WHY? Ford Prepares Mustang Mach E Owners For MASSIVE Depreciation Hit

Ford planned to start delivering the Mustang Mach-E in November, but customers are still waiting. In some places, it has already postponed that to 2021. While we wait, some intriguing news keeps coming, such as Ford’s bulletin of lease residual values. MachEClub member revealed it expects the electric CUV to retain only 39 percent of its MSRP after three years.

The information was revealed by the member ReturnOfTheMack, and the worst values are for the Select and GT trim levels. The First Edition, Premium, and California Route are slightly better, at 40 percent of MSRP.

malba2367 - 11/19/2020 12:19:25 PM

+2 Boost

Because they will have to lower the price by $7500 when the tax credits are gone.

carloslassiter - 11/19/2020 2:42:27 PM

+2 Boost

Bummer.

ricks0me - 11/19/2020 3:34:29 PM

0 Boost

Someone explain to me please..... With the numbers put forth in the article, is it better to buy or lease?

Agent001 - 11/19/2020 5:31:25 PM

+2 Boost

Well, lease prices will be high unless Ford subvents the rate and residual. Could be a 1k per month lease if they don't. And if you buy it, in three years you'll be LUCKY to get 39% of what you paid back. In other words, this is a lose/lose scenario.

001

vdiv - 11/19/2020 6:08:34 PM

+2 Boost

Begs the question if that revelation is intentional to subdue demand.

supermoto - 11/19/2020 7:52:05 PM

0 Boost

Seems that Ford is playing it safe with such a low residual since they have no idea what the selling price will be. At the end of the lease, if the actual used car prices are much higher than the lease residual, you can always buy the car at the residual price and sell it for a profit. I've done this with a BMW before.

Vette71 - 11/20/2020 12:20:50 PM

0 Boost

A look at the Spies article on depreciation that came after this, it's obvious that EVs and Hybrids depreciate faster than ICE vehicles. No doubt it has to do with battery replacement that looms ever closer with use. Basically they are consumables.