F150 Lightning ALG residual value

[SmoothJ]

Do we know what the ALG Residual Value will be for these EVs? I would love if its the same as the ICE counterparts, but I doubt that will be the case.

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[sotek2345]

No info on the Lightning, but for our Mach-e GT it was about 35 percent of MSRP at 4 years 10500 miles per year.

 

[greenne]

No info on the Lightning, but for our Mach-e GT it was about 35 percent of MSRP at 4 years 10500 miles per year.

Sotek,

Your post yesterday got me thinking about possibly leasing or maybe using the purchase plan you mentioned yesterday.

1st concern is the EV credit. If the BBB passes and the EV credit becomes refundable its less of a concern, but as it stands right now I cannot take advantage of the current nonrefundable $7500 credit. I have a lower taxable income and have solar credits to use up. I don't anticipate being near $7500 tax liability for the next few years at least. With leasing perhaps I can get the dealer to take that off the lease price since they will claim it.

2nd concern is the residual value and technology advances in the past couple years. I normally keep vehicles a long time, but since battery technology is evolving so fast, i can see a scenario where EVs have 400, 500, 600mi or more with the ability to charge faster. That would not only entice me to upgrade, but also possibly drive down any resale value. I may get the Lightning and decide its good and keep it forever, maybe not. I just don't know...EVs are a whole other dynamic. A lease may give me more options down the road.

3rd-- It used to be the issue with leasing was you couldn't get those sweet rebates and lease. Used to be you could drive down the purchase price with a purchase vs lease. Since EVs are going full price(msrp) that isn't as much of a factor anymore. I doubt there is/will be any pricing incentive to buy vs lease. The base "price" would be the same...msrp. Only factor would be guessing the residual.

Thoughts?

 

[sotek2345]

Sotek,

Your post yesterday got me thinking about possibly leasing or maybe using the purchase plan you mentioned yesterday.

1st concern is the EV credit. If the BBB passes and the EV credit becomes refundable its less of a concern, but as it stands right now I cannot take advantage of the current nonrefundable $7500 credit. I have a lower taxable income and have solar credits to use up. I don't anticipate being near $7500 tax liability for the next few years at least. With leasing perhaps I can get the dealer to take that off the lease price since they will claim it.

2nd concern is the residual value and technology advances in the past couple years. I normally keep vehicles a long time, but since battery technology is evolving so fast, i can see a scenario where EVs have 400, 500, 600mi or more with the ability to charge faster. That would not only entice me to upgrade, but also possibly drive down any resale value. I may get the Lightning and decide its good and keep it forever, maybe not. I just don't know...EVs are a whole other dynamic. A lease may give me more options down the road.

3rd-- It used to be the issue with leasing was you couldn't get those sweet rebates and lease. Used to be you could drive down the purchase price with a purchase vs lease. Since EVs are going full price(msrp) that isn't as much of a factor anymore. I doubt there is/will be any pricing incentive to buy vs lease. The base "price" would be the same...msrp. Only factor would be guessing the residual.

Thoughts?

I really like the Ford options plan they are using for the Mach-e. To me it is a best of both world approach and shifts all of the risk on to Ford. If the resale stays high - buy out the loan and keep or resell the truck. If the value tanks turn it in a let ford take the hit. Since you don't have to turn it in, mileage is less of a concern as well.

As for how the truck will hold value, I suspect it will be pretty good going by other EVs and performance trucks in general (remember this thing is faster than a Raptor and keeps up with a TRX). That said, the last few years have been weird and who knows what will happen with EVs in the next few. I suspect the ER trucks will hold up better than the SR ones.

to your specific questions:

- I don't believe any credit was given for the tax credit for leasing a Mach-e (if that was even an option - didn't look into it).

- Ford options give you the same flexibility as a Lease with less restrictions since you own the vehicle

- the only rebates Ford offered on the Mach-e were as part of the Ford options plan.

 

[shutterbug]

With leasing perhaps I can get the dealer to take that off the lease price since they will claim it.

The dealer cannot claim the tax credit, since they will not own the vehicle. Ford credit will own it.

 

[SmoothJ]

For the ICE 2021s F150s, I believe the Lariat had the best ALG values after 3 years.

With the 2022 Mach-E, it appears to be ~44%.

 

[greenne]

The dealer cannot claim the tax credit, since they will not own the vehicle. Ford credit will own it.

Good point. I know in the past dealer could offer you a $7500 lease reduction on hybrids..I assume Ford would claim the credit and pass it to the dealer somehow.(Similar to a manufacturer incentive). Not sure if they would do this on the Lightning and/or maybe it would already be baked into the lease price.

I assume under the Ford options plan since you own it, you still claim the EV credit of eligible.

 

[SmoothJ]

Good point. I know in the past dealer could offer you a $7500 lease reduction on hybrids..I assume Ford would claim the credit and pass it to the dealer somehow.(Similar to a manufacturer incentive). Not sure if they would do this on the Lightning and/or maybe it would already be baked into the lease price.

I assume under the Ford options plan since you own it, you still claim the EV credit of eligible.

From what I just heard about old-school leasing, yes - its still available, but for a higher money factor. This way Ford gets the incentive and you don't.

 

[shutterbug]

Good point. I know in the past dealer could offer you a $7500 lease reduction on hybrids..I assume Ford would claim the credit and pass it to the dealer somehow.(Similar to a manufacturer incentive). Not sure if they would do this on the Lightning and/or maybe it would already be baked into the lease price.

Other OEMs have done that. Ford has not.

I assume under the Ford options plan since you own it, you still claim the EV credit of eligible.

Yes

 

[SmoothJ]

One thing I just learned though about this...

With the RCL, you get a higher ALG with higher interest, and with the Ford Options plan, you get a lower ALG but lower interest. I guess its cause they know you will get the tax credit on the Ford Options plan.

 

[shutterbug]

One thing I just learned though about this...

With the RCL, you get a higher ALG with higher interest, and with the Ford Options plan, you get a lower ALG but lower interest. I guess its cause they know you will get the tax credit on the Ford Options plan.

I could be wrong, but my memory tells me that with MME residual value was the same with RCL an Options. But RCL had 3 drawbacks:

• you had to pay acquisition fee
• higher interest
• no $1,000/$2,500 incentive that Options buyers got

Also Options had 48 month term and if you want to keep the car, you just pay the balloon and you were done. Also, I think, once you get $7,500 credit you have an opportunity to apply it to your loan and have one time opportunity to re-calculate your loan.

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