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

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Thanks for all this info but if I'm going to get charged interest on $40K that I can't even pay down then I don't really see the advantage of Options in this specific scenario.

The only real advantage is that if Lightning turns into an "always in the shop" albatross, and falls in value, you have an easy way to get rid of it. That was my thinking when I bought MME. With total finance charges of $3,100 and an incentive of $1,000, it wasn't to bad. Now the prices went up and interest rates went up and I'm not sure if incentives are still there, not sure what I would do.

If there are still incentive for Options (in CA it was $2,500), you could sign up for Options, and just pay it off a couple of months later.

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[Deleted member 9341]

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

I would HIGHLY suggest getting it (loan or lease or Options). I once had a 6 month old car stolen and thanks to the initial depreciation hit it was worth less than the payoff at that point. You can guess who was on the hook to make up the difference to the financial institution.

 

[Deleted member 9341]

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.

The whole reason Options exists is to allow for the customer to get the EV tax credit by putting the vehicle in the customer’s name instead of Ford Credit’s name. It’s only available on the Mach E and Lightning. I’d think when the 7,500 credit is gone, the Options program will be gone too. It’s essentially (with a couple of nuances) a lease with the creative twist of who owns it in order to exploit the tax credit.

 

[ExCivilian]

It’s essentially (with a couple of nuances) a lease with the creative twist of who owns it in order to exploit the tax credit.

They could simply pass the credit through like nearly every other manufacturer.

It's also interesting in that at least VAG is on record as structuring their lease deals in order to entice customers to get on three year product cycles. They want their vehicles (with that ultra valuable battery pack) back. Tesla's even more extreme with barring lessees from buying out the leases on some of their models.

 

[Deleted member 9341]

They could simply pass the credit through like nearly every other manufacturer.

It's also interesting in that at least VAG is on record as structuring their lease deals in order to entice customers to get on three year product cycles. They want their vehicles (with that ultra valuable battery pack) back. Tesla's even more extreme with barring lessees from buying out the leases on some of their models.

Yeah I don’t understand why they don’t pass it along on a lease either. I’ve leased 3 EV BMWs and they passed it along on all 3 as a down payment. Odd

 

[adoublee]

They could simply pass the credit through like nearly every other manufacturer.

It's also interesting in that at least VAG is on record as structuring their lease deals in order to entice customers to get on three year product cycles. They want their vehicles (with that ultra valuable battery pack) back. Tesla's even more extreme with barring lessees from buying out the leases on some of their models.

I understand Kia was on Niro EV, will not be on EV6 - effectively killing EV6 leasing.

 

[adoublee]

Hyundai has created their own Options-like plan.

https://www.carsdirect.com/deals-articles/how-it-works-hyundai-evolve-retail-financing

 

[shutterbug]

Hyundai has created their own Options-like plan.

https://www.carsdirect.com/deals-articles/how-it-works-hyundai-evolve-retail-financing

Crazy high interest rates.

 

[adoublee]

Crazy high interest rates.

4.01% on 36 month version. What will Ford Options be?

Wonder what the residual percentage looks like for the 60 month option.

 

[shutterbug]

4.01% on 36 month version. What will Ford Options be?

Currently it's 2.49% on MME (1.40% on GT) for either 36 or 48 months. My credit union is 1.79% for up to 48 months and 1.99% for 60 months. So yes, 4.01% is crazy high.

 

[rdr854]

I would HIGHLY suggest getting it (loan or lease or Options). I once had a 6 month old car stolen and thanks to the initial depreciation hit it was worth less than the payoff at that point. You can guess who was on the hook to make up the difference to the financial institution.

Or how about hitting a deer with 140 miles on the odometer. End of my then brand new Ford Fusion Hybrid before I used my first tank of gas.

 

[metroshot]

Yeah I don’t understand why they don’t pass it along on a lease either. I’ve leased 3 EV BMWs and they passed it along on all 3 as a down payment. Odd

Agree - why Ford's Red Carpet lease does not pass along the $7500 is odd.

When I leased my 2018 Honda PHEV, I remembered Honda Financial Services passed along the $7500 as a cap cost reduction, plus $3000 manufacturer incentive if you leased thru HFS, plus $2500 from the dealer's discount, and finally a $500 Honda CA state employee credit - made the $36,000 car drop to $22K and on top of that, state / local rebates dropped the overall cost to $18K.

My RV was $14.1K but when it came to buying her out, my bank said it's worth DOUBLE (in 2021).
So obviously, I bought her out.

Those were the good days!

 

[Pioneer74]

I would HIGHLY suggest getting it (loan or lease or Options). I once had a 6 month old car stolen and thanks to the initial depreciation hit it was worth less than the payoff at that point. You can guess who was on the hook to make up the difference to the financial institution.

That's why I like Ford leases. They come with GAP and that is why I don't even bring my checkbook when I pick up a new car.

 

[Deleted member 9341]

Or how about hitting a deer with 140 miles on the odometer. End of my then brand new Ford Fusion Hybrid before I used my first tank of gas.

There you go. Anything can happen and cost a small fortune if not covered

 

[GDN]

There you go. Anything can happen and cost a small fortune if not covered

You are correct, anything can happen, so it will be more expensive to that individual if you don't have that insurance. Overall these kinds of insurances definitely favor the seller of the insurance and not the buyer (at least when pooled together.). If they didn't the seller wouldn't sell them as there would be no profit.

So the insurance overall might save a few that might have to use it, overall it is costing the majority of us as it will never be used, but you will be lighter in the pocket anyway.

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