hybrid2bev
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@DBC Well said.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.
@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 donāt qualify for the full $7500 tax credits, then RCL may be a better choice for you than Options. Since you donāt 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 Iām biased and want you to finance with Ford Credit no matter which of our options you choose.
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