, you will have the option to either return the car or make a one-time balloon payment.

For those of you familiar with leasing, the balloon is similar to the residual.

Now let's get down to what is important the monthly payments:

By way of comparison, I am presently leasing a 2019 Mercedes E450 with a MSRP of $73,000. My lease is for 36 months, 10,000 miles per year. The residual is irrelevant as in almost 99% of leases the lease is "upside down" in that the residual is substantially higher than the value of the car. In other words, if the residual is $45,000 the car at the end of the lease will be worth only $38,000. At the end of the lease I intend to return the car.

My lease payments include NY State Tax, acquisition fee all rolled into the lease. It also includes all service for the first 30,000 miles. All I pay in addition to the lease payments are gas. At lease inception all I paid was the first month's payment and NY State motor vehicle documentation fee, $168. The monthly lease payment is $896.

I am also leasing a 2018 Ford Edge Sport, MSRP $47,785. The lease is 36 months, 10,000 miles per year. Everything in the lease, including NY State sales tax, acquisition fee, like the Mercedes lease are rolled into the lease. The monthly payment is $407.

Now here are the numbers for the First Edition, Rapid Red, MSRP $60,800:

36 months, 10,500 miles per year with no money down $1162. To be added are sales tax $5,244, less Federal Credit of $7,500 and NY State Credit of $2,000 which is a savings of $4,256.

If that $4,256 were used as a deposit the monthly payment would be reduced to $1,031.

If the mileage was reduced to 7,500 miles per year the monthly payment goes down to $1,015.

I assume that if I were to lease today a 2021 Mercedes E450 with a MSRP of $74,000 the monthly lease payment would be about $1,025 per month. The E350 (4 cylinder) or the BMW 540 (6 cylinder - BMW lease's out better than Mercedes) would be about $100 less per month, about $925.

So, there you have it: A 2021 Ford Mustang First Edition or a 2021 Mercedes E450 will cost the same: A Mercedes E350 or BMW 540 less.

Now the question is: How much do you/we really want the MachE as it is going to very expensive to buy and/or lease. For me, being on Long Island where electricity cost $.23 per kwh, the savings are minimal. I have calculated the savings assuming 10,000 miles per year to be less than $500 per year.

I was hoping that the Ford Option Plan would be aggressive but clearly it is not.

So, for me I am going to place the order. When I test drive the Mustang, if it does not "blow me away" I will cancel and just get another Mercedes for the same price!
 

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I didn't do the math for the premium, but I did for the Select: for 48 month option at 12k mi/yr the balloon note was 35%, and at 15k mi/year it was 33%. That is relevant since the 4 years of payments is on 65% or 67% of the price, and reflects the fact that BEVs typically depreciate quickly AND that Ford has no idea what the car will be worth in 4 years and has no intention of getting a bunch of returned cars that are underwater.

As for the costs to you being the same as a Mercedes ICE, rather than saying "I can get a Mercedes for the same price" you could say "I can get a car with significantly lower carbon footprint for the same price".
 

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Discussion Starter #3
The only reason I am considering the Mustang is that I want to go green: so there I agree with you. But on the other hand I do not want to "raked over the coals".

Whether I go green this year or two years from now, I am still doing my part. Based on these projections, if I wait two years I can save $30,000 on a used MachE.

When I went to order, I did not see the balloon at 35% for 4 years 12,000 miles per year or 33% for 4 years 15,000 miles.

Can you please advise where you got this information?

Thanks.
 

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Discussion Starter #4
Just did a better check of "Finance Details"

Turns out the "Balloon" 36 months, 10,500 per month is $26,144: that equates to 43% "residual"

For 7,500 miles balloon is $26,752; that equates to 44%.

So it would seem for 36 months, every 7,500 miles cost 1%.

Based on a MSRP of $60,800 with a deposit of $500, a monthly payment of $1,146 gives the annual interest rate of 5.95%.

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

I cannot understand Ford's thinking: Incredible high interest rate plus extremely low residual.

Anyone who buys must be aware that in Ford's mind these cars will not be holding their value and are going to be very, very expensive.

Again, if the First Edition upon driving "blows me away" then I will "treat" myself. If not I guess another Mercedes will have to do.

Real First World Problems!
 

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Discussion Starter #5
Just an update:

After one year the Model Y will be available for leasing. That will be in January/February of 2021. The long range AWD Model Y MSRP is $52,990.

Just priced out a Model 3 performance with a MSRP of $54,990 ($2,000 more) the closest MSRP to the Model Y;

Lease for 36 months, 10,000 miles per year, zero down is $755 a month: with tax $825 a month.

The Model Y is cheaper so the lease payments should be less, under $800 a month.

That is significantly cheaper than the First Edition.

As I just posted, the Ford Option is nothing more than a deferred purchase plan. It does not have the economic benefits of a lease.
 

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Just an update:

After one year the Model Y will be available for leasing. That will be in January/February of 2021. The long range AWD Model Y MSRP is $52,990.

Just priced out a Model 3 performance with a MSRP of $54,990 ($2,000 more) the closest MSRP to the Model Y;

Lease for 36 months, 10,000 miles per year, zero down is $755 a month: with tax $825 a month.

The Model Y is cheaper so the lease payments should be less, under $800 a month.

That is significantly cheaper than the First Edition.

As I just posted, the Ford Option is nothing more than a deferred purchase plan. It does not have the economic benefits of a lease.
Does your comparison consider the Federal incentive and any differences between the two vehicles?
 

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Discussion Starter #7
Yes: The FE, is $60,800, sales tax is $5,245. There is a Federal Tax Credit of $7,500 plus NY State tax credit of $2,000 which gives a net credit of $4,256.

In my calculations I use $4,256 as a deposit.

The lease payment for 3 years, 10,500 per year, with the $4,256 deposit is $1,032 vs. The Model Y long range AWD at $800.

Over the three years, the Mustang will cost $8,300 more than the Model Y.

Model Y vs. FE MachE:

The Model Y has longer range, is faster and has better technology and is not first year of production and has a higher resale value.

The MachE looks better, has a better interior (IMO) has Ford behind it and will have first year production growing pains and uncertain resale value.

MachE vs. Model Y at same price: go either way

MachE cheaper than Model Y: get it and accept first year production problems and uncertain resale value because it is less money.

MachE more than Model Y: pretty hard, at least in my mind, to justify spending more for a new model vs. a standard already out and proven model with high resale value.

Again: just my $.02 but unless I am blown away by the Mustang, my dealer may have in inventory a Rapid Red First Edition!
 

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Discussion Starter #8
After my dealer confirmed X-Plan pricing I ordered my First Edition.

Once I did that, the price calculator disappeared!

I called Ford: 1-800-334-4375 and they told me, that going forward I have to deal with the dealer for information about Ford Option Plan

Has this happened to anyone else?
 

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After my dealer confirmed X-Plan pricing I ordered my First Edition.

Once I did that, the price calculator disappeared!

I called Ford: 1-800-334-4375 and they told me, that going forward I have to deal with the dealer for information about Ford Option Plan

Has this happened to anyone else?
Maybe if you ‘Sign Out’ of the Ford site on your web-browser?
 

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go to ford.com -> mach E -> configure -> select the car, battery, options and then click the "finance" button:
1771
 

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plugging the above numbers into calculator.net's auto lease calculator gives a payment of $562.49:
1772
 

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Discussion Starter #14
go to ford.com -> mach E -> configure -> select the car, battery, options and then click the "finance" button:
View attachment 1771

Thanks I did that and you absolutely correct.

Now I do not know what to believe: What appears above or what appeared on my finance calculator where I was placing my order.

Clearly .9% financing plus $2500 in incentives changes the entire picture - for the better!

Has anyone else run into two different finance calculators?
 

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Thanks I did that and you absolutely correct.

Now I do not know what to believe: What appears above or what appeared on my finance calculator where I was placing my order.

Clearly .9% financing plus $2500 in incentives changes the entire picture - for the better!

Has anyone else run into two different finance calculators?
I haven't converted my reservation to an order yet, so I don't know what it shows then. I don't think the $2500 or 0.9 will be available, but it will certainly be far better than 6%
 

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Discussion Starter #16
Just went to Ford.com and configured the GT:

Under Financing the APR is shown as 5% not .9% and under total incentives $0. For 10,500 miles the balloon (residual) is 44%

When you configure the Premium/Select/California the APR is shown as .9%, not 5% and total incentives $2,500 not zero. But the residual is the same: 44% for 10,500 miles.

What is shown under the GT is what I was shown when I ordered my First Edition. 5% APR and no incentives.

I am sure the APR and incentives available (if any) will be sorted out and will be the same for all models.

I cannot imagine a different APR and incentives for the First Edition/GT and Premium/Select/California.



Happy 4th, stay safe, wear masks in public and social distance!
 

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After my dealer confirmed X-Plan pricing I ordered my First Edition.

Once I did that, the price calculator disappeared!

I called Ford: 1-800-334-4375 and they told me, that going forward I have to deal with the dealer for information about Ford Option Plan

Has this happened to anyone else?
I contacted 5 dealerships in the Metro DC area before getting confirmation of A Plan or X Plan acceptance from Apple Ford of Columbia MD
 

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I contacted 5 dealerships in the Metro DC area before getting confirmation of A Plan or X Plan acceptance from Apple Ford of Columbia MD
Where do you live? I'm buying through Koons Ford - Silver Spring, MD, no ADM, X-Plan accepted, refundable deposit.
 
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