[fyrdude]

I noticed this when I placed the official order. Seems like a pretty good plan. With most leases, the fed credit goes to the manufacturer. This is basically a lease, but provides a loophole that allows you to get the credit up front. The only difference I see is that with a lease, you pay sales tax only on the amount you actually pay. With this balloon option, the sales tax for the full price of the truck will be included in the purchase price. If you pay it off at the end, you won't have to pay taxes to DMV as you do with a lease buyout.

 

[GDN]

These seem really low and surprising. The used truck market has always been strong and I don't think has ever lost that kind of value in just 3 years/36K miles. With the world of EV's, the batteries will take that 7 to 12% hit in that timeframe, but otherwise these trucks should be like new. The motors shouldn't really show any wear or have any issues, put a new set of tires on it and it should be like a new truck.

 

[ChasingCoral]

 

[SCVLightning]

I wonder if these factor in a new model built on an EV platform to be available by then. That would inevitably lower the value of the 22MY.

 

[buccaneer]

Makes me lean toward leasing with numbers like that. Demand for EV will exceed supply for a solid 5 years is my estimate. Buy out the lease and then sell on private used market. 90% of potential buyers will neither know nor care about the newer platform.

I'm already holding a reservation for Silverado EV, will do same for next gen Lightning. Something should be available at the end of yr 3 or yr 4.

But more likely will keep my gen 1 and move it into work fleet, bump out another gasser and collect govt rebate for taking another ICE off the road. I'll be looking at that shrinking semimonthly statement from the card lock and wanting to make it smaller again.

 

[ChasingCoral]

I wonder if these factor in a new model built on an EV platform to be available by then. That would inevitably lower the value of the 22MY.

Ford has been doing leasing for a long time. I'm sure they are taking future vehicle plans into account. However, they also see how much demand is out there.

 

[Voltz]

Aren’t residuals set independently outside the automaker to make the paper marketable?

 

[ChasingCoral]

Aren’t residuals set independently outside the automaker to make the paper marketable?

Residuals are set by Ford Credit (per an expert working at Ford Credit).

 

[Voltz]

Residuals are set by Ford Credit (per an expert working at Ford Credit).

Thanks, I'll file this under, "Another Lie The VW Dealer Told Me."

 

[FM_Jack]

Am I wrong in thinking it is weird that the higher trim being less valuable over time? I always felt that the used market seemed to favor the one with more options. The Raptor being a good example of one that doesn't lose much value over time. (and I know in that example it is more about the use of that specific trim versus just options)

or am I thinking of this wrong because this has to do with Financing? (which I hate)

 

[GDN]

Am I wrong in thinking it is weird that the higher trim being less valuable over time? I always felt that the used market seemed to favor the one with more options. The Raptor being a good example of one that doesn't lose much value over time. (and I know in that example it is more about the use of that specific trim versus just options)

or am I thinking of this wrong because this has to do with Financing? (which I hate)

I initially thought the same thing, but it was pointed out, these are percentages. So the percentage may be a couple of points lower, but it is a percentage of a much higher amount.

 

[EFX4]

Thanks, I'll file this under, "Another Lie The VW Dealer Told Me."

Why am I not surprised VW was mentioned here, lol.

 

[fyrdude]

Am I wrong in thinking it is weird that the higher trim being less valuable over time? I always felt that the used market seemed to favor the one with more options. The Raptor being a good example of one that doesn't lose much value over time. (and I know in that example it is more about the use of that specific trim versus just options)

or am I thinking of this wrong because this has to do with Financing? (which I hate)

Pretty much any car, the more the options, the lower percentage of residual value. Simply as an example, If a base model car with no options has a residual value at 50% of its original price, generally the options on that that same car will have about 35 to 40% value in residual value. Thus, if you lease a $50,000 car with no options, Residual is $25,000. If you put $50,000 in options on the car (roughly the difference between buying a Pro model versus a Platinum (rounded figures here for easy analysis), the residual value is likely only increased by another $17,500 to $20,,000. This is typical on nearly all cars. For some, options are worth even less than 35%.

 

[BroncoAZ]

55% residual is crap, go look at any Toyota product to see decent residuals. And the residuals on the Mach E are disgustingly low. I’m assuming that the federal incentives figure into the low residual values, so maybe the numbers will improve when the incentives go away.

 

[GDN]

55% residual is crap, go look at any Toyota product to see decent residuals. And the residuals on the Mach E are disgustingly low. I’m assuming that the federal incentives figure into the low residual values, so maybe the numbers will improve when the incentives go away.

If the fed incentives are included that just says Ford plans on doing what Tesla did and take that money to their own bottom line/pocket rather than the customer, which is where the govt intended it. Tesla adjust the Model 3 price down, almost to the day each time their credit dropped by half. Their price adjustment wasn't exactly on the dollar, but it was a few thousand each time.

To say the least - I want to study this plan a little deeper, I'm not sure I trust it yet. However, if the trucks are worth quite a bit more than the residual (and they should be), that is just the indicator you need to keep it and pay it off or refinance the balloon payment and then trade it or sell it as an owned truck.

 

[fyrdude]

If the fed incentives are included that just says Ford plans on doing what Tesla did and take that money to their own bottom line/pocket rather than the customer, which is where the govt intended it. Tesla adjust the Model 3 price down, almost to the day each time their credit dropped by half. Their price adjustment wasn't exactly on the dollar, but it was a few thousand each time.

To say the least - I want to study this plan a little deeper, I'm not sure I trust it yet. However, if the trucks are worth quite a bit more than the residual (and they should be), that is just the indicator you need to keep it and pay it off or refinance the balloon payment and then trade it or sell it as an owned truck.

I've always hated the Fed tax credit for that reason. It's never gone to the consumer. It just allowed the manufacturer to charge more for the vehicle, then market its price as the "after credit" price. The government should have just incentivized the manufacturers based on the number of EV's they sold. Not every consumer qualifies for the tax credit that really never met the intention of reducing EV costs for buyers. They should do away with and force manufacturers to have to reduce the prices to be more competitive with ICE vehicles. Then EVERYONE benefits, not just the select group that qualify for the Fed tax credit. And again, they're not really saving any money because the manufacturers jacked up the EV prices instead. The Volt went from a $40,000+ car when the tax credit existed for GM, then magically went down to $29,000 once the tax credit was phased out. Thus, GM simply charged more in the early days, because they could. So the money still went in their pockets rather than the consumer's pockets.