Current State Of Ford Options?

[hybrid2bev]

I don't think my dealership has any clue what they are doing with Ford Options. I just spoke with the finance person for the first time instead of my salesperson and the first words out of her mouth were "so you want to lease the mach e". Then she tried to tell me that Ford Options financing doesn't have an interest rate, it has a money factor since it is a lease and not a purchase. Then she told me that even if it is technically financing because of how the taxes are paid it will be a lease for tax purposes and not a purchase.

I'm pretty sure that every one of those statements is wrong? Could someone verify?

"so you want to lease the mach e". - wrong

Ford Options financing doesn't have an interest rate, it has a money factor since it is a lease and not a purchase - wrong

technically financing because of how the taxes are paid it will be a lease for tax purposes and not a purchase - wrong

Yep that checks out, 100% wrong.

I think you need to DM me and we'll have someone contact them.

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[Kistra]

"so you want to lease the mach e". - wrong

Ford Options financing doesn't have an interest rate, it has a money factor since it is a lease and not a purchase - wrong

technically financing because of how the taxes are paid it will be a lease for tax purposes and not a purchase - wrong

Yep that checks out, 100% wrong.

I think you need to DM me and we'll have someone contact them.

DM sent. Thank you!!!

 

[Mickey the T]

I don't think my dealership has any clue what they are doing with Ford Options. I just spoke with the finance person for the first time instead of my salesperson and the first words out of her mouth were "so you want to lease the mach e". Then she tried to tell me that Ford Options financing doesn't have an interest rate, it has a money factor since it is a lease and not a purchase. Then she told me that even if it is technically financing because of how the taxes are paid it will be a lease for tax purposes and not a purchase.

I'm pretty sure that every one of those statements is wrong? Could someone verify?

All wrong statements. But my salesperson was equally clueless about how Options worked. (Although very smug in his wrongness.) The finance manager *did* understand options so if you can break past the salesperson that might be helpful.

 

[Kistra]

All wrong statements. But my salesperson was equally clueless about how Options worked. (Although very smug in his wrongness.) The finance manager *did* understand options so if you can break past the salesperson that might be helpful.

Everyone at my dealership has been very nice and open about the fact that they have no idea what this program is. That is how I got to the finance person. But they tell me they will go look things up and then still come back with wrong answers which isn't inspiring a lot of confidance.

 

[deadduck]

I'm pretty sure that every one of those statements is wrong? Could someone verify?

https://www.ford.com/finance/finance-options/ford-options

 

[rgonyer]

It's no wonder, probably because the dealer doesn't seem to understand the program. Their calculations are way off.

Take the dealers numbers and try this calculator:

https://www.macheforum.com/site/threads/poll-ford-options-vs-finance.2883/post-92089

Dunno if you'd have time today or not to verify, but this is what I just replied to the dealer with (I used the spreadsheet you quoted to come up with the residual values):


'21 GT's using the options plan have a $1k incentive built in, and a 1.4% interest rate (assuming 15,000 miles/year, 48 month plan)

MSRP: $61600
Options Incentive -$1000
Tax: $3080
TTL/DOC: $1000 (ballpark)
Downpayment/Deposit: $10000

Total to Finance: $54,680
Residual Value: $21560.00 ($61600 * 35%)
Finance Amount $33,120 (54,680-21560 )
47 Months at 1.4% on $33,120 should be around $725/month with a balloon of $21560

 

[tacobellcow]

Update on my 2021 select: after someone from Ford Motor Company graciously called the dealership, they were able to figure out the Ford Options pricing. They sent an invoice that shockingly included the $1,000 rebate but had the financing at 4.25%. (they also forgot to calculate in my down payment, X plan, and also tried to charge me $299 for aftermarket wheel locks).

The difference between the 4.25% financing and the standard 2.25% financing would cost me about $2,800 on the life of the loan + $299 for wheel locks is $3,100 they are trying to get me for. Going to be doing my best to negotiate this one. Hoping for the best.

 

[generaltso]

Update on my 2021 select: after someone from Ford Motor Company graciously called the dealership, they were able to figure out the Ford Options pricing. They sent an invoice that shockingly included the $1,000 rebate but had the financing at 4.25%. (they also forgot to calculate in my down payment, X plan, and also tried to charge me $299 for aftermarket wheel locks).

The difference between the 4.25% financing and the standard 2.25% financing would cost me about $2,800 on the life of the loan + $299 for wheel locks is $3,100 they are trying to get me for. Going to be doing my best to negotiate this one. Hoping for the best.

Also, make sure the doc fee is not more than $100.

 

[hybrid2bev]

Dunno if you'd have time today or not to verify, but this is what I just replied to the dealer with (I used the spreadsheet you quoted to come up with the residual values):


'21 GT's using the options plan have a $1k incentive built in, and a 1.4% interest rate (assuming 15,000 miles/year, 48 month plan)

MSRP: $61600
Options Incentive -$1000
Tax: $3080
TTL/DOC: $1000 (ballpark)
Downpayment/Deposit: $10000

Total to Finance: $54,680
Residual Value: $21560.00 ($61600 * 35%)
Finance Amount $33,120 (54,680-21560 )
47 Months at 1.4% on $33,120 should be around $725/month with a balloon of $21560

Residual should be 34%. So your payment estimate is a bit low.

 

[tacobellcow]

Also, make sure the doc fee is not more than $100.

This makes sense. They have it at $230 now which seems high. But fees are always high!

What's the tactic here? Asking politely? I don't want to lose the car over petty things like a doc fee or wheel locks, but I feel like they shouldn't want lose a customer over it either.

 

[generaltso]

This makes sense. I've never actually negotiated doc fees before because I thought it was just one of those things consumers get screwed on like fees on a phone plan. I understand there is an administrative cost/paperwork/printer ink for these deals, but realistically, everything has been done digitally and those prices should be baked into the cost.

Are others succesfully getting these doc fees down to $100 and wheel locks removed? By just asking politely? What a time to be alive!

You shouldn't need to negotiate the doc fee. X-Plan limits it to a maximum of $100.

 

[physib]

You shouldn't need to negotiate the doc fee. X-Plan limits it to a maximum of $100.

So I heard this everywhere, but just in case the dealer feigns ignorance, is there any source?

 

[hybrid2bev]

So I heard this everywhere, but just in case the dealer feigns ignorance, is there any source?

https://www.fordpartner.com/partnerweb/jsp/howitworks/fordpartner_rules.htm

 

[generaltso]

So I heard this everywhere, but just in case the dealer feigns ignorance, is there any source?

Document Fees

• Dealers will be permitted to assess up to $100 in documentary fees on each delivery to an eligible purchaser under the terms of the Plan, unless otherwise provided by state or local laws or regulation. Each dealer is responsible for complying with applicable laws or regulations.
• Unless otherwise provided by state or local laws or regulation: In states where dealers are not permitted to charge as much as $100 for doc fees, dealers would be capped at the lesser amount as provided by the state. In states that permitted more than $100, dealers would be permitted to charge the Plan customer $100. In states that permitted more than $100 and also required that all customers be charged the same amount, dealers may charge the Plan customer $100 and indicate any additional fees have been paid by Ford Motor Company or Lincoln Motor Company as part of the AXZD-Plan Program dealer reimbursement on the buyer's order.

https://www.fordpartner.com/partnerweb/jsp/howitworks/fordpartner_rules.htm

 

[tacobellcow]

Document Fees

• Dealers will be permitted to assess up to $100 in documentary fees on each delivery to an eligible purchaser under the terms of the Plan, unless otherwise provided by state or local laws or regulation. Each dealer is responsible for complying with applicable laws or regulations.
• Unless otherwise provided by state or local laws or regulation: In states where dealers are not permitted to charge as much as $100 for doc fees, dealers would be capped at the lesser amount as provided by the state. In states that permitted more than $100, dealers would be permitted to charge the Plan customer $100. In states that permitted more than $100 and also required that all customers be charged the same amount, dealers may charge the Plan customer $100 and indicate any additional fees have been paid by Ford Motor Company or Lincoln Motor Company as part of the AXZD-Plan Program dealer reimbursement on the buyer's order.

https://www.fordpartner.com/partnerweb/jsp/howitworks/fordpartner_rules.htm

This forum is seriously the most helpful and informative forum I've ever been a part of. Thank you all.

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