Ford financing nightmare?

[Anton]

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.

Lithia Ford Lincoln of Fresno
Things seem to be moving in the right direction after I spoke with their GM, Brent. But it should have never come to this in the first place...

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[Anton]

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

Can you provide a scenario where the GAP is a good thing?

 

[generaltso]

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

Wait, you already bought it? Then you don’t really have much leverage. But you can at least cancel the overpriced service plan with Ford.

 

[generaltso]

Can you provide a scenario where the GAP is a good thing?

Gap insurance will cover the difference if you wreck the car and you owe more than it’s worth. Considering your down payment was less than the ADM, that‘s a definite possibility.

 

[Anton]

Wait, you already bought it? Then you don’t really have much leverage. But you can at least cancel the overpriced service plan with Ford.

Yes, I already bought it. We really don't have any Mach-E coming in to the Central Valley, CA. They haven't had any more come in since I swooped mine up 12 days ago.

 

[benk016]

Can you provide a scenario where the GAP is a good thing?

If your car is totaled, and they decide its worth less than you owe, GAP coverage pays for the difference so you're not on the hook for it.

Traditionally new cars lost considerable value as soon as you buy it. Combined that with the longer financing that is offered can put you underwater as soon as you buy it and stay underwater for a few years. But right now, cars are keeping their value but that bubble could pop at any time.

 

[Xlch59]

Can you provide a scenario where the GAP is a good thing?

Gap covers the difference between the amount of the loan and amount you insurance pays if the car is totaled. So if you drive off the lot and the car is in an accident you insurance will probably pay MSRP for the car if totaled. You will be responsible for the rest. Your down payment mostly went to tax and license fee's. I made payments on a car for a year after it was totaled because of the gap.

 

[generaltso]

Yes, I already bought it. We really don't have any Mach-E coming in to the Central Valley, CA. They haven't had any more come in since I swooped mine up 12 days ago.

You bought it 12 days ago and they haven’t processed your loan yet? This entire thing sounds fishy. Are they giving you the $2500 incentive with the Options “offer”?

 

[Kitten]

Well it's worth noting that the Ford website finance calculator does NOT include Taxes, which being thousands of dollars will increase your payment. I think dealers get hung up on "what do you want your monthly payment to be." Since you had already executed a financing contract, the dealership already knew your "number." Sounds like maybe they just padded the new contract with extras, thinking they'd get a little more money in their pockets and you wouldn't complain about a payment amount you'd already agreed to.

I think the profit margins on these are slim so dealers are trying to squeeze out dollars wherever they can. I think this build and order online model is very new for them too and doesn't leave room for haggling or markups (ADMs are one of the things corporate has brought the hammer down on, I've heard.)


So, long ramble to say:

1) Yes. I would. Service contract is crazy $ and you can get Gap insurance way cheaper through your insurance co

2) I wouldn't think one has anything to do with the other

3) I have read on this forum that the apr you qualify for isn't based solely on your credit score, other factors are involved. What, I don't know. But I've learned that dealers can tack on a "reserve" to up the interest rate and increase their profit.

4) In my experience, the more you know, the less they can get away with. I had spent over a year on forums like this one learning everything I could about the car, the Options plan, financing, ADMs, interest, down payments, Rule of 78s etc etc etc. There was very little they tried to throw at me that I wasn't able to dispute (although the 11th hour interest rate increase threw me, the people of this forum raced to the rescue).

 

[hybrid2bev]

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.

Looks like others have answered correctly.

Ford Options 1.4% rate is for GTs, 2.49% for non-GTs.

Warranty and GAP are 100% optional and can be canceled.

 

[macchiaz-o]

Gap insurance will cover the difference if you wreck the car and you owe more than it’s worth. Considering your down payment was less than the ADM, that‘s a definite possibility.

I paid for gap insurance through my auto insurance provider for about six months, and then had them remove it from my policy. It's very inexpensive this way, and you only pay for it when you want it. I think it was less than $10 for six months but I can't remember.

 

[Motomax]

Damn they bent you over alright. If they do give you ford options make sure they give you the 2500 incentive that comes with it-I have a feeling they really want to switch you to options so they can pocket the incentive. You also left A clean fuel reward of $750 on the table. try to cancel the gap and get it through your insurance instead. Keep the service plan if it makes them more compliant and as your leaving say good thing I can cancel it.
then screw them out of getting a bonus for the options plan by immediately financing through a credit union after you took the incentive lol.

 

[Sail04]

Yes, I already bought it. We really don't have any Mach-E coming in to the Central Valley, CA. They haven't had any more come in since I swooped mine up 12 days ago.

I agree. There are very few here in the SJ valley.

 

[Anton]

You bought it 12 days ago and they haven’t processed your loan yet? This entire thing sounds fishy. Are they giving you the $2500 incentive with the Options “offer”?

Technically, I already signed off on the original loan agreement. After speaking with the GM (4-5 days ago), I'm getting them to cancel it (in process) in favor of the Ford Options agreement. Yes, they are including the $2,500 incentive. Although they can't say for sure if they can make it happen with the $750 California Fuel Rewards Time-of-Sale incentive.

 

[Anton]

Damn they bent you over alright. If they do give you ford options make sure they give you the 2500 incentive that comes with it-I have a feeling they really want to switch you to options so they can pocket the incentive. You also left A clean fuel reward of $750 on the table. try to cancel the gap and get it through your insurance instead.

Yup. They definitely bent me over. It's a good lesson to have. I'll learn from it.

I'm trying to get them to include the $750 clean fuel reward, but they are not familiar with that and are not listed as one of the "participating dealers" on the incentive's website. So not going to rely too much on that one. They're including the $2,500 incentive.

Keep the service plan if it makes them more compliant and as your leaving say good thing I can cancel it.
then screw them out of getting a bonus for the options plan by immediately financing through a credit union after you took the incentive lol.

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