With the electric Mustang Mach-E already in production and scheduled to begin deliveries next month, upcoming owners are getting antsy with unanswered questions. To answer some of those questions, we’ve now been revealed the Mustang Mach-E’s leasing terms and residuals.
Contrary to popular belief, the Mustang Mach-E will in fact have a leasing option through Ford’s Red Carpet Lease program. Initially it was expected to have been excluded with the introduction of a new, similarly priced, program dubbed Ford Options. Ford Options, which is also priced based on Ford’s Red Carpet Lease numbers, in short allows consumers to take advantage of the $7,500 federal tax credit only available to retail sales while keeping the price and method of ownership in line with a standard lease.
However, in what seems as an attempt to minimize confusion, Ford will also offer their traditional lease program for the Ford Mustang Mach-E. Below you’ll find the residual values used to calculate specifically Ford Options. We are yet to see standard leasing residuals but have confirmed it will in fact be an option. Ford Options is only available in 36 or 48 month long terms. Red Carpet Leasing for the Mustang Mach E is only offered at 36 or 39 month long terms.
| Mustang Mach-E Lease Residuals | 36 months | 48 months |
|---|---|---|
| Select RWD 3P | 39% | 32% |
| Select AWD 3P | 39% | 32% |
| California Route 1 RWD 4P | 41% | 34% |
| Premium RWD 3P | 40% | 33% |
| Premium RWD 4P | 41% | 34% |
| Premium AWD 3P | 40% | 33% |
| Premium AWD 4P | 41% | 34% |
| First Edition AWD 4P | 41% | 34% |
| GT AWD 4P | 39% | 32% |
Mustang Mach-E Leasing or Ford Option mileage adjustments both adjust the prices in the following ways:
If you’d like to fully price out your own lease using a lease calculator, the money factor (APR to simplify) can be found below. Again, Ford Options is only available in 36 or 48 month long terms with leasing being restricted to 36 or 39 month long terms.
| Tier | 36 | 39 | 48 |
|---|---|---|---|
| 0 | 5.40 | 5.65 | 4.95 |
| 1 | 5.40 | 5.65 | 5.36 |
| 2 | 9.40 | 9.65 | 6.35 |
| 3 | 11.40 | 11.65 | 8.55 |
| 4 | 15.40 | 15.65 | 10.94 |
| 5 | 15.40 | 15.65 | 10.94 |
*The above rates are specifically for leasing. Ford Option rates could differ.
*The 48 month rates shown above are the current program standards and could potentially be adjusted for Ford Options.
From a consumer perspective, I can’t see why anyone would opt for a traditional lease over Ford’s new Ford Options program. In hindsight, monthly payments are equal but only one allows you to take advantage of the $7,500 tax credit. The residuals themselves are not anywhere near the best but I can’t say I was expecting otherwise. With EV technology consistently improving, next gens models tend to destroy values of older EV’s. Leasing tends to be the perfect middle ground for those who want a car with low payments but don’t want to worry about being upside down on a car loan. Both leasing and Ford Options solve that by allowing you to simply turn the car in at the end of the term.
The Mustang Mach-E is fully integrated with an online experience. Those with reservations will soon have digital access to finalize their purchase decision prior to entering the dealership. Contracts for Ford Options can be generated beginning November 23rd.
The above lease residuals are specifically for the Ford Options program. The standard lease residuals could potentially be better given the exclusion of a $7,500 tax savings. Ford’s Red Carpet Lease will only be offered in 36 or 39 month terms and will offer complimentary GAP insurance. Just keep in mind, with a lease, the tax credit is off the table entirely.
1 comment
“but only one allows you to take advantage of the $7,500 tax credit.” Not entirely true. In a traditional lease, Ford Credit should get the $7,500 credit and give it back to the customer as a cap cost reduction (down payment).