Additional payment of principal balance for Ford Options

[macchiaz-o]

But I got a $2500 incentive that in effect covered the total interest.

Your $2,500 incentive was a contribution from Ford towards the down payments made against the sale total for your vehicle. Yes, it reduced the size of your loan -- thus it also reduces the total interest that was scheduled for your loan (assuming you make all payments as scheduled).

If you want to think of it as covering the amount you owe as interest, that's a way to look at it, I guess.

But in terms of specific details on how the loan works, this is not correct. The incentive meant that you reduced the amount of money being lent to you, and as a result, you've reduced the amount you need to repay (in principal and in interest) over the next 3 or 4 years.

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[Glen]

As I was told to buy it. Triple A credit required for 36 months at 0 percent. 42 months at .09 percent and 72 months for 1.09 percent. My wife has me looking to do one of these options. She gets pissed when I just buy it outright. I dont want to lease. But I have months to wait for the car. Just ordered it on Oct. 18th.

 

[macchiaz-o]

As I was told to buy it. Triple A credit required for 36 months at 0 percent. 42 months at .09 percent and 72 months for 1.09 percent. My wife has me looking to do one of these options. She gets pissed when I just buy it outright. I dont want to lease. But I have months to wait for the car. Just ordered it on Oct. 18th.

The numbers you see today don't really matter.

You ordered the vehicle ten days ago. Months from now, when the vehicle is here and you are finalizing a sale, that is when the financing options are considered.

Also, Ford Options is not a lease. It's a purchase loan, but with an added option to return the vehicle in lieu of the large, final payment. If you don't exercise that option, then it's a loan and own the vehicle outright once you've paid off your debts.

 

[Glen]

The numbers you see today don't really matter.

You ordered the vehicle ten days ago. Months from now, when the vehicle is here and you are finalizing a sale, that is when the financing options are considered.

Also, Ford Options is not a lease. It's a purchase loan, but with an added option to return the vehicle in lieu of the large, final payment. If you don't exercise that option, then it's a loan and own the vehicle outright once you've paid off your debts.

Thank you. Am learning all the time. ?

 

[ChuckA]

Your $2,500 incentive was a contribution from Ford towards the down payments made against the sale total for your vehicle. Yes, it reduced the size of your loan -- thus it also reduces the total interest that was scheduled for your loan (assuming you make all payments as scheduled).

If you want to think of it as covering the amount you owe as interest, that's a way to look at it, I guess.

But in terms of specific details on how the loan works, this is not correct. The incentive meant that you reduced the amount of money being lent to you, and as a result, you've reduced the amount you need to repay (in principal and in interest) over the next 3 or 4 years.

I understand you’re correct. I made my equivalency afte closing. I only put $7300 down and like the balloon concept. The $2500 was a nice extra incentive when none was needed..

 

[silverelan]

I understand you’re correct. I made my equivalency afte closing. I only put $7300 down and like the balloon concept. The $2500 was a nice extra incentive when none was needed..

@hybrid2bev don't listen to him! The $2500 is what sealed the deal!

 

[generaltso]

42 months at .09 percent and 72 months for 1.09 percent.

Just an FYI - you need to move those decimal points one place to the right.

 

[macchiaz-o]

Just an FYI - you need to move those decimal points one place to the right.

And other things. ? But it doesn't matter until the car arrives.

 

[Glen]

Just an FYI - you need to move those decimal points one place to the right.

? note to self..glasses. And theres the dealers scribble to me.

Just an FYI - you need to move those decimal points one place to the right.

? note to self, be more carefull. And there is the dealers scribble to me. Another option I

just plum forgot. Like others said. Those today numbers mean nothing till the car is here. But some good finance numbers.

 

[ChuckA]

@hybrid2bev don't listen to him! The $2500 is what sealed the deal!

$7500 tax credit sealed the deal.

 

[Glen]

$7500 tax credit sealed the deal.

Dont forget, no tax when getting plates.

 

[generaltso]

Dont forget, no tax when getting plates.

That‘s a New Jersey thing.

 

[Glen]

That‘s a New Jersey thing.

Finally, one little give back to folks in Jersey. Meanwhile my home taxes are raised to 17 grand a year. I did see on another thread some guy posted Biden might raise the EV credit to $12,500. Have to keep our eyes peeled for that one. ?

 

[ChuckA]

Dont forget, no tax when getting plates.

Not in CT. Our state motto is “everything’s taxable”.

 

[tman]

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

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