Down payment on Ford Options?

[MrClean]

Hey All,

First of all, apologies if this has been covered somewhere else. I could not find what I was looking for.

My GTPE is being built as I type, so I am trying to line up all my ducks before it gets here. Yes, I understand it could still be quite a while. I will probably go the Ford Options route because of the incentive and the flexibility at the end of the contract. I’ve never leased a car before, so this is new to me. Outside of a lower monthly payment, are there advantages to putting a big chunk down on this car? If I was going to outright buy it, I’d probably be putting between $25-35k down. Thanks in advance for the voice of experience.

Jim

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[hybrid2bev]

Hey All,

First of all, apologies if this has been covered somewhere else. I could not find what I was looking for.

My GTPE is being built as I type, so I am trying to line up all my ducks before it gets here. Yes, I understand it could still be quite a while. I will probably go the Ford Options route because of the incentive and the flexibility at the end of the contract. I’ve never leased a car before, so this is new to me. Outside of a lower monthly payment, are there advantages to putting a big chunk down on this car? If I was going to outright buy it, I’d probably be putting between $25-35k down. Thanks in advance for the voice of experience.

Jim

Ford Options is not a lease.

More money down means you'll have lower monthly payments. But the available APR is so low you may want to consider investing it instead.

 

[Marc S]

I don’t know if this holds true with ford options but it’s never a good idea to put a lot of money down on a “lease”. For one, as mentioned above you’re better off taking that down payment and investing it and two, if you total the car, insurance will cover the car, but you have now lost all that money you put down.

 

[generaltso]

if you total the car, insurance will cover the car, but you have now lost all that money you put down.

Not true with Options. You own the car (and the equity). Options is just a loan.

 

[RickMachE]

This Ford Options thing sure is hard for many to understand.

It's a loan, with a balloon payment. And, you can hand Ford the keys when the balloon is due.

 

[connoisseurr]

As @hybrid2bev mentioned about the rates being low, I decided to put down the value of the federal tax credit I was eligible to receive ($7,500 back in 2022, based upon my tax liability). This included:

• $500 Ford.com deposit
• $1,000 Ford Options incentive
• $6,000 via credit card (Navy federal had a bonus 5% cash back running for the month of December so I used a CC to get $300 cash back).

Most may disagree with the use of a CC but the dealership's minimum, ironically, was $6000 and I paid the balance off the next day when it posted.

 

[kindofblue]

As @hybrid2bev mentioned about the rates being low, I decided to put down the value of the federal tax credit I was eligible to receive ($7,500 back in 2022, based upon my tax liability). This included:

• $500 Ford.com deposit
• $1,000 Ford Options incentive
• $6,000 via credit card (Navy federal had a bonus 5% cash back running for the month of December so I used a CC to get $300 cash back).

Most may disagree with the use of a CC but the dealership's minimum, ironically, was $6000 and I paid the balance off the next day when it posted.

Smart move indeed. And you'll get the $7500 tax credit that covers that down payment.

 

[Maquis]

As @hybrid2bev mentioned about the rates being low, I decided to put down the value of the federal tax credit I was eligible to receive ($7,500 back in 2022, based upon my tax liability). This included:

• $500 Ford.com deposit
• $1,000 Ford Options incentive
• $6,000 via credit card (Navy federal had a bonus 5% cash back running for the month of December so I used a CC to get $300 cash back).

Most may disagree with the use of a CC but the dealership's minimum, ironically, was $6000 and I paid the balance off the next day when it posted.

That’s unusual. Every dealership I’ve dealt with (not just Ford) had a MAXIMUM they would take on a credit card, usually about $2K.

 

[Marc S]

Not true with Options. You own the car (and the equity). Options is just a loan.

That’s what I thought, Just wasn’t sure. It’s a confusing plan. Acts like a lease and works like a loan. But you do get that Fed Tax Credit and you wouldn’t get it with a standard lease

 

[Dancefreak]

Also to note if confused on the difference...Ford Options does not have an acquisition fee ($650ish) like a lease. But you do pay a slightly higher return fee if you turn the car back in. ($475 options vs $395 lease). Waived if you buy/lease another Ford.

 

[connoisseurr]

That’s unusual. Every dealership I’ve dealt with (not just Ford) had a MAXIMUM they would take on a credit card, usually about $2K.

It's typically a dealership-family set limit. I've seen all different limits across many different brands.

 

[MrClean]

Thanks, guys!

 

[heywardjr]

I was informed by my Ford sales guy whose been there 15 years that the dealership has an agreement with American Express so that when people use that card specifically, the dealer pays no percentage to Amex. So, he cleared me to use my AMEX card for the cash portion of my deal with them and then finance the rest using the 0% for 36 months. That way I get points on my Amex account and can use that for anything I want.

 

[Maquis]

It's typically a dealership-family set limit. I've seen all different limits across many different brands.

It does vary, but I've always seen a limit. The post I was replying to implied that the MINIMUM was $6K!

 

[connoisseurr]

It does vary, but I've always seen a limit. The post I was replying to implied that the MINIMUM was $6K!

Yeah that's me not typing clearly on my iPhone. Ironically, $6,000 was the MAXIMUM that dealership offered - so it worked out really well for me

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