Ending Ford Options Early

[bncwhite]

No one can say what the world scene will be like in 36 months but if it is still like this with supply issues and delays, it will be hard to time getting the next model year Mach-E, or some future unannounced vehicle, I order to be here on time when the balloon payment is due.

@hybrid2bev my wife and I are trying to decide between traditional Ford financing and Ford Options. We were considering traditional financing because if a future model year Mach-E has a better feature/color/design we like better than our MY21, it’d be easy to trade the vehicle in at any time by ordering the one we want and trade in when the car arrived from the factory.

I saw on another thread where you said to think of Options like a standard 60 month simple interest loan but there is only 35 payments and one balloon at the end.

So, if we wanted to trade at month 20 in a 36 month Options plan for a new Mach-E, how does that work since we are in the middle of the Options?

Do we pay the remaining months’ payments before we can trade it in?

What happens if we have excessive mileage because we chose 12K and the car is already at 36K?(hypothetical numbers) My current understanding is we don’t have to worry about it because we are trading in so we’d have to just pay some possible negative equity if it existed.

Or does this all simplify down to a contract that says Ford will buy back the vehicle at month 36 or month 48 and if I decide to upgrade before that time, then the vehicle is treated like a normal trade-in, with possible negative equity coming out of pocket, so should choose Options and call it a day? ? TIA

We’ve been a single-car family for a few months now waiting for our delayed Mach-E and don’t want to repeat this headache if we have to complete the full options lease before we can switch/trade vehicles.

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[generaltso]

Options is a loan, not a lease. You can trade it in or sell it at any time and pay off the balance of the loan (including the balloon). If you do that, the mileage is irrelevant.

 

[RickMachE]

This ^^^^

Mileage only matters if you hand Ford the keys, like a lease.

 

[hybrid2bev]

No one can say what the world scene will be like in 36 months but if it is still like this with supply issues and delays, it will be hard to time getting the next model year Mach-E, or some future unannounced vehicle, I order to be here on time when the balloon payment is due.

@hybrid2bev my wife and I are trying to decide between traditional Ford financing and Ford Options. We were considering traditional financing because if a future model year Mach-E has a better feature/color/design we like better than our MY21, it’d be easy to trade the vehicle in at any time by ordering the one we want and trade in when the car arrived from the factory.

I saw on another thread where you said to think of Options like a standard 60 month simple interest loan but there is only 35 payments and one balloon at the end.

So, if we wanted to trade at month 20 in a 36 month Options plan for a new Mach-E, how does that work since we are in the middle of the Options?

Do we pay the remaining months’ payments before we can trade it in?

What happens if we have excessive mileage because we chose 12K and the car is already at 36K?(hypothetical numbers) My current understanding is we don’t have to worry about it because we are trading in so we’d have to just pay some possible negative equity if it existed.

Or does this all simplify down to a contract that says Ford will buy back the vehicle at month 36 or month 48 and if I decide to upgrade before that time, then the vehicle is treated like a normal trade-in, with possible negative equity coming out of pocket, so should choose Options and call it a day? ? TIA

We’ve been a single-car family for a few months now waiting for our delayed Mach-E and don’t want to repeat this headache if we have to complete the full options lease before we can switch/trade vehicles.

As per usual @generaltso nails it.

If you trade in early the dealer will pay off the loan and the mileage only impacts your trade in value, not how much you owe.

Ford Options choices at the end of the contract term are:
1. Return – Transfer ownership of the vehicle to Ford Credit (like a lease turn-in, with mileage, excessive use charges and disposition fee)

2. Renew – Trade-in/Sell the vehicle, any accumulated equity may be available for use as down payment. (no mileage charges)

3. Retain – Payoff or refinance the balloon note amount through Ford Credit. (no mileage charges)

 

[Nklem]

36 months Options is figured like a 72 month traditional loan that you have to pay the remaining principle balance at payment 36.

48 months Options is figured like an 84 month traditional loan that you have to pay the remaining principle balance at payment 48.

 

[RickMachE]

In principle, it's principal.

 

[bncwhite]

Thanks for the help. I love this forum and how much everyone helps!

So if/when I trade in before Options ends, the trade-in value will go toward the ballon amount and the principal of the remaining payments. If I have negative equity, I pay that difference, correct?

 

[RickMachE]

Thanks for the help. I love this forum and how much everyone helps!

So if/when I trade in before Options ends, the trade-in value will go toward the ballon amount and the principal of the remaining payments. If I have negative equity, I pay that difference, correct?

Yes. But that would likely be a bad financial decision, as you could likely sell it for more privately.

 

[bncwhite]

Yes. But that would likely be a bad financial decision, as you could likely sell it for more privately.

That works too! This takes some stress off that financing decision! ?

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