Financing vs Leasing the Lightning

[RickLightning]

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.

Not correct.

There is no buyout fee with Ford Options. You get the tax credit, and you own the vehicle.

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[SmoothJ]

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

Ah, interesting. So for FO it would show say 80K as original balance, but say that you owe 40K As current balance?

 

[shutterbug]

Ah, interesting. So for FO it would show say 80K as original balance, but say that you owe 40K As current balance?

Yes.

 

[JSJ]

I’m curious what the payments would be with a ford option vs lease and what the buyout would be assuming the same term. Still seems fishy from ford.

 

[sotek2345]

I’m curious what the payments would be with a ford option vs lease and what the buyout would be assuming the same term. Still seems fishy from ford.

I am not sure why you think Ford is pulling something here. They have been doing it for over a year on the Mach-e and it is a great program.

 

[SmoothJ]

I’m curious what the payments would be with a ford option vs lease and what the buyout would be assuming the same term. Still seems fishy from ford.

I am not sure why you think Ford is pulling something here. They have been doing it for over a year on the Mach-e and it is a great program.

Balloon payments have been around for sometime now and its a good way to lower your monthly payments. However the ability to just give back the vehicle at the end is a nice twist.

 

[RickLightning]

I’m curious what the payments would be with a ford option vs lease and what the buyout would be assuming the same term. Still seems fishy from ford.

You can satisfy your curiosity by doing some Googling and reading threads about Mach-E purchases with Ford Options. Or, just keep assuming it's fishy.

In some states, the Mach-E got $2,500 in incentives for using Ford Options. In other states, only $1,000. I opted to get a traditional loan from Ford Credit for 0.9%, vs. Ford Options for 2.25%. When I did the analysis, since I won't be handing Ford the keys, I decided it didn't make any sense for me, and others with the $1,000 credit decided similarly.

What also matters is the rate of course. Both the loan, and Ford Options, are subject to the dealer increasing the rate, except for A/Z Plan (which we get). When we finally can order a Lightning, I'll evaluate the choices and see which works out better financially.

If nothing else, Ford Options in a state with a $2,500 rebate is a no brainer, no matter the rate, and then refinance the next week and keep the rebate.

 

[JSJ]

Ford is a business, they are in this to make money. Leasing has been around for a long long time and now just last year ford introduced ford options instead of leasing and no one thinks that’s fishy? They have to be making more money with ford options than leasing. What they describe ford options as is the exact same thing as leasing, but what’s the catch is what I’m wondering, they don’t do it to benefit us, it benefits ford first.

 

[RavenYZF-R6]

Ford is a business, they are in this to make money. Leasing has been around for a long long time and now just last year ford introduced ford options instead of leasing and no one thinks that’s fishy? They have to be making more money with ford options than leasing. What they describe ford options as is the exact same thing as leasing, but what’s the catch is what I’m wondering, they don’t do it to benefit us, it benefits ford first.

The big balloon payment at the end would turn off some buyers I’m sure after their three years of lower payments. This takes you back to the dealership to look at new vehicles and possible replace with another unit. They probably get more kickbacks for a sale instead of a lease so the dealer would benefit here. The used car market has gone bananas over the past two years so probably gonna make out well on resale anyway. Of course everything Ford does is to make money. That just gives us more options to weigh which is a good thing.

 

[JSJ]

The big balloon payment at the end would turn off some buyers I’m sure after their three years of lower payments. This takes you back to the dealership to look at new vehicles and possible replace with another unit. They probably get more kickbacks for a sale instead of a lease so the dealer would benefit here. The used car market has gone bananas over the past two years so probably gonna make out well on resale anyway. Of course everything Ford does is to make money. That just gives us more options to weigh which is a good thing.

You can still turn your ford options vehicle in though right? Isn’t there terms just like a lease and at the end you either get a ballon payment or just give it back to them and walk away?

When we order, will we know what the ford option payments are? That plays a big part in what trim/battery I’m getting.

 

[SmoothJ]

You can still turn your ford options vehicle in though right? Isn’t there terms just like a lease and at the end you either get a ballon payment or just give it back to them and walk away?

When we order, will we know what the ford option payments are? That plays a big part in what trim/battery I’m getting.

Yes, you can just turn it in.

No, you will not know the payments for FO off the site. That will be done later in F&I.

 

[RickLightning]

The big balloon payment at the end would turn off some buyers I’m sure after their three years of lower payments. This takes you back to the dealership to look at new vehicles and possible replace with another unit. They probably get more kickbacks for a sale instead of a lease so the dealer would benefit here. The used car market has gone bananas over the past two years so probably gonna make out well on resale anyway. Of course everything Ford does is to make money. That just gives us more options to weigh which is a good thing.

That balloon payment can then be refinanced with Ford Credit, so it doesn't need to be paid off.

The reason for Ford Options is that the lease payments would be large, and the loan payments are very large. My loan payments over 4 years are close to $1,200.

 

[RavenYZF-R6]

That balloon payment can then be refinanced with Ford Credit, so it doesn't need to be paid off.

The reason for Ford Options is that the lease payments would be large, and the loan payments are very large. My loan payments over 4 years are close to $1,200.

Refinancing it is “paying it off” just with a different lender now. I’m sure there are many reasons why it works out well for buyers and Ford, I just pointed out a few off the top of my head.

 

[SmoothJ]

Refinancing it is “paying it off” just with a different lender now. I’m sure there are many reasons why it works out well for buyers and Ford, I just pointed out a few off the top of my head.

The problem with doing FO and then the financing is the continuous payment. If you do the FO, you have 3-4 years, and then if you finance the balloon, it will be another 3+ years. So you would be out of warranty at that point.

 

[RickLightning]

Refinancing it is “paying it off” just with a different lender now. I’m sure there are many reasons why it works out well for buyers and Ford, I just pointed out a few off the top of my head.

Same lender if you want - Ford Credit.

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