F-150 Lightning Residual Values for Ford Options Plan Released (compared to Mach-E)

[sotek2345]

Just a guess... Ford doesn't really need to offer people money to use Ford Options to buy the F150. With how much demand it has, they could get away with charging people and still have takers

The same is true for the Mach-e though.

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[cclark20]

So a $80K Lariat with a 10,500 miles X 36 month Ford Options has a residual value of 50% or $40K. The base monthly payment without any taxes, interest or dealer fees would be $1,111+- P/M.

The Red Carpet Lease if they use them likely will have better residuals and lower costs per month as long as they pass through the $7500.

If you can’t qualify for the $7500 tax credit then the regular lease that uses the tax incentive to reduce the cap cost would be a better choice.

On a side note I certainly hope an 80K Lightning is worth more than 40K in 3 years.

 

[pstansel]

Heck I hope there's free money to use it! My only hesitation is the trade in limit. Mine will be close.

 

[adoublee]

Heck I hope there's free money to use it! My only hesitation is the trade in limit. Mine will be close.

Same concern. Is it a limit on what they can pay for the trade, or the payoff amount that reduces the loan?

 

[monsterlag]

Why not?

It's still offered on the Mach-E.

Oh man, don’t give me hope. If that is available it would be sub $600 for the XLT SR in NY. Of course this is assuming interest rates aren’t ridiculous.

 

[tbinmd]

Same concern. Is it a limit on what they can pay for the trade, or the payoff amount that reduces the loan?

They can always pay you more for the trade, and just provide you a check for the amount over what is allowed to be applied to the Ford options plan. Unlike a loan you don't pay off the ballon payment until it comes due.

 

[audiomikej]

Lariat ER $80k truck is going to be worth $40k in 3 years? yikes! Thinking should just wait 3 years and buy one of those. My $32k (new) truck in 2018 is now worth $34k and it's 3.5 years old. I am ready to upgrade my not daily driven truck now but nothing is worth upgrading to. I typically buy a new vehicle every couple years so I have paid a ton of depreciation on multiple vehicles simultaneously. Typically in the $200-300 range, but over $1k per month to own a F-150, ah.... no hard pass.

 

[Ruination]

Lariat ER $80k truck is going to be worth $40k in 3 years? yikes! Thinking should just wait 3 years and buy one of those. My $32k (new) truck in 2018 is now worth $34k and it's 3.5 years old. I am ready to upgrade my not daily driven truck now but nothing is worth upgrading to. I typically buy a new vehicle every couple years so I have paid a ton of depreciation on multiple vehicles simultaneously. Typically in the $200-300 range, but over $1k per month to own a F-150, ah.... no hard pass.

Doubt it.

But Ford isn't dumb enough to post a residual where they might lose money.

 

[Pioneer74]

My $32k (new) truck in 2018 is now worth $34k and it's 3.5 years old.

And 3 years ago, nobody would have said that your trucks residual after 36 months was 106%. Residual is a "best guess". The market right now is crazy, and Ford doesn't have any past data on an electric truck so they are being conservative.

 

[adoublee]

Maybe depending on state, it seems sales tax on full value of vehicle will be paid up front since it is a purchase, versus a lease that I believe has sales tax paid in the lease payments, which would be based on vehicle value minus residual value. So the value of option to turn in seems like a backstop against a major depreciation fail, but Options may not be best if expecting to turn in hassle free. Still better than leasing if 7500 tax credit is still available but not passed through in lease savings. Once 7500 is gone, Options may not look as good anymore.

 

[Deleted member 9341]

And 3 years ago, nobody would have said that your trucks residual after 36 months was 106%. Residual is a "best guess". The market right now is crazy, and Ford doesn't have any past data on an electric truck so they are being conservative.

Right. It’s an educated guess that’s very risky biz for financial institutions. Lots of potential exposure. Esp where dramatically new and rapidly evolving technology is concerned

 

[astricklin]

So a $80K Lariat with a 10,500 miles X 36 month Ford Options has a residual value of 50% or $40K. The base monthly payment without any taxes, interest or dealer fees would be $1,111+- P/M.

The Red Carpet Lease if they use them likely will have better residuals and lower costs per month as long as they pass through the $7500.

If you can’t qualify for the $7500 tax credit then the regular lease that uses the tax incentive to reduce the cap cost would be a better choice.

On a side note I certainly hope an 80K Lightning is worth more than 40K in 3 years.

I don't believe that Ford is offering the $7500 on the red carpet lease and good luck getting a third party lease company to do so as well.

 

[cclark20]

I don't believe that Ford is offering the $7500 on the red carpet lease and good luck getting a third party lease company to do so as well.

No luck needed at all as there are some finance companies already passing the $7500 through on leases.

 

[2wheeltraveler]

Unfamiliar with Ford options program so I have a couple questions I hope you can clarify (Lariat ER @ 80k)

1. Does the trade-in tax advantage apply in an Options scenario? AKA, 40k trade reduces your tax liability from (80k * tax rate) to (40k * tax rate)?
2. With a 40k trade in and out of pocket tax and fees payment, does a 50% residual mean you could have a 0$ payment for 3 years with the option to buy out or walk away at end of term?
3. $7.5k federal tax credit still comes after on your taxes so you will "float" the sales tax payment out of pocket and get it back later on your tax return (we qualify for full credit)?

 

[sotek2345]

Unfamiliar with Ford options program so I have a couple questions I hope you can clarify (Lariat ER @ 80k)

1. Does the trade-in tax advantage apply in an Options scenario? AKA, 40k trade reduces your tax liability from (80k * tax rate) to (40k * tax rate)?
2. With a 40k trade in and out of pocket tax and fees payment, does a 50% residual mean you could have a 0$ payment for 3 years with the option to buy out or walk away at end of term?
3. $7.5k federal tax credit still comes after on your taxes so you will "float" the sales tax payment out of pocket and get it back later on your tax return (we qualify for full credit)?

1) If your state has this benefit then yes it applies - same as any other purchase

2) Ford will likely limit how much you can put down on the truck if you use Ford options to avoid this scenario (they did for mach-e)

3) Yes, that is correct under the current law.

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