Additional payment of principal balance for Ford Options

Glen

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My car is getting close, so I am (re)reading the Ford Options threads a bit closer this weekend.

I have enough cash to buy the MME outright, but I wouldn't mind putting some of that towards other uses. Say I finance using Options, put down the max allowed (currently 45%?), select a term and mileage and sign on the deal. Then, make two-four normal payments to let the whole deal settle in. Then, make a lump sum payment large enough to cover all of what I financed but not the balloon at the end. What happens after that?

It seems like it is either:
A) Ford will still require a monthly 'payment' which is just the interest on the still outstanding balloon amount.
B) Ford will still require a monthly 'payment' which is the original interest portion of the whole agreement - balloon and financed portion of the vehicle.

Why do this?
1) Ford will kick in $1000 towards the vehicle price.
2) I don't want a sizable monthly payment if I can avoid it, but I would also like to not hand over $65K for a GT if I can keep some in my hot little hands.
3) Get the benefits of a lease-like arrangement - turn in the vehicle, pay/finance the rest and keep it, whatever.

Thoughts and counterpoints welcome
I dont know what I will do yet either. My other cars I just buy and leave. My wifes bitchin "use Fords money, why use ours". So, to keep her quiet I will probly do some type of finance thing to. But being as my MME wont be here till March/April. I didnt put any study on the numbers yet to see what I might do. Best of luck on what you decide.
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ChuckA

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My car is getting close, so I am (re)reading the Ford Options threads a bit closer this weekend.

I have enough cash to buy the MME outright, but I wouldn't mind putting some of that towards other uses. Say I finance using Options, put down the max allowed (currently 45%?), select a term and mileage and sign on the deal. Then, make two-four normal payments to let the whole deal settle in. Then, make a lump sum payment large enough to cover all of what I financed but not the balloon at the end. What happens after that?

It seems like it is either:
A) Ford will still require a monthly 'payment' which is just the interest on the still outstanding balloon amount.
B) Ford will still require a monthly 'payment' which is the original interest portion of the whole agreement - balloon and financed portion of the vehicle.

Why do this?
1) Ford will kick in $1000 towards the vehicle price.
2) I don't want a sizable monthly payment if I can avoid it, but I would also like to not hand over $65K for a GT if I can keep some in my hot little hands.
3) Get the benefits of a lease-like arrangement - turn in the vehicle, pay/finance the rest and keep it, whatever.

Thoughts and counterpoints welcome
Within a couple days of signing the Ford Options contract call Ford Credit to obtain your account number. This is done by voice response, should be not need to explain to a person.

Link your account to your FordPass or log into Ford.com. Your account page will show a buyout amount. The payment schedule will show payments 1-35, or 1-47, at the monthly amount and the last payment as the balloon amount. Set your monthly payment to be by direct debit to your bank account. I assume if it shows a buyout, you are able to execute the buyout using direct payment. BUT,

I would recommend that you execute a Ford Options contract putting little down, I did $7300, and invest the cash elsewhere. 1.4% or 2.5% or 2.7%, whatever, is less then your return using the cash elsewhere. Having a high monthly payment, as long as you are approved, doesn't matter since you can use your on-hand cash to help pay it.

I'm a Finance MBA and always prefer to use other people's money.
 

ChuckA

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I dont know what I will do yet either. My other cars I just buy and leave. My wifes bitchin "use Fords money, why use ours". So, to keep her quiet I will probly do some type of finance thing to. But being as my MME wont be here till March/April. I didnt put any study on the numbers yet to see what I might do. Best of luck on what you decide.
Your wife is very correct!
 

Glen

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kennethjk

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Within a couple days of signing the Ford Options contract call Ford Credit to obtain your account number. This is done by voice response, should be not need to explain to a person.

Link your account to your FordPass or log into Ford.com. Your account page will show a buyout amount. The payment schedule will show payments 1-35, or 1-47, at the monthly amount and the last payment as the balloon amount. Set your monthly payment to be by direct debit to your bank account. I assume if it shows a buyout, you are able to execute the buyout using direct payment. BUT,

I would recommend that you execute a Ford Options contract putting little down, I did $7300, and invest the cash elsewhere. 1.4% or 2.5% or 2.7%, whatever, is less then your return using the cash elsewhere. Having a high monthly payment, as long as you are approved, doesn't matter since you can use your on-hand cash to help pay it.

I'm a Finance MBA and always prefer to use other people's money.
Why even put down 7300?
 
 




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