Ford financing nightmare?

[Anton]

Hello there,

Some preface... What I'm trying to make sure here is that I don't get f***ked by the dealership/finance guys out of money. So I'm asking for advice on how I should handle this situation moving forward. Please help me get out of this mess...

At time of purchase of my Mach-E the guys said that Ford Options was not an option in California (wrong). I said lets go ahead with regular financing because I wanted to take the car home with me that day. After speaking with their GM about Ford Options, he said that they will re-do my contract. Effectively cancelling the current contract and starting a new one with Ford Options. I will be the first one at their dealership to get Ford Options. After briefly meeting with the finance guy today to look at some preliminary numbers, to my surprise the Ford Options monthly payment total came out to be exactly the same as my regular financing - ~$1,050/mo. Something smells fishy here...

Car sale price - $64,000 (includes $8,000 ADM)
Regular finance purchase -72 months, 2.49%, $6,400 down.
Ford Options Plan - 48 months, 2.49%, 10,500 miles/yr, $6,400 down.
Credit score -~770.

Upon checking and comparing to the estimating payment on the Ford Build-a-Mach-E website I saw some MAJOR differences. Their estimate was that I should be paying roughly $680/mo with a sale price of $64,000 and $6,400 down (website did give me a estimated APR of 1.4%, but shouldn't be that big of a difference).

Now that I look back on the day of purchase there was a major red flag that I looked past. The finance guy said that I will only be able to get the 2.49% if I get the extended warranty and GAP protection. My original APR was like 3.49%. This would only raise my monthly bill by $10. "No brainer, right?" (His words). I said sure, let's add the extended warranty and GAP protection... There was also some fees involved during the process that I looked past (I will post my original contract details below).

What I think is happening now is that they are trying to get me to pay the same fees and buy the extended warranty + GAP protection with the Ford Options plan. Hence the big price difference... Since they are cancelling my original contract, can I avoid purchasing the extended warranty, gap, and argue for them to not include these absurd fees (e.g. $4,995 optional fee to the Ford Motor Service Company, I guess this is the extended warranty)?

Here's my original contract details (in process of getting nullified/cancelled in favor of a Ford Options contract):

EXTENDED WARRANTY

GAP:

VEHICLE CLOSING STATEMENT:

In summary:
1. Can I reject the extended warranty and GAP protection from my original contract agreement which will be nullified prior to starting the Ford Options agreement? Dealership is trying to keep these...
2. Is it true that to get a lower APR I have to get extended warranty?
3. What APR should I be expected to pay with a ~770 credit score and 10% down?
4. I'll take any advice you can give me.

 

[RickMachE]

1) Yes
2) No
3) Whatever they want to charge you

 

[benk016]

I'll tell you right now, don't do that service contract. You can buy it yourself online for much cheaper. Any more than this is 100% profit for your dealer.

 

[Anton]

I'll tell you right now, don't do that service contract. You can buy it yourself online for much cheaper. Any more than this is 100% profit for your dealer.

I will try with all my might to get them to not include the Extended Warranty and GAP. I just feel like they can do and say whatever they want to get the most money out of me. I have to come equipped, can you share the link where you found that $1,100 price for Premium Care?

 

[Anton]

1) Yes
2) No
3) Whatever they want to charge you

1. Will fight for the extended warranty + GAP to not be included.
2. So shady... That the finance guy said I have to get Extended Warranty to get the lower APR... During the process I kept on asking if he's sure about this and he kept insisting...
3. Ugh... This sucks.

 

[benk016]

I will try with all my might to get them to not include the Extended Warranty and GAP. I just feel like they can do and say whatever they want to get the most money out of me. I have to come equipped, can you share the link where you found that $1,100 price for Premium Care?

FloodFordESP.com
Its a Ford Dealer selling them at almost cost to anyone that wants them.

There is no requirement on Ford Financing to buy the service plan. They just make money from you buying it. So they will push it all they can.

@hybrid2bev may be able to help you out on your financing questions.

 

[macchiaz-o]

2. So shady... That the finance guy said I have to get Extended Warranty to get the lower APR... During the process I kept on asking if he's sure about this and he kept insisting...

Yes, he's sure because he needs you to do this to make his numbers, or so he thinks.

Read your paperwork carefully. I believe you have a few days (a week?? maybe it depends on the state you live in??) to cancel the service plan and get that money back.

That gives you a bit of leverage if you want to make this "deal" and then cancel it the next day. Be sure to do so in writing, certified, etc.

 

[Anton]

Read your paperwork carefully. I believe you have a few days (a week?? maybe it depends on the state you live in??) to cancel the service plan and get that money back.

That gives you a bit of leverage if you want to make this "deal" and then cancel it the next day. Be sure to do so in writing, certified, etc.

Upon checking all my paperwork, the finance guy didn't even give me the "extended warranty agreement paperwork". Yet, he had my sign that "I received it". So I don't know the details of that agreement.

 

[benk016]

Upon checking all my paperwork, the finance guy didn't even give me the "extended warranty agreement paperwork". Yet, he had my sign that "I received it". So I don't know the details of that agreement.

This is from the Flood Ford ESP page, but its the same at any dealer. I believe you do have to cancel through the dealer you ordered it from though.

Can I cancel my Ford Protect Contract?
Yes. For most states if you cancel within 30 days and no services have been rendered you can receive a full refund minus a $75 cancellation fee. After 30 days the refund will be pro-rated by time and mileage.

And here is a blank contract so you can see all the fine print on it.
https://www.floodfordesp.com/Ford ESP/Forms/Ford_ESP_Sample_Contract.pdf

 

[Mari76]

Upon checking all my paperwork, the finance guy didn't even give me the "extended warranty agreement paperwork". Yet, he had my sign that "I received it". So I don't know the details of that agreement.

When we bought our MME my husband made the mistake of purchasing the extended warranty and 2 other services. All three came to about $8000 added to the car. I didn’t realize what he had done until he got home and I went over the contract. He went back the next day to cancel, they practically begged for him to keep at least one but he declined. Let’s just say that Huntington Beach ford are not too fond of my husband now, It was a headache dealing with them. You have 30 days to cancel for full refund in Ca.

I see you’re from the central valley, I am too! Tulare to be exact But now in San Diego County. I still make frequent visits to see family and haven’t seen any other MMEs.

 

[Anton]

When we bought our MME my husband made the mistake of purchasing the extended warranty and 2 other services. All three came to about $8000 added to the car. I didn’t realize what he had done until he got home and I went over the contract. He went back the next day to cancel, they practically begged for him to keep at least one but he declined. Let’s just say that Huntington Beach ford are not too fond of my husband now, It was a headache dealing with them. You have 30 days to cancel for full refund in Ca.

I see you’re from the central valley, I am too! Tulare to be exact But now in San Diego County. I still make frequent visits to see family and haven’t seen any other MMEs.

I'm glad you guys were able to resolve this. I'll see what happens with this "new contract" that they give me. It gives me some calmness to know that I have 30 days to cancel these "additions".

I lived by Tulare for a year. Nice to hear you guys are in San Diego now. Lovely city.

 

[generaltso]

So after milking you for an $8,000 ADM, they also are strong arming you into buying an overpriced service contract and gap insurance? It might be better to walk away.

 

[Xlch59]

Gap insurance may be a good idea with size of the ADM and the down payment.

 

[Sail04]

1. Will fight for the extended warranty + GAP to not be included.
2. So shady... That the finance guy said I have to get Extended Warranty to get the lower APR... During the process I kept on asking if he's sure about this and he kept insisting...
3. Ugh... This sucks.

I live in the SJ valley. May I ask who was the dealer? I made the decision not to purchase in Fresno/Tulare/Kings counties. I’m assuming I should be glad.

 

[Anton]

So after milking you for an $8,000 ADM, they also are strong arming you into buying an overpriced service contract and gap insurance? It might be better to walk away.

This wasn't my order, but a car on the lot that somebody backed out of. And the 8k ADM was on top of the old price, prior to the 2k price increase. So technically only a 6k ADM on top of what was my order price (same model, color, etc.) that I still have open.

Is walking away a realistic option? I've accumulated about 300 miles on this already. And tinted the front windows.

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