Ford to eliminate electric vehicle purchase option at the end of lease

[Skidrowe]

This actually has happened to a FB member who got the Lightning delivered to his dealer and the banks won't finance him unless he comes up with 30% down due to the large loan vs. income.

He is trying to find a co-buyer to sign the loan app.

Of course, his dealer wouldn't mind taking possession of the customer's Lightning...

Your FB comment made me decide to go join one of the FB lighting groups. I first read about an hour of posts and comments. I've decided not to join for mental health reasons. The amount of misinformation and incorrect comments based entirely on speculation is rampant. There's a little bit of that here in this forum, but is trumped fairly quickly by knowledgeable people.

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[RickLightning]

Your FB comment made me decide to go join one of the FB lighting groups. I first read about an hour of posts and comments. I've decided not to join for mental health reasons. The amount of misinformation and incorrect comments based entirely on speculation is rampant. There's a little bit of that here in this forum, but is trumped fairly quickly by knowledgeable people.

The joys of social media...

 

[RickLightning]

This actually has happened to a FB member who got the Lightning delivered to his dealer and the banks won't finance him unless he comes up with 30% down due to the large loan vs. income.

He is trying to find a co-buyer to sign the loan app.

Of course, his dealer wouldn't mind taking possession of the customer's Lightning...

That's a good thing.

Ford Credit is a very easy lender. They want people to have vehicles. If you make payments, they'll keep approving you. If you get in difficulty, they work with you to keep the vehicle in your hands, because they really don't want it back.

After buying the Mach-E last July, we got an email in January that we were preapproved for 6 figures. So did others. That's ludicrous, we're retired and our income, less mortgage, less Mach-E payment would never work at a bank. Our 2022 came in 3 1/2 weeks ago, and we applied via Ford Credit (no way to access pre-approval from January). Dealer finance rep called, but it was to say "you didn't unlock the right credit bureau". Of course I did in fact do what he said correctly, he misstated to Ford which credit bureaus I unlocked (2 of the 4). 1 minute later he called back and said we were good.

So we have monthly car payments of $2,400 plus a mortgage. That's a significant portion of our income. Yet, no problem.

Some people can't afford an $80,000 truck. Ford Options makes them think they can, but when the balloon comes due they'll be another 3 or 4 years for maybe 8 years total, and paying close to $10,000 in interest. That's "you can't afford this truck".

 

[metroshot]

Your FB comment made me decide to go join one of the FB lighting groups. I first read about an hour of posts and comments. I've decided not to join for mental health reasons. The amount of misinformation and incorrect comments based entirely on speculation is rampant. There's a little bit of that here in this forum, but is trumped fairly quickly by knowledgeable people.

Isn't that the truth!

FB is notorious for misinformation, rumors, politics, and fabricated rants.

I am moderator on one of the Lightning forums and you would not believe how much BS goes around.

It's almost a full time job trying to keep FB members from a virtual fist fight, to shutting down T shirt sales and deleting adult entertainment sites/links...

 

[RickLightning]

Isn't that the truth!

FB is notorious for misinformation, rumors, politics, and fabricated rants.

I am moderator on one of the Lightning forums and you would not believe how much BS goes around.

It's almost a full time job trying to keep FB members from a virtual fist fight, to shutting down T shirt sales and deleting adult entertainment sites/links...

Oh, so you're the one that got rid of the PORN!

 

[JLee]

Same, but my credit union is still offering 1.99.percent financing for 72 months. Just hope it doesn't go up too much before I take delivery.

May I ask where? I was going with DCU at 2.49% for 65mo but I'd happily take a lower rate!

 

[sotek2345]

May I ask where? I was going with DCU at 2.49% for 65mo but I'd happily take a lower rate!

CAPCOM FCU - it is a local one.

 

[broncoaz]

This actually has happened to a FB member who got the Lightning delivered to his dealer and the banks won't finance him unless he comes up with 30% down due to the large loan vs. income.

He is trying to find a co-buyer to sign the loan app.

Of course, his dealer wouldn't mind taking possession of the customer's Lightning...

Seems like someone shouldn’t be buying a new truck then. If you can’t write a check for it you shouldn’t be buying an $80K truck, these things aren’t exactly a “need” for most people.

 

[astricklin]

It is going to be interesting to see the impact of higher rates and lack of incentives on the Lightning. Will demand soften? Will people accept delivery and then flip them? Or, will they accept delivery, then down the road realize they cannot afford it?

Just one example, not using actual figures, to show payment and interest difference.

$80,000 truck, 0.9% (last year's Mach-E loan rate), 4 year loan - payments of $1,697.47, $1,478.63 total interest.

$80,000 truck, 2.5% rate, 4 year loan - payments of $1,753.12, $4,149.89 total interest.

$80,000 truck, 5% rate, 4 year loan - payments of $1,842.34, $8,432.49 total interest.

I bought both my 2021 and 2022 Mach-Es with 0.9% financing (no $2,500 options rebate here). Without Ford Options, many will be priced out of this truck.

I don't think anyone is going to be priced out on the lariat and higher, especially based on interest alone. The difference is about $150 a month. I'm going to say that if you can afford a $1700 car payment, you can afford $1850. And if that $150 month breaks you, you probably shouldn't be buying an $80k vehicle. On a $40k loan, the difference is only about $60 and sure, there will be some that going from $700 to $750 will be a deal breaker, but not many.

Now, there's probably going to be a lot of people who get priced out based on the fact that it is $75,000 for the extended range truck.
I'm sure there's a lot of reservations based on the $40k base price and how many of those people have actually gone into the build tool and realized how much it costs to get that 320miles.
The scenario that I see impacting more reservations is people have just had a change in circumstances and they aren't going to be able to buy a vehicle at all, or will need to opt for a cheaper one. Job losses, medical bills, had to suddenly replace a vehicle sooner, just about anything you can think up could impact someone's budget more so than an extra small percentage on their payment.

 

[awilli1010]

https://autos.yahoo.com/ford-eliminates-end-lease-purchase-133100508.html

 

[Prufrock]

How about an early buyout?

 

[MickeyAO]

Does this apply to Ford Options also?

 

[Pioneer74]

Does this apply to Ford Options also?

Probably not, because it isn't a lease. I think the vehicle is titled to the buyers for Options.

Also, I don't think Ford Options is worth it on the Lightning. There is no incentive or special incentive offered like when the Mach-E launched.

 

[astricklin]

Probably not, because it isn't a lease. I think the vehicle is titled to the buyers for Options.

Also, I don't think Ford Options is worth it on the Lightning. There is no incentive or special incentive offered like when the Mach-E launched.

The advantage of the options plan is that if the value of the current gen truck tanks after the next gen truck is released and you are upside down at the 3 year mark, you can turn in the truck and walk away. Ford takes the hit in lost equity.

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