Ford Mach-E Leases Have A Major Disadvantage

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Senior Pricing Analyst

As CarsDirect’s resident pricing analyst, Alex offers must-know analysis of pricing & incentives to those looking to buy or lease a car. His consumer-oriented coverage of the latest trends and breaking news has been featured in publications such as Car and Driver, Motor Trend, Automobile Magazine and Autoblog.

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, Senior Pricing Analyst - April 15, 2021

Even though the all-new Mustang Mach-E has an MSRP that's comparable to the Volkswagen ID.4, an important quirk in lease incentives may give VW shoppers a huge advantage when it comes to getting the most for their money.

While both EVs qualify for a $7,500 federal tax credit, Ford has told Mach-E dealers that it won't be passing along the tax credit when consumers choose to lease their vehicle. That's a very different approach compared to the ID.4.

VW Credit recently sent a bulletin to dealers stating the ID.4 offers lessees a $7,500 "Zero Emissions Bonus," which is just another name for lease cash. In contrast, there is no such incentive to bring down the cost of the Mach-E.

Because the tax credit goes to the lender, EV lessees generally rely on automakers to pass it along. Ford has its reasons. In an email to CarsDirect, Brad Carroll, Director of Global Communications for Ford Credit, stated:

"Due to complex tax realities, Ford Credit would get less than the $7,500 federal tax credit that the typical owner would realize if they purchased the car."

Caroll noted that this is why the company is offering a lease-like choice called Ford Options Plan. While this can be an affordable way to bring home a Mach-E, it puts the onus on consumers to ensure they qualify for the full amount.

On paper, the Mach-E has an MSRP of $43,995 with destination after last year's price cut. The ID.4 starts at $41,190. Both models significantly undercut the Tesla Model Y, which starts at $51,690 following yet another price increase.

Even though Mach-E residual values are quite good and feature up to $11,000 in incentives when buying, leasing became an option relatively late and isn't showcased on Ford's website. ID.4 leases are a bit more straightforward.

At the moment, VW's featured deal on the 2021 ID.4 PRO is $379 for 36 months with $3,573 due at signing. While that's nowhere close to being as cheap as the Chevy Bolt, the Mach-E is arguably a completely different animal.

We're not entirely sold on Ford's explanation. After all, other brands seem to have no problem passing along the full value. For example, the Hyundai Kona Electric ranks among the best deals on an EV with $10,750 in lease cash.

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, Senior Pricing Analyst

As CarsDirect’s resident pricing analyst, Alex offers must-know analysis of pricing & incentives to those looking to buy or lease a car. His consumer-oriented coverage of the latest trends and breaking news has been featured in publications such as Car and Driver, Motor Trend, Automobile Magazine and Autoblog.

Follow On: Twitter

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