Current State Of Ford Options?

[MONDO]

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

Any idea which “state or local laws” would give the dealer an exemption to this program rule?

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[bncwhite]

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.

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

Since bullet point two shows the dealer would be reimbursed by FMC for anything above the $100, why wouldn't a dealer participate and cooperate with a X-Plan member when they purchase the vehicle?

 

[rgonyer]

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

Thanks for checking it out for me, at least it seems to be in the ballpark. The 35% came from that spreadsheet so that may be an error. The extra 1% off the residual works out to about $15 extra per month. If my dealership can't figure this out, is there someone they can call to explain? Thanks again for your assistance! I wish the online calculator was still working properly, because that's what I was getting before, and what lead me to the plan in the first place.

 

[physib]

Another question: I know the T1/0 rate for GT is 1.4%, but what about lower tiers?

 

[physib]

Since bullet point two shows the dealer would be reimbursed by FMC for anything above the $100, why wouldn't a dealer participate and cooperate with a X-Plan member when they purchase the vehicle?

Reads to me like they only get reimbursed if the state explicitly forces a >$100 doc fee.

 

[bncwhite]

Reads to me like they only get reimbursed if the state explicitly forces a >$100 doc fee.

I'm in Oklahoma and it is one of the states that allows the dealer to set the price so as far as this state goes, I can't think of a reason a dealer wouldn't mind the X-Plan, unless they didn't want the extra paperwork.

 

[hybrid2bev]

Any idea which “state or local laws” would give the dealer an exemption to this program rule?

No, but the exemption would be if the state max doc fee was required to be lower than $100. See the second bullet point. Dealer are allowed to charge the lessor of the state max or $100.

 

[hybrid2bev]

Thanks for checking it out for me, at least it seems to be in the ballpark. The 35% came from that spreadsheet so that may be an error. The extra 1% off the residual works out to about $15 extra per month. If my dealership can't figure this out, is there someone they can call to explain? Thanks again for your assistance! I wish the online calculator was still working properly, because that's what I was getting before, and what lead me to the plan in the first place.

The spreadsheet is set up for 12,000 miles, be sure to change that to 15,000.

If the dealer has questions they can call their Ford Credit representative.

Or if you DM me I can arrange to have the Ford Credit rep contact them.

 

[MONDO]

No, but the exemption would be if the state max doc fee was required to be lower than $100. See the second bullet point. Dealer are allowed to charge the lessor of the state max or $100.

Ah, I need to brush up on my reading comprehension skills lol. Thank you!

I recall my dealer mentioning $500 doc fee and saying it was required for x-plan. Hopefully I’ll be able to politely remind them of the program rules when the time comes.

 

[rgonyer]

The spreadsheet is set up for 12,000 miles, be sure to change that to 15,000.

If the dealer has questions they can call their Ford Credit representative.

Or if you DM me I can arrange to have the Ford Credit rep contact them.

Thanks so much. Yes I did have it changed to 15,000, maybe a glitch in the spreadsheet where 15k miles is set to 35% instead of 34%

 

[hybrid2bev]

Thanks so much. Yes I did have it changed to 15,000, maybe a glitch in the spreadsheet where 15k miles is set to 35% instead of 34%

Hmmm, did you change the model to GT on the top of the spreadsheet. It worked correctly for me. ?‍

 

[rgonyer]

Hmmm, did you change the model to GT on the top of the spreadsheet. It worked correctly for me. ?‍

You are 100% correct... that is what I missed!

Last question for me about the Options loan- Are we allowed to pay ahead on the loan as we would with a traditional loan, or can we not pay for ANY of the residual value before the balloon is due?

 

[Kistra]

Thank you so much @hybrid2bev! The finance person at my dealership called me back today said she had a class this morning and now knew all about Ford Options. I am getting the 1000 in bonus cash for going with Ford Options and 2.25% APR and picking the car up on Saturday!

 

[hybrid2bev]

You are 100% correct... that is what I missed!

Last question for me about the Options loan- Are we allowed to pay ahead on the loan as we would with a traditional loan, or can we not pay for ANY of the residual value before the balloon is due?

There’s no prepayment penalty.

I’m paying more than my normal monthly payment too.

 

[tacobellcow]

Another question: I know the T1/0 rate for GT is 1.4%, but what about lower tiers?

Others have said 2.25%. There was an individual on Monday, and one on Thursday of this week in this thread that got the 2.25% plus $1,000 rebate.

I have a select and they offered me 4.25% I told them I wanted to get the 2.25% financing and showed them the difference in monthly payment. They ending up agreeing to much lower monthly payment. And while they didn't explicitly state 2.25% financing - I'm pretty sure where that's at for Select.

I'm not 100% on premium. But it would have to be no higher than 2.25%.

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