"Ford Options" Mach-E Lease vs standard lease - similarities and differences

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hybrid2bev

hybrid2bev

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Thanks @hybrid2bev - any suggestions on how to move them along vs waiting for the Rep to drive down from snowy Michigan? I just emailed the bulletin locations you suggested earlier. Also, do the Options incentives/rebates differ by State? Cheers!
Sorry, I neglected to answer your other question.

If you have provided the info about where the dealer can find the Options info and they are still having issues. Then the dealer should contact their FMCC dealer rep (BDM). The FMCC reps are being provided with info to help the dealers with how set up their internal systems for balloon.

If the dealer does not call their dealer rep, then let me know and I can push from our side.
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hybrid2bev

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fwiw the 30% limit thing confuses me a bit as well as to the underlying logic.

on the other hand, I've decided that with the interest rate being so low, it makes more sense for me to invest the money that I would have gone towards that down payment and, as long as the investment is managed properly, probably come out ahead after it's all done. That money could grow and go towards the balloon at the other end and be better than up front even though it means higher monthly payments in the middle.
It's a combination of factors. Options is supposed to be structured to work like a lease so there's a down payment limit just like a lease has to ensure there is a minimum amount to finance above the residual value. There are also some funny state laws about minimum amount to finance for balloons. And as mentioned the managing of residuals as well.
 

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Sorry, I neglected to answer your other question.

If you have provided the info about where the dealer can find the Options info and they are still having issues. Then the dealer should contact their FMCC dealer rep (BDM). The FMCC reps are being provided with info to help the dealers with how set up their internal systems for balloon.

If the dealer does not call their dealer rep, then let me know and I can push from our side.
Thanks! Yeah, sales guy said they've contacted their "rep" to come help them with set up, so I assume he meant the FMCC rep. Sadly, it sounds like the rep won't be in until some time next week.
I've sent on the documentation info from you over to them today, so perhaps that will help, too.

Appreciate you answering my questions - I'll shout if I hear/learn something that says they didn't or won't contact the FMCC rep.
 

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It's a combination of factors. Options is supposed to be structured to work like a lease so there's a down payment limit just like a lease has to ensure there is a minimum amount to finance above the residual value. There are also some funny state laws about minimum amount to finance for balloons. And as mentioned the managing of residuals as well.
so you're saying Ford Credit doesn't want me to finance $1 just to get the incentive? ?

?

also who is financing balloons? how expensive are they? why are they doing so? are they going to Albuquerque every year or something? ?

??

Ford Mustang Mach-E "Ford Options" Mach-E Lease vs standard lease - similarities and differences 1613675261058
 

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@hybrid2bev : Question about the Options plan. I've seen two different assumptions on this thread. Is the balloon payment included in the total amount financed? I.e. do you pay interest on the balloon payment amount?
 


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@hybrid2bev : Question about the Options plan. I've seen two different assumptions on this thread. Is the balloon payment included in the total amount financed? I.e. do you pay interest on the balloon payment amount?
You pay interest on the entire loan amount, which includes the amount of the balloon.
 
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@hybrid2bev : Question about the Options plan. I've seen two different assumptions on this thread. Is the balloon payment included in the total amount financed? I.e. do you pay interest on the balloon payment amount?
Yes. Options is a retail loan so you are financing the whole amount.
 

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It depends on your zip code (which Ford market area you reside in not which state you live in). I know some parts of OH closer to PA get $2,500 other areas of OH get $1,000.
So, does the Ford Options incentive apply to customer-ordered vehicles. I see mention of needing to take delivery from dealer stock in the fine print.
 

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So, does the Ford Options incentive apply to customer-ordered vehicles. I see mention of needing to take delivery from dealer stock in the fine print.
It does. Customer ordered car are in dealer stock, technically. The dealer has paid (or promised to pay) for the car, and took delivery into their stock. If you (the order holder)don't buy it, they can sell it to any one.

A lot of people, including me, has chosen to go for Ford Options, and got the $2500 credit.
 

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For Ford Options, is it possible to pay the fees and sales tax in cash if your down payment has already reached the 30% limit?
Still waiting for my FE, but asked dealer to run the Options numbers ahead of time to ensure we are on the same page.

I think I understand the reasoning for a 30% down limit (i.e. the Options incentive), but dealer numbers show sales tax (roughly $5100) and fees added to the total to be financed, from which the 30% is subtracted. I was hoping to pay tax and fees up front and not have them count toward the total. I would still have the same down payment size (30% - incentives & deposit), but I would be able to lower the amount financed by 5K, and therefore have lower payments.

I've asked them to confirm this, no answer yet. If not, I guess I could pay the 5K in a couple of months and ask if they will lower payments, or invest it toward the balloon due in a few years.

I guess it is also possible that different states have different rules. No idea, really.
 
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Thx. Figured. Just seems odd to restrict down payment to 30% when u can just send whatever payment you want the first month to reduce the principal regardless. Guess they’re managing residuals/balloon to some degree.
Biggest reason to go options is to have a guaranteed sale price should you want to return the car at the end of the term. This is effectively done by fmc agreeing to forgive the balance owed in exchange for the car. If you pay down the principal you will lower that final balance due. Has been discussed here before with the contract terms (language).
 

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Biggest reason to go options is to have a guaranteed sale price should you want to return the car at the end of the term. This is effectively done by fmc agreeing to forgive the balance owed in exchange for the car. If you pay down the principal you will lower that final balance due. Has been discussed here before with the contract terms (language).
Agreed that Options gives you.....options.

Not sure the part about reducing the balance owed is right - the balloon is the balloon, and if you send in extra $, you are paying down the principal of the first 3-year or 4-year portion of the loan.

If you pay off the initial 36-month principal & interest in 12 months, not sure what happens then - I guess you could pay off the balloon at that point, or maybe just kick back for the next 23 months and make your buy/return decision after 35 months. I don't think the balloon amount would change, whether you pay it off at 12 months or 35 months.

Hopefully someone more knowledgeable can chime in here.
 

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Agreed that Options gives you.....options.

Not sure the part about reducing the balance owed is right - the balloon is the balloon, and if you send in extra $, you are paying down the principal of the first 3-year or 4-year portion of the loan.

If you pay off the initial 36-month principal & interest in 12 months, not sure what happens then - I guess you could pay off the balloon at that point, or maybe just kick back for the next 23 months and make your buy/return decision after 35 months. I don't think the balloon amount would change, whether you pay it off at 12 months or 35 months.

Hopefully someone more knowledgeable can chime in here.
while you may pay off the upfront principal of the financed portion, wouldn't there also be interest you'd have to pay for on the residual amount (since it's also principal)

@hybrid2bev Wil probably have the right answer as always. :)
 
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while you may pay off the upfront principal of the financed portion, wouldn't there also be interest you'd have to pay for on the residual amount (since it's also principal)

@hybrid2bev Wil probably have the right answer as always. :)
@buffasnow
Yes, Ford Options is a simple interest loan, it's not pre-computed interest like a lease. Daily interest is charged on the principal balance (which includes the balloon) from day 1 until the entire principal balance is zero.

You could pay down the principal balance early so that it is the same as your final balloon payment, but interest would continue to add up since the loan is not PIF. Think of it like this, Options is just like a 72 month loan except that you pay 47 monthly payments and then payments 48-72 are all due at one time in a balloon payment. Even if you have paid payments 1-47 early there is still a principal balance remaining and interest will continue to add.
 

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Sure. Here is where the dealers can find all the information about Options on the FMC Dealer site:
FMCDealer » Finance (tab) » Consumer Finance Programs (left side menu) » Ford Options

On the Ford Options page the dealer will see the Options Payment Estimator, eContract instructions, Ford Options Handbook and Fact Sheet.

Other helpful info:
Ford Options Rates
Announcement #: FDCI-25606
Program #: 21220

Ford Options Bonus Cash
Announcement #: FDCI-25700
Program #: 13896

$100 ADA Customer Bonus Cash
Announcement #: FDCI-25841C
Program #: 13924

RCL Factors
Announcement #: FDCI-25684
Program #: 60296

AXZD Plan Pricing: ECF08916, Published Feb 16, 2021
My dealer is telling me I do not qualify for the $2500 because I am choosing the options plan. Then they said if I qualified that I could only have the $2500 or the state $1500 incentive. How does that even make sense? He also told me that the sales tax is included in my monthly payment but from what I just read that is not the case. What disqualifies you from the $2500 incentive cash? and what do I need to tell this guy so that they get me on the right plan? Just these steps:

FMCDealer » Finance (tab) » Consumer Finance Programs (left side menu) » Ford Options

On the Ford Options page the dealer will see the Options Payment Estimator, eContract instructions, Ford Options Handbook and Fact Sheet.

Also, if anyone successfully purchased a Mach E in So Cal, can you please share with me what dealership you bought it from. I might have to cancel my order and change dealerships or tell mine to call yours.

Thank you everyone
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