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I'm starting my research on this.. so here's the overview on how Ford "Options" works. Just by looking at their "lease" calculator I don't see much of an advantage to Options. By not having a traditional lease, this option does not have the ability to apply the tax credit to the cap cost of the car. Are they trying to prevent people flipping leases?



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Discussion Starter #22
I'm starting my research on this.. so here's the overview on how Ford "Options" works. Just by looking at their "lease" calculator I don't see much of an advantage to Options. By not having a traditional lease, this option does not have the ability to apply the tax credit to the cap cost of the car. Are they trying to prevent people flipping leases?



View attachment 2459
Do not understand your question:

It is pretty much established that the present Ford Option Plan with a balloon of 44% does not give you the advantages of lease but is nothing more than a deferred purchase plan.

As an update, you can lease a Model Y, LR AWD for 36 months, 10,000 miles per year with zero money down for $633 per month plus sales tax. That is substantially less than the Ford Option Plan for the First Edition, even after taking into consideration the $7,500 Federal Tax credit, basically the same price as the Tesla Model Y.

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Do not understand your question:

It is pretty much established that the present Ford Option Plan with a balloon of 44% does not give you the advantages of lease but is nothing more than a deferred purchase plan.

As an update, you can lease a Model Y, LR AWD for 36 months, 10,000 miles per year with zero money down for $633 per month plus sales tax. That is substantially less than the Ford Option Plan for the First Edition, even after taking into consideration the $7,500 Federal Tax credit, basically the same price as the Tesla Model Y.

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My point is what is why would Ford do this? Are they trying to minimize their used inventory? Why wouldn't they try to gain more consumers by offering a traditional lease?
 

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Discussion Starter #24
My point is what is why would Ford do this? Are they trying to minimize their used inventory? Why wouldn't they try to gain more consumers by offering a traditional lease?
There are many, many reasons under discussion on this forum:

  • Ford thinks that the resale value of the MachE will be terrible and does not want them back at the end of the Ford Option plan.
  • Ford thinks the demand will be so great that they will not have to offer a lease
  • As the first MachE, the First Edition, is closer to actual production real leases will be forthcoming
  • At the time of the Ford Option Plan, Tesla was not offering leases on the Model Y
  • In March Tesla reduced the prices on both the Model 3 and Model Y: Hopefully, by the time the First Edition arrives there will either incentives or modification in the MSRP.
  • Tesla started offering leases on the Model Y about 2/3 months ago.
After all is said and done, I will not buy my ordered First Edition. I will only lease it. If Ford does not come up with a competitive lease option, I will not take delivery, and my dealer will be the proud owner of a Rapid Red First Edition!
 

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Discussion Starter #25
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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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!
I am in Florida. My dealer told me today that he found out that Ford Options for the MME is NOT available in our region, Florida. This is news to me. Can anyone confirm this information is correct?
Thanks.
 

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Discussion Starter #27
I am in Florida. My dealer told me today that he found out that Ford Options for the MME is NOT available in our region, Florida. This is news to me. Can anyone confirm this information is correct?
Thanks.

Here is my suggestion:

Go to Ford.com and go to build MachE: you will be required to put in your zip code to find you "local" dealer. Then select.

Then configure your MME, and after doing so, there is in the upper right hand corner, a picture of a calculator. Click it and the Option Plan will appear.

If it does, then the Option Plan is available for you.

You can change the amount you want to put down and the length.

But most important will appear incentives (if any) and interest rate.

Take a screen shot.

Hope this helps.
 

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I am in Florida. My dealer told me today that he found out that Ford Options for the MME is NOT available in our region, Florida. This is news to me. Can anyone confirm this information is correct?
Thanks.
Quote from Ford Credit web page:

“Ford Options is not available in Nevada, New Hampshire, North Carolina or Washington, D.C. See dealer for complete Ford Options program details.”
 

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I am in Florida. My dealer told me today that he found out that Ford Options for the MME is NOT available in our region, Florida. This is news to me. Can anyone confirm this information is correct?
Thanks.
I went onto the financing calculator today for my local dealer in Clearwater, FL and noticed there was only a lease and finance option available. My dealer said that they have been training on options so not sure what is actually available.
 

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Discussion Starter #30
I went onto the financing calculator today for my local dealer in Clearwater, FL and noticed there was only a lease and finance option available. My dealer said that they have been training on options so not sure what is actually available.
I put in the zip code for Clearwater, Florida and this is the OPTION PLAN for a Premium AWD LR.

Note:

  • Incentive is $1,000
  • Interest rate is 2.25%
Here is a screen shot: Hope this helps.







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I went onto the financing calculator today for my local dealer in Clearwater, FL and noticed there was only a lease and finance option available. My dealer said that they have been training on options so not sure what is actually available.
You can find it on the Ford website. Go the MachE page and start to build one, the finance icon that shows up will include the MachE Options plan and you can plug in numbers. The finance button that shows initially at the top does not show the Ford options.
 

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I put in the zip code for Clearwater, Florida and this is the OPTION PLAN for a Premium AWD LR.

Note:

  • Incentive is $1,000
  • Interest rate is 2.25%
Here is a screen shot: Hope this helps.







View attachment 4434
Thank you. I was able to get a lease option at $649 a month. It wasn't available last time I checked. Oh well. Options it is.
 

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Discussion Starter #33
Thank you. I was able to get a lease option at $649 a month. It wasn't available last time I checked. Oh well. Options it is.
I do not think your dealer offered you a lease at $649 a month.

If he did, can you please post the details.
 

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Discussion Starter #35
If I can find the screen again I will share it
None of us have ever seen a screen for a lease - not now or even before.

I think what you saw was a screen for the Option Plan.
 

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Discussion Starter #37
Thanks.

When you back out the deposit and divide by 36 that puts the monthly payments over $800 per month. Add sales tax and you close to $900 a month.

That is more than under the Ford Option Plan.

MY FE had a a MSRP of $59,800, a few thousand more than your car and that is why my monthly payment came to $956.

A payment of $956, or in your case nearly $900 vs. just over $700 a month for a Model Y, LR AWD is a joke.

No one will lease the MME when the Option Plan is less.
 

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Thanks.

When you back out the deposit and divide by 36 that puts the monthly payments over $800 per month. Add sales tax and you close to $900 a month.

That is more than under the Ford Option Plan.

MY FE had a a MSRP of $59,800, a few thousand more than your car and that is why my monthly payment came to $956.

A payment of $956, or in your case nearly $900 vs. just over $700 a month for a Model Y, LR AWD is a joke.

No one will lease the MME when the Option Plan is less.
My local dealer found the “Ford Options”Handbook. However, they still claim I can’t get a 2.25% on Ford Options. They showed me the attached picture on the rates sent by Ford. I am dealing with the leasing person who was able to find the handbook.
 

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My local dealer found the “Ford Options”Handbook. However, they still claim I can’t get a 2.25% on Ford Options. They showed me the attached picture on the rates sent by Ford. I am dealing with the leasing person who was able to find the handbook.
That is strange. I did the Ford Option and got 2.25%. Have you tried applying for credit directly on Ford.com using their online Ford Credit application? I accidentally did both and the second time, my dealer called to let me know I was approved for the Ford Option. You should try that and then call Ford Finance to confirm. Caveat: the 2.25% is based on how good credit is.
 

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That is strange. I did the Ford Option and got 2.25%. Have you tried applying for credit directly on Ford.com using their online Ford Credit application? I accidentally did both and the second time, my dealer called to let me know I was approved for the Ford Option. You should try that and then call Ford Finance to confirm. Caveat: the 2.25% is based on how good credit is.
I did not try applying for credit directly on Ford.com. I did use the online calculator. I could not estimate an FE. However, for a premium with MSRP $56,640, 12,000 miles per year, ($10,550 down payment) , and total financing of $45,090, at 2.25%, with $1000 incentive included, the Monthly payment estimated was $643.91. Ballon was $24,921. See attachment.

My FE MSRP is$ 59400, and I am putting $18,000 down, for a 36 month Ford Option with 12K miles per year.
Attached is the "Ford Option" Payment Estimation that my dealer used today for a 36 month 12K miiles with $18,000 down payment. There is no $1000 cash incentive with this deal and the interest rate is 5.4. Monthly $485.73 (see attachment ) and the balloon is $34,452. (58% of MSRP $59,400).
 

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