Has Anyone Sold a Mach-E that was financed with Ford Options?

[connoisseurr]

I'm eager to hear about owners who have sold their Mach-E that was financed with Ford Options. While the Ford Options program is treated as a retail contract but similar structure to a lease, I'm interested to learn how Ford treats these contracts.

I just sold a Ford lease (Ford Edge ST; what a nightmare that was) and am hoping some members could share their experience selling/trading-in with Ford Options. It would be great if this finance program was treated like a regular financed vehicle and I could sell it wherever/to whomever I'd like...

This will be useful when I want to refresh for a newer MY and am not locked down to only selling back to the originating Ford dealership (can dump it to a service like Vroom, Carvana and even Carmax).

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[Davedough]

It’s my understanding that it’s treated like regular financing, but I don’t have any experience to back that up. Much like you can pay off the balloon at any time, you should be able to sell it like “normal”

 

[RhodyGT]

It’s just a financing with a different amortization. At the end of the day it’s just a loan that you can pay off. From what I have seen from others that have posted there are no prepayment penalties so you should be able to sell anytime you want.

My plan is to finance through ford options to get the $2500 then immediately refinance into a local bank at 2.24%. The 1.4% options on the GT is great but the balloon payment at the end is a bit much to deal with especially since we drive over 20,000 miles a year and tend to keep cars 6-8 years.

Plus with options, I don’t think most people realize you pay the interest on the balloon balance throughout the term. What’s left at the end is just principal….so if you were to refinance the balloon at the end rather than pay it off with cash or sell it you are likely doubling your interest cost….depending on your rate.

 

[RickMachE]

Ford and other major auto companies locked out Carvana etc al earlier this year. You need to pay off lease financing yourself first. Don't know if Options is different.

Here is article on GM. https://www.cnet.com/roadshow/news/gm-financial-lease-sell-carvana-vroom/

We paid off our Fusion Energi lease then sold to Carvana.

 

[connoisseurr]

It’s my understanding that it’s treated like regular financing, but I don’t have any experience to back that up. Much like you can pay off the balloon at any time, you should be able to sell it like “normal”

I hope this is the case.

It’s just a financing with a different amortization. At the end of the day it’s just a loan that you can pay off. From what I have seen from others that have posted there are no prepayment penalties so you should be able to sell anytime you want.

My plan is to finance through ford options to get the $2500 then immediately refinance into a local bank at 2.24%. The 1.4% options on the GT is great but the balloon payment at the end is a bit much to deal with especially since we drive over 20,000 miles a year and tend to keep cars 6-8 years.

Plus with options, I don’t think most people realize you pay the interest on the balloon balance throughout the term. What’s left at the end is just principal….so if you were to refinance the balloon at the end rather than pay it off with cash or sell it you are likely doubling your interest cost….depending on your rate.

This is helpful information, thank you. I definitely won't be keeping this Mach-E for long and will probably upgrade to the MY22 I have on order. We both work from home so we don't put that many miles on our vehicles. I just dumped our Edge ST and Focus RS, and picked up a 2009 Subaru Outback XT as a lower cost backup vehicle.

The Ford dealership I'm buying the MY21 through has already stated they won't be accepting my X-Plan certificate, although I will keep trying. When the MY22 comes in, I'll sell the MY21 and use the equity (with tax credit) to fund the new MY22 Mach-E. We also get a $2500 incentive from the state of Delaware so that's very helpful on-top of the federal tax credit.

Because I'll be keeping the car for such a short period of time, Ford Options seems OK to hold-on to for the 6-8 months I'll be waiting for the MY22 to arrive.

Ford and other major auto companies locked out Carvana etc al earlier this year. You need to pay off lease financing yourself first. Don't know if Options is different.

Here is article on GM. https://www.cnet.com/roadshow/news/gm-financial-lease-sell-carvana-vroom/

We paid off our Fusion Energi lease then sold to Carvana.

They also locked out Carmax as well. Vroom said they could have purchased but because I was within Ford's hidden 120-day rule, I had no option but to sell to a Ford dealer ("buy" the vehicle and pay sales tax, then sell it back), or go back to my originating dealer to actually buy it (without paying sales tax) and then resell. We chose this option. While it was a hassle, we made $10k on-top of the residual value, which paid for our n'used Subaru Outback with some funds aside for needed maintenance

 

[Nklem]

No issue. you can sell at anytime just like any financed car. The balance owed has to be be paid.

 

[Motomax]

It’s just a financing with a different amortization. At the end of the day it’s just a loan that you can pay off. From what I have seen from others that have posted there are no prepayment penalties so you should be able to sell anytime you want.

My plan is to finance through ford options to get the $2500 then immediately refinance into a local bank at 2.24%. The 1.4% options on the GT is great but the balloon payment at the end is a bit much to deal with especially since we drive over 20,000 miles a year and tend to keep cars 6-8 years.

Plus with options, I don’t think most people realize you pay the interest on the balloon balance throughout the term. What’s left at the end is just principal….so if you were to refinance the balloon at the end rather than pay it off with cash or sell it you are likely doubling your interest cost….depending on your rate.

Why refinance to a higher interest rate. Just pay more each month which will eventually reduce your balloon amount and save you some interest at the same time.

 

[RhodyGT]

Why refinance to a higher interest rate. Just pay more each month which will eventually reduce your balloon amount and save you some interest at the same time.

Good catch...absolutely!

 

[KZ6e1e]

Good catch...absolutely!

Are you sure about this? I thought I read somewhere that if you pay more per month, you are just reducing the amount due but the balloon payment is still the same?

 

[RhodyGT]

Are you sure about this? I thought I read somewhere that if you pay more per month, you are just reducing the amount due but the balloon payment is still the same?

You might be right and maybe that's why I came to the conclusion I originally did...unfortunately I'm stuck waiting for the car so can't really dig into it until it gets here and I see real paperwork in front of me. If you can't buy it down over time then yeah I would take the $2500 and refinance.

 

[hybrid2bev]

You might be right and maybe that's why I came to the conclusion I originally did...unfortunately I'm stuck waiting for the car so can't really dig into it until it gets here and I see real paperwork in front of me. If you can't buy it down over time then yeah I would take the $2500 and refinance.

You can pay ahead.

Ford Options is a simple interest retail installment contract. For example if you choose a 36 month Options. That is like doing a 72 month contract but instead of 72 payments you are making 35 monthly payments and 1 final payment, about equal to the remaining 37 payments.

Because Options is simple interest if you pay more than your normal monthly payment it would pay down your principal balance faster - reducing your principal balance (balloon payment) to an amount lower than it would have been at the end of the monthly payment schedule term had you just paid the normal monthly payment.

 

[KZ6e1e]

You can pay ahead.

Ford Options is a simple interest retail installment contract. For example if you choose a 36 month Options. That is like doing a 72 month contract but instead of 72 payments you are making 35 monthly payments and 1 final payment, about equal to the remaining 37 payments.

Because Options is simple interest if you pay more than your normal monthly payment it would pay down your principal balance faster - reducing your principal balance (balloon payment) to an amount lower than it would have been at the end of the monthly payment schedule term had you just paid the normal monthly payment.

Guess that makes sense if you're going to keep the car/sell it independently since at the end of the term of Ford Options you could just turn the car in and not pay the balloon. (But pay the "disposal fee" of $475 Right? )

 

[macchiaz-o]

Guess that makes sense if you're going to keep the car/sell it independently since at the end of the term of Ford Options you could just turn the car in and not pay the balloon. (But pay the "disposal fee" of $475 Right? )

Correct. If you turn it in to Ford and forgo the balloon payment, there is a disposal fee. That is waived if you renew into another new Ford.

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

 

[hybrid2bev]

Guess that makes sense if you're going to keep the car/sell it independently since at the end of the term of Ford Options you could just turn the car in and not pay the balloon. (But pay the "disposal fee" of $475 Right? )

Yes but only If you return the vehicle to Ford Credit. In that case you would be responsible for the disposal fee plus any mileage and excessive wear charges. (Assuming you don’t have any late fees or remaining payments.)

 

[Neil4Real]

Yes but only If you return the vehicle to Ford Credit. In that case you would be responsible for the disposal fee plus any mileage and excessive wear charges. (Assuming you don’t have any late fees or remaining payments.)

I had thought I read somewhere that you could also keep the car, after the 36 months and just keep paying the same payment for an additional 3 years or something. Is this not the case? So you have to refi if you want to keep the car and cannot just pay the lump sum balloon?

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