California FE X-Plan Price, Discounts and Ford Options Financing

[eltonlin]

Here's my "final" tabulation, hope I got it right:

MSRP: Premium Base	47,000.00
MSRP: FE Option	8,600.00
MSRP: AWD	2,700.00
MSRP: Rapid Red Option	400.00
MSRP: Total	58,700.00
X-Plan Price: Premium @ 98% + 275	57,801.00
Destination and Delivery	1,100.00
X-Plan: FE AWD RR	58,901.00
CA Sales Tax @9.5% (excl Dest and Delivery)	5,386.60
CA Doc Fees	55.00
CA License Plate Fee	100.00
CA Annual Registration Fee	175.00	Varies
FE Price before Discounts	64,617.60
Dealer discount for CA Clean Fuel Reward	(1,500.00)
Initial Deposit	(500.00)
Federal Tax Break		Moved to 2021 Tax
CA CVRP tax break (Will it work for MachE?)		Moved to 2021 Tax
$100 for signing some form for OTA	(100.00)	Form EFC08670ccpadf
Other Discounts and Incentives?		Any others?
FE Price Net of Discounts	62,517.60
Residual value 34+4% for 7500 mi/yr @ Ford Options	(24,554.69)	38%
Ford Options Retail Bonus #13770	(2,500.00)
Cash Down (no?)	(6,000.00)
Ford Connected Charging Station
Net Amount Financed	29,462.91
Interest Rate for Options	2.25%​
For 48 months, payments at 2.25%	642.42	Actually 47 payments, then a balloon
Total Of Payments	30,836.22
Tax Credit for charger install @ $1500	(500.00)	https://parts.ford.com/shop/ProductDisplay?storeId=1405&parent_category_rn=[Ljava.lang.String;@c50c9c03&productId=13221001&urlRequestType=Base&categoryId=61583&langId=-1&catalogId=251
Federal Tax Break	(7,500.00)	From 2021 Tax
CA CVRP tax break (Will it work for MachE?)	(2,000.00)	From 2021 Tax

Looks quite good from my review. I would note that sales tax does vary based on what county in California you are in (LA is the highest at 9.5%, SF is still at 8.5% IIRC).

I'm going to use this sheet to start with my calculations and dealer discussions.

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[VegStang]

I just started looking at the Ford Options since that appears to be the only way to access the $2500 incentive. Weirdness with the mileage calculation since it changes monthly payment @ same APR, just curious to see what is factored into the final balloon payment, as in, is any interest preloaded etc. I'm sure I'll figure it out, but so far amount financed + payments + interest + balloon ≠ 36 mo interest + payments + selling price.

May have to wait until I see the actual contract to get the full scoop on total paid since this is based on a standard retail financing contract. Just want to determine what the actual "balloon payment" will be should someone choose to pay it off a couple years early.

Also CA tax rate is where you live/register the car, not where the dealer is. (Going down to Anaheim a few years ago to pick up a car didn't reduce my Silicon Valley 9.25% rate. )

 

[eltonlin]

I just started looking at the Ford Options since that appears to be the only way to access the $2500 incentive. Weirdness with the mileage calculation since it changes monthly payment @ same APR, just curious to see what is factored into the final balloon payment, as in, is any interest preloaded etc. I'm sure I'll figure it out, but so far amount financed + payments + interest + balloon ≠ 36 mo interest + payments + selling price.

May have to wait until I see the actual contract to get the full scoop on total paid since this is based on a standard retail financing contract. Just want to determine what the actual "balloon payment" will be should someone choose to pay it off a couple years early.

Also CA tax rate is where you live/register the car, not where the dealer is. (Going down to Anaheim a few years ago to pick up a car didn't reduce my Silicon Valley 9.25% rate. )

I think you are seeing changes in monthly payments because of changes in residuals based on mileage, as residual % goes up/down based on expected mileage.

Believe final balloon amount is all principal, but will also depend on any over mileage fees and wear and tear costs etc.

 

[VegStang]

That's what I see with the residual. Interesting that choosing higher mileage results in a slightly less overall cost for those paying the balloon at the end of 3 years. Still seems like the balloon is something more than just principal according to my calculations so far.

I need a car balloon loan calculator Just curious how much of that $2500 savings I can keep if the Ford Options is paid off after 12 months or less.

This was helpful, but not attuned to Ford Options: https://www.thecalculatorsite.com/finance/calculators/carloancalculator.php

According to one balloon calc I found online looks like with as much down as possible there is $1841 in interest (2.25%) in the 3 years- starts @ $60 a month), and $314.85 added to the Balloon (guesstimate.) Using a lease vs. purchase calculator the lease shows a total added cost of about $800 over 36 mo so maybe that's a better approximation overall for those of us that plan on keeping the car and doing a large down (since Options limits that amount.)

I think you are seeing changes in monthly payments because of changes in residuals based on mileage, as residual % goes up/down based on expected mileage.

Believe final balloon amount is all principal, but will also depend on any over mileage fees and wear and tear costs etc.

 

[back_at_it_19]

I think you are seeing changes in monthly payments because of changes in residuals based on mileage, as residual % goes up/down based on expected mileage.

Believe final balloon amount is all principal, but will also depend on any over mileage fees and wear and tear costs etc.

 

[back_at_it_19]

Can someone weigh in again or direct me to a conversation I think I remember re how sales tax applies to lease vs. options vs. sale? With options we have to pay all the tax up front, correct?

And same question re: fed tax credit. Does it lower red carpet lease payments bc Ford gets it?

 

[DBC]

Can someone weigh in again or direct me to a conversation I think I remember re how sales tax applies to lease vs. options vs. sale? With options we have to pay all the tax up front, correct?

And same question re: fed tax credit. Does it lower red carpet lease payments bc Ford gets it?

Options is a sales installment contract so most jurisdictions treat it just like a sale. In these cases the tax on the entire purchase price is due at the time of the sale. For leases tax is due on the lease payment (that's not exactly technically true but effectively true). NOTE: Options provides a discount which will offset, or be more than, the sales tax on the residual.

With respect to the federal tax payment and leasing, the tax credit, or some portion of it, is applied to increase the residual. This lowers monthly payments (monthly payments are based on the difference between the purchase price and the residual) but makes the buy out price very unattractive. Also seems the interest rate on RCL is high. With Ford Options you get the $7500 tax credit. A bit like cash back.

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