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

[astricklin]

I believe the answer to #2 is that the down payment is limited to 30%

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[Pioneer74]

Does anybody with Mach-E options experience know if Gap insurance is included like a traditional Ford lease?

 

[shutterbug]

Does anybody with Mach-E options experience know if Gap insurance is included like a traditional Ford lease?

It is not.

 

[Pioneer74]

It is not.

Thanks. If I ever win the Lightning Lottery, I'll have to check into adding it.

 

[lancersrock]

I believe the answer to #2 is that the down payment is limited to 30%

is that 30% total price? or 30% of the total payments - the balloon payment?

 

[AB852]

is that 30% total price? or 30% of the total payments - the balloon payment?

30% of vehicle sale price not including sales tax and dealer fees. $80k lariat max down payment would be $24,000. These are rounded numbers.

 

[ExCivilian]

How are the taxes calculated on an option sale?

Is it based on the full value or the residual once you buy it out at the end of the option similar to a lease (in CA; some states require all sales tax up front on a lease)?

 

[shutterbug]

How are the taxes calculated on an option sale?

Is it based on the full value or the residual once you buy it out at the end of the option similar to a lease (in CA; some states require all sales tax up front on a lease)?

Options is not a lease, so you pay all sales taxes up front and it's added to the purchase price. Doesn't change balloon amount.

 

[Fordskeptic]

30% of vehicle sale price not including sales tax and dealer fees. $80k lariat max down payment would be $24,000. These are rounded numbers.

Are you sure about that? Maybe I misunderstand. Say $80k truck 50% residual....you pay $24k down and pay tax, title, reg, etc cash and finance only $16k. That does not sound right. I would like it to be right though.

 

[ExCivilian]

Options is not a lease, so you pay all sales taxes up front and it's added to the purchase price.

What happens if you don't buy it out at the end?

I don't have any experience with Ford. Is this a program where they buy it back from the owner if the owner doesn't want it anymore?

So it's: I buy the truck from Ford (with sales tax) and then at the end of the Option term they buy it from me instead of me "paying it off?"

 

[AB852]

Are you sure about that? Maybe I misunderstand. Say $80k truck 50% residual....you pay $24k down and pay tax, title, reg, etc cash and finance only $16k. That does not sound right. I would like it to be right though.

This is the way it was explained to me via a Ford dealer. I think if you were planning on putting down $24k plus an additional $7-10k to cover tax, title, registration. Your loan amount over 36 or 48 months would be the $16k plus interest. There maybe another minimum threshold that is unspoken about and will come out later. This is purely based off how it runs for Mach E. They might say 30% max down or minimum $30k finance. I’m sure there is a sweet spot for them where it does/doesn’t make sense to sell this finance plan.

 

[AB852]

What happens if you don't buy it out at the end?

I don't have any experience with Ford. Is this a program where they buy it back from the owner if the owner doesn't want it anymore?

So it's: I buy the truck from Ford (with sales tax) and then at the end of the Option term they buy it from me instead of me "paying it off?"

They wouldn’t buy it from you. You would just drop off the keys. If you’ve used more miles then allocated in your Options “plan” you will be charged a per mile fee. If you use less miles, you don’t get anything. You don’t get any of your sales tax money back, even though you paid on the price of the vehicle.

I honestly think an F-150 lightning will be worth more than 50% in 36 month. If that is the scenario you have every right to purchase the vehicle from ford and the resale to whomever you wish. Whether that be CarMax, Carvana, or even the ford dealer that you purchased from.The concept is kind of hard to wrap your head around.

 

[shutterbug]

What happens if you don't buy it out at the end?

I don't have any experience with Ford. Is this a program where they buy it back from the owner if the owner doesn't want it anymore?

So it's: I buy the truck from Ford (with sales tax) and then at the end of the Option term they buy it from me instead of me "paying it off?"

After 35 or or 47 payments, you pay $475 disposal fee and turn it in. As with a lease, you may have to pay for excess mileage and any damage or non-reversible mods. If it's value exceeds balloon amount, you could either pay it off or use excess value to buy another vehicle. The nice thing is that your credit report only includes the installment payments and not the balloon amount. In my case, the balance shows $17K, even though the actual balance is $40K.

 

[sotek2345]

They wouldn’t buy it from you. You would just drop off the keys. If you’ve used more miles then allocated in your Options “plan” you will be charged a per mile fee. If you use less miles, you don’t get anything. You don’t get any of your sales tax money back, even though you paid on the price of the vehicle.

I honestly think an F-150 lightning will be worth more than 50% in 36 month. If that is the scenario you have every right to purchase the vehicle from ford and the resale to whomever you wish. Whether that be CarMax, Carvana, or even the ford dealer that you purchased from.The concept is kind of hard to wrap your head around.

You aren't buying it from Ford - you have ownership of the vehicle the entire time - just like a loan. You can sell it to anyone you like as long as you pay off the balance of the loan (which includes the balloon amount).

 

[AB852]

You aren't buying it from Ford - you have ownership of the vehicle the entire time - just like a loan. You can sell it to anyone you like as long as you pay off the balance of the loan (which includes the balloon amount).

You are correct. Thank you for clarifying.

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