Financing vs Leasing the Lightning

[Prime8]

Has Ford announced the Ford Options Financing Program will be available on the Lightning? I've seen that it is only an option on the Mustang Mach E.

Yes Ford Options is available on the Lightning,
https://www.ford.com/finance/finance-options/?gnav=header-finance

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[JSJ]

One big thing is Ford Options let’s you apply for the tax rebates as it goes into your name etc where leasing Ford keeps those incentives.

I get the tax credit but it doesn’t make sense why that qualifies for it and the traditional lease doesn’t. It must be a lot more expensive to do Ford options vs leasing, to the point where it might even negate the tax credit.

 

[sotek2345]

I get the tax credit but it doesn’t make sense why that qualifies for it and the traditional lease doesn’t. It must be a lot more expensive to do Ford options vs leasing, to the point where it might even negate the tax credit.

It at all, many find Ford Options much cheaper than leasing. Ford even gave an incentive rebate for the Mach-e if you used it. You don't get the tax credit on a lease because you never own the car. Ford Options is just a loan with a balloon payment, so you have ownership.

 

[RavenYZF-R6]

I get the tax credit but it doesn’t make sense why that qualifies for it and the traditional lease doesn’t. It must be a lot more expensive to do Ford options vs leasing, to the point where it might even negate the tax credit.

Because Ford wants the credit back themselves on leases. Many companies out there will give it to you when you lease from them showing it is possible. They probably write it off as charity giving the lease discount lol.

 

[JSJ]

I still don’t see a difference in a ford option where you have a smaller payment vs financing and a buyout at the end or turn it in. That’s the exact same thing as a lease. Only difference is the tax credit. I wonder what the payment difference would be on the ford option vs lease, I’d imagine the ford option would be higher.

 

[sotek2345]

I still don’t see a difference in a ford option where you have a smaller payment vs financing and a buyout at the end or turn it in. That’s the exact same thing as a lease. Only difference is the tax credit. I wonder what the payment difference would be on the ford option vs lease, I’d imagine the ford option would be higher.

The difference is that with the Lease, Ford owns the truck (Title in their name ) where with Ford Options you own the truck (title in your name). Way more options if you want to sell it or trade it in before the end of the planned period (it acts just like any other loan with a pay off balance).

Honestly, I would be surprised if they even offered a lease on the Lightning - they didn't (as far as I could find out) for the Mach-e. If they do, I would guess the payments would be significantly higher with the lease since they don't want people going that way.

 

[LightningShow]

What is the difference between leasing and ford options? Doesn’t make any sense to me. Sounds like a way ford will get more money out of you vs a traditional lease?

It's a way for Ford to pocket the tax credit while acting like they're doing you a favor. I bet if you run all the numbers for the 3yr term+residual and compare to a traditional lease, Ford gets most of the tax credit back anyway. Smoke and mirrors.

 

[shutterbug]

Only difference is the tax credit. I wonder what the payment difference would be on the ford option vs lease, I’d imagine the ford option would be higher.

I don't think that's the only difference. Since you own the car with the Options financing, you can sell the car at any time and just pay off the loan. There is no acquisition fee with Options. When I bought MME the interest rate on Options was 2.25% (1.4% for GT). The money factor on RCL translated into something around 5%. So no, Ford Options was not higher.

 

[JSJ]

I don't think that's the only difference. Since you own the car with the Options financing, you can sell the car at any time and just pay off the loan. There is no acquisition fee with Options. When I bought MME the interest rate on Options was 2.25% (1.4% for GT). The money factor on RCL translated into something around 5%. So no, Ford Options was not higher.

You can do the same with a lease, I paid off my lease to sell it for a profit in this crazy used car market. Ford options has a buyout price at the end or you can turn it right back into them and walk away from it right? It’s the exact same thing as a lease as far as terms go, ford is just saying you own it but they’ve agreed to buy it back after a certain amount of time (which is what a lease is essentially).

 

[shutterbug]

You can do the same with a lease, I paid off my lease to sell it for a profit in this crazy used car market. Ford options has a buyout price at the end or you can turn it right back into them and walk away from it right? It’s the exact same thing as a lease as far as terms go, ford is just saying you own it but they’ve agreed to buy it back after a certain amount of time (which is what a lease is essentially).

Are you saying there were no buyout fees? With options, all you have to pay is the balance of the loan. Did you have to contact Ford to buy out the lease early? Ford Options doesn't have a "buyout price". It has a loan balloon payment at the end that you either pay or transfer ownership to Ford.

 

[JSJ]

Are you saying there were no buyout fees? With options, all you have to pay is the balance of the loan. Did you have to contact Ford to buy out the lease early? Ford Options doesn't have a "buyout price". It has a loan balloon payment at the end that you either pay or transfer ownership to Ford.

I’ve never done a ford options before, only lease. So at the end of the terms of the ford option, you have to either turn it back in or take on another loan? You can’t buy it outright for a 1 time cash payment? Is that the difference between ford options and leasing?

 

[sotek2345]

I’ve never done a ford options before, only lease. So at the end of the terms of the ford option, you have to either turn it back in or take on another loan? You can’t buy it outright for a 1 time cash payment? Is that the difference between ford options and leasing?

You can buy it out, or refinance the loan, at any time - including at the end. Just like any other loan.

 

[JSJ]

You can buy it out, or refinance the loan, at any time - including at the end. Just like any other loan.

So there really is no difference between a Ford options or lease, other than the tax credit and whatever sketchy business Ford is pulling because it makes no sense.

 

[SmoothJ]

So there really is no difference between a Ford options or lease, other than the tax credit and whatever sketchy business Ford is pulling because it makes no sense.

One more thing to add when doing a comparison between RCL and FO. When using RCL and FO you are technically only financing that small portion of the depreciation of the vehicle, this we already know.

However I believe with FO, you would would see the whole amount in your credit report. So for example, if you get a 80K truck, in RCL you would see you owe 40K (assuming 50% ALG), while with FO you would see the whole 80K. Not a big deal, but could be hard to qualify if you never had a loan that large before.

 

[shutterbug]

One more thing to add when doing a comparison between RCL and FO. When using RCL and FO you are technically only financing that small portion of the depreciation of the vehicle, this we already know.

However I believe with FO, you would would see the whole amount in your credit report. So for example, if you get a 80K truck, in RCL you would see you owe 40K (assuming 50% ALG), while with FO you would see the whole 80K. Not a big deal, but could be hard to qualify if you never had a loan that large before.

My credit report shows full loan amount as original loan amount, but outstanding amount does not include residuals.

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