hybrid2bev

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This is a hard question for @hybrid2bev because he has institutional reasons why he doesn't want to be seen as giving advice.

The short answer is that, while there is always a downside to everything -- Ford Options included -- and a lot depends on personal circumstances, Ford Options checks a lot of boxes. Here are some quick comparisons:

Compared to straight financing you pay a higher interest rate and may have to refinance if you decide to keep the vehicle. On the other hand you have the option to bail if you don't like the vehicle, you get a lower price, and you have lower monthly payments. For most people: Advantage Ford Options.

Compared to leasing you likely have to pay sales tax on the residual but you get a discount on the price, a much more attractive buyout price, and a much lower interest rate. For most people: Big Advantage Ford Options.

Compared to a cash buy it's better. Just take the incentive and then buy it without a prepayment penalty. For probably everyone: Clearly Ford Options.
@DBC Well said.

@machefan

Most of the downsides and benefits to Options are the same arguments made for leasing vs. retail financing.

RCL is supposed to have lower monthly payments than Options.

If you donā€™t qualify for the full $7500 tax credits, then RCL may be a better choice for you than Options. Since you donā€™t have qualify for the tax credits to take advantage of them via RCL.

Options (like leasing) has mileage limits and excess wear charges if you return the vehicle to Ford Credit.

As stated above the tax treatment of Options is more like normal retail than RCL. So depending on your location and situation it could be an advantage or disadvantage.

The APR is higher on Options than the available APR programs. But Options has the bonus cash available.

Which method you choose to finance your purchase is a personal decision based on your own situation and priorities. Obviously Iā€™m biased and want you to finance with Ford Credit no matter which of our options you choose.
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UW2

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I just checked on the X-Plan and noticed that the First Edition is not listed under the trim column. I'm hoping that is because the First Edition is an accessory group to the Premium. Any insight?

1610079280196.png
Yes, confirmed from ford
 

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Does anyone know if the Options Incentive is based upon state of residence or dealer location? The current $1,500 difference could be enough to catch a cheap flight to a different dealer. My plan to is to pay about 50% down and pay off the rest within 2 years, so I will almost certainly take a rebate incentive over a better interest rate.

Also, it's been a LONG time since I bought a new car from a dealer. Assuming I have X Plan, I'll be paying the MSRP, minus 2%, plus $1,100 delivery, plus $275 max in other dealer fees, plus sales tax assessed on all of that. Right? Anything else? I think I pay title and registration fees direct to the DMV when I register the car - not the dealer - right?
 

methorian

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Does anyone know if the Options Incentive is based upon state of residence or dealer location? The current $1,500 difference could be enough to catch a cheap flight to a different dealer. My plan to is to pay about 50% down and pay off the rest within 2 years, so I will almost certainly take a rebate incentive over a better interest rate.

Also, it's been a LONG time since I bought a new car from a dealer. Assuming I have X Plan, I'll be paying the MSRP, minus 2%, plus $1,100 delivery, plus $275 max in other dealer fees, plus sales tax assessed on all of that. Right? Anything else? I think I pay title and registration fees direct to the DMV when I register the car - not the dealer - right?
Can't make more than like 25-30% downpayment on Options as far as I'm aware. Word is that you can pay it off without penalty though (just give it a few months so your dealer doesn't get a kick back).
 

hybrid2bev

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Does anyone know if the Options Incentive is based upon state of residence or dealer location? The current $1,500 difference could be enough to catch a cheap flight to a different dealer. My plan to is to pay about 50% down and pay off the rest within 2 years, so I will almost certainly take a rebate incentive over a better interest rate.

Also, it's been a LONG time since I bought a new car from a dealer. Assuming I have X Plan, I'll be paying the MSRP, minus 2%, plus $1,100 delivery, plus $275 max in other dealer fees, plus sales tax assessed on all of that. Right? Anything else? I think I pay title and registration fees direct to the DMV when I register the car - not the dealer - right?
Incentives are based on the customers address. If you want the Ford Options Bonus cash ($1000 or $2500 depending on your location) Options does have a 30% max down at inception as stated above. Normally you arrange all of the registration/tags via the dealer, you need the vehicle to be licensed/insured to drive it off of the lot.
 
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JoeSmoeFromIDontKnow

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Speaking of max down payment... @hybrid2bev says "30%". But the Ford website fails to communicate that consistently.

For example: https://www.ford.com/finance/finance-options/ford-options
In the video at the 1:47 mark, it shows down payment can be up to 25% maximum.
Down further on the same web page is says 30% maximum.
Whereas, on the Ford options plan calculator for the Mach-e build and price web page, it allows me to enter in a $22895 down payment of $56440 which is around 40% maximum. Also, the calculator doesn't include my state incentives (NY=$2000). It looks bad when comparing it to the Tesla site which includes state incentives within their calculator.

I couldn't find anything official in writing concerning paying it off early without penalty. I want to avoid showing up at a dealer unprepared. I don't want to make a foolish decision or misunderstand the fine print because of pressure to buy on the spot. Can you tell that I suffer from dealer anxiety?

Maybe it's just me, but much of Fords communication is vague and inconsistent which leaves the door open for dealers to change just about anything at the time of sale.
 

hybrid2bev

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Speaking of max down payment... @hybrid2bev says "30%". But the Ford website fails to communicate that consistently.

For example: https://www.ford.com/finance/finance-options/ford-options
In the video at the 1:47 mark, it shows down payment can be up to 25% maximum.
Down further on the same web page is says 30% maximum.
Whereas, on the Ford options plan calculator for the Mach-e build and price web page, it allows me to enter in a $22895 down payment of $56440 which is around 40% maximum. Also, the calculator doesn't include my state incentives (NY=$2000). It looks bad when comparing it to the Tesla site which includes state incentives within their calculator.

I couldn't find anything official in writing concerning paying it off early without penalty. I want to avoid showing up at a dealer unprepared. I don't want to make a foolish decision or misunderstand the fine print because of pressure to buy on the spot. Can you tell that I suffer from dealer anxiety?

Maybe it's just me, but much of Fords communication is vague and inconsistent which leaves the door open for dealers to change just about anything at the time of sale.
The prior version of Options had a 25% down payment limit, it has since been updated to 30%.

Ford Mustang Mach-E A, Z, X plan discount pricing for Mach-E 1610817366124


There should be no pre-payment penalty. Options is written on the normal retail installment contracts. Look for this highlighted line on your contract.

Example: (be sure to read your contract before signing)
Ford Mustang Mach-E A, Z, X plan discount pricing for Mach-E 1610817444828


and in the fine print:

Ford Mustang Mach-E A, Z, X plan discount pricing for Mach-E 1610817537692
 

generaltso

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Hmm. The downpayment includes rebates? I guess that means up to $2500 comes off the 30% youā€™re allowed to put down?
 

mamejunkie

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Dumb finance question...if there is no pre-payment penalty, why have a max down payment limit? I know its to keep the principle at some level where the interest earned makes sense for the company. But as a consumer, we can just pay it off or a bigger lump sum into the first payment right?

Or re-phase the comment...if a consumer wants to get around the max down payment, they just pay more afterwards right?

Is there a limit or conditions to getting the $2500 incentive? I can get the Ford Option and just pay the whole thing off in 6...3...1 month?
 

generaltso

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But as a consumer, we can just pay it off or a bigger lump sum into the first payment right?
Especially when theyā€˜re going to allow a one-time recalculation for people who want to incorporate their tax credit into their payment schedule.

The value of my trade-in will likely be more than 30% of the MME price. I assume that means the dealer would cut me a check for the difference if I canā€™t apply it all to the down payment. But then I guess I could apply that and the $7500 tax credit during a later refinance. I probably wouldnā€™t, but Iā€™d have to run the numbers.
 

back_at_it_19

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So I have a question. If I like Options and intend to buy it out later, why not just choose the lowest mileage option? Just the risk of overage charges later?
 

hybrid2bev

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So the 30% max must be based on the total price of the car. Does that include tax?
It depends, that is going to vary by state as the contracts can be different. I believe it's based on what ever is included in your 'Line (1)' Total Cash Price amount. So work with your dealer to figure that out.

Here is an example from MI (contracts can vary by state so read yours):

Ford Mustang Mach-E A, Z, X plan discount pricing for Mach-E 1610819772385
 

generaltso

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So I have a question. If I like Options and intend to buy it out later, why not just choose the lowest mileage option? Just the risk of overage charges later?
If youā€™re definitely going to buy it out, the mileage options are irrelevant. The lower mileage has a lower monthly payment, but a higher balloon payment. It all evens out (with the exception of a small difference in interest).
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