Financing Your Lightning

[Kevin22]

Do not forget about adding the extended warranty. if you plan to keep the truck past three years or the allotted miles of the factory warranty. If you are going to keep her for longer this purchase is a must IMO. You are going to be driving an iPad on wheels. Something at some point is going to fail. Most likely about a week or so after the factory warranty expires.

When my lady picked up her new MME it was around $3600-$3900 to cover for an additional 3 or 4 years. Sorry can’t remember the exact details. Not even sure how much Ford is charging for the extended warranty for the Lighting. Maybe someone-else knows the cost of the extended warranty? Better safe than sorry.

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[petemill]

it was around $3600-$3900 to cover for an additional 3 or 4 years.

Your dealership made quite a bit on that - you can buy the extended warranty any time after purchase and from any ford dealer - here's one of the best deals out there for it. 4 years / 100,000 miles is $1340

https://www.floodfordesp.com/esp_pl...2=0&Surcharge5=0&Surcharge3=0&Submit=Continue

 

[GDN]

Do not forget about adding the extended warranty. if you plan to keep the truck past three years or the allotted miles of the factory warranty. If you are going to keep her for longer this purchase is a must IMAO. You are going to be driving an iPad on wheels. Something at some point is going to fail. Most likely about a week or so after the factory warranty expires.

When my lady picked up her new MME it was around $3600-$3900 to cover for an additional 3 or 4 years. Sorry can’t remember the exact details. Not even sure how much Ford is charging for the extended warranty for the Lighting. Maybe someone-else knows the cost of the extended warranty? Better safe than sorry.

Not really any different than an ICE version and maybe even less so - The battery is covered for 8 yr/100,000 miles and if the motors are built solid there is very very little to go wrong with the motors. I throw out a Tesla comparison, without exact numbers, but on one of the largest forums there is a very very rare note of a motor issue and Tesla covers most of those. Nothing compared to the many reports you hear with an ICE - throttle body, injectors, turbos, belts, hoses, alternator, etc. It is just a much simpler machine for repairs.

 

[Kevin22]

What the what? Somebody call someone

 

[Kevin22]

Your dealership made quite a bit on that - you can buy the extended warranty any time after purchase and from any ford dealer - here's one of the best deals out there for it. 4 years / 100,000 miles is $1340

https://www.floodfordesp.com/esp_pl...2=0&Surcharge5=0&Surcharge3=0&Submit=Continue

Thanks Pete. I think I might use this if and when I ever get my number pulled for the Lighting.

 

[beatle]

Not really any different than an ICE version and maybe even less so - The battery is covered for 8 yr/100,000 miles and if the motors are built solid there is very very little to go wrong with the motors. I throw out a Tesla comparison, without exact numbers, but on one of the largest forums there is a very very rare note of a motor issue and Tesla covers most of those. Nothing compared to the many reports you hear with an ICE - throttle body, injectors, turbos, belts, hoses, alternator, etc. It is just a much simpler machine for repairs.

+1

Non-battery/motor parts for the F150 are presumably less expensive than Tesla since they would be shared with the ICE vehicles. Other parts not shared would be the DC to DC converter, chargers, charge port, and battery heater. On Teslas those can be expensive to replace since they will not sell them to you. Hopefully Ford is not as anti right to repair as Tesla is and will allow owners to purchase all replacement parts. With this in mind, there is less need for an extended warranty unless you expect frequent failures and you do not work on the vehicle yourself.

 

[Sdctcher]

Now that the rest of the possible 2022 Lightning Order Invitations have been sent out and the bulk of the Production Dates are in the pipeline we turn again to how to pay for our new truck.

The vast majority of Deliveries will occur from May 15 - July 15.

Both Wholesale and Retail Inflation trends 2021-2022 have increased to nearly 1% per month and hopes are that they are near peaking.

The FOMC is expected to boost the Fed Rates by .5% each May 4th and June 15, before slowing down to .25% each from July to the end of the year. Since new auto finance rates closely follow the FOMC the current best rates of 2% - 4% surely will increase by at least 1% before the end of Summer.

I will have to finance my Lightning around July 15th so I am projecting my best rate will be at least 3% on a short term loan (36-48 months) if my credit can withstand the elevated monthly payments required. It is expected that the Residual Value of my Lariat will be at 50% which would place my monthly payment (36 months with a $25,000 Down Payment and $40,000 Balloon) at about $850 under the Ford Options Plan.

In my case the Ford Options Plan is a good alternative because I am planning on prepaying it and keeping my truck. I have put together my own Excel Spreadsheet that projects at varying down payments and interest rates. Ford Credit should publish the plan and rates in coming weeks and the old MME Calculator is no longer available.

With Inflation and Recession fears infecting the market in coming months some sources may well hold down rates as the market for buyers of vehicles begins to dry up. My estimate of FMC short term Options ranges from 1.99% - 2.99% although a 0% would be a Godsend. Even better would be a Rate War between Banks, Credit Unions, and FMC.

Thoughts?

 

[sotek2345]

Now that the rest of the possible 2022 Lightning Order Invitations have been sent out and the bulk of the Production Dates are in the pipeline we turn again to how to pay for our new truck.

The vast majority of Deliveries will occur from May 15 - July 15.

Both Wholesale and Retail Inflation trends 2021-2022 have increased to nearly 1% per month and hopes are that they are near peaking.

The FOMC is expected to boost the Fed Rates by .5% each May 4th and June 15, before slowing down to .25% each from July to the end of the year. Since new auto finance rates closely follow the FOMC the current best rates of 2% - 4% surely will increase by at least 1% before the end of Summer.

I will have to finance my Lightning around July 15th so I am projecting my best rate will be at least 3% on a short term loan (36-48 months) if my credit can withstand the elevated monthly payments required. It is expected that the Residual Value of my Lariat will be at 50% which would place my monthly payment (36 months with a $25,000 Down Payment and $40,000 Balloon) at about $850 under the Ford Options Plan.

In my case the Ford Options Plan is a good alternative because I am planning on prepaying it and keeping my truck. I have put together my own Excel Spreadsheet that projects at varying down payments and interest rates. Ford Credit should publish the plan and rates in coming weeks and the old MME Calculator is no longer available.

With Inflation and Recession fears infecting the market in coming months some sources may well hold down rates as the market for buyers of vehicles begins to dry up. My estimate of FMC short term Options ranges from 1.99% - 2.99% although a 0% would be a Godsend. Even better would be a Rate War between Banks, Credit Unions, and FMC.

Thoughts?

Regardless of how the details work out with interest rates, I still think Ford Options is the best play for the risk transfer to Ford. This is the first year of a new product - there may be issues that kill resale value (think Bolt). The Gen 2 lightning in ~2025 may also be such a big improvement that it kills the resale of Gen 1. I will let Ford take that risk, thank you very much!

For our Mach-e, we went with Ford options. 1.4% interest and a $2,500 rebate vs. 1.49% from our Credit union (and then only if we went for 4 years or under). Our plan is not to keep it, but to trade up to whatever the latest version of the Mach-e is in 4 years, or another EV if it strikes our fancy. EV tech is moving too fast to plan on keeping these vehicles long term.

 

[gorwell]

This is the first year of a new product - there may be issues that kill resale value (think Bolt).

Bolt wasn't really a "first year" issue. Just a defect in the manufacturing process no one seemed to notice for 5 years.

That is just a normal car failure at that point... No different than any other cars that get recalled for safety issues.

Ford made a recall earlier this year for 215K trucks and SUVs due to Brake fluid can leak, causing longer stopping distances. This was from vehicles from 2016 - 2018.

EVs are not really "new" tech anymore, but are still subject to the manufacturing failures that happen w/ any car.

Also, Bolts resale value wasn't killed. It was more like postponed while GM replaced the batteries. It's resale value is currently at it's highest point.

https://www.cargurus.com/Cars/price-trends/Chevrolet-Bolt-EV-d2397


So far the Mach-e hasn't has any key issues and I would expect the same from the F150L. Part of the reason why ford built the mach-e and F150L the way they did was to leverage as much existing tech as possible. This would limit failure. Ford also said it applied learnings from Mach-e to the F150L (except for charging speeds, apparently )

Tech is moving too fast to plan on keeping these vehicles long term.

Not tech, but range, maybe...

However, this is highly dependent on use case.

A car w/ a range of 200-300 miles covers ~95% of use cases for the majority of people.

The standard range F150L will be just as good today as it is in 10 -15 years for me, and for a lot of people.

I have an ioniq5 for longer road trips.

Those that tow, need more range (lots of long distance travel, winter weather), would be better served waiting or planning a trade-in.

 

[Ruination]

EV tech isn't moving that fast...

 

[LightningShow]

I don’t foresee any “reasonably” priced EV with significantly more than 300 miles of range until a new type of battery tech is released. Might be 7-10 years. Might be more. I wouldn’t be holding out for a 400 mile EV for under 70k-ish. Definitely not a truck.

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