Ford financing nightmare?

[Motomax]

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.


?

Are you sure there including the incentive because your contract says 0 under manufacturer rebates. Or is that your old contract. I didn’t quite follow your whole situation haha.

Sponsored

 

[Anton]

Are you sure there including the incentive because your contract says 0 under manufacturer rebates. Or is that your old contract. I didn’t quite follow your whole situation haha.

Apologies for the confusion. The images are of the original contract that is in the process of getting nullified in favor of a Ford Options contract.

 

[Xlch59]

I wish you the best of luck getting your car financed with the option. California has a no cooling off time on the finance part of the contract. Seeing how it's been 12 days the dealership can just string you along until you get the welcome to Ford credit letter. If they redo the deal it would be totally them being nice. Dealership are in it for the money not so much for being nice. Keep us updated.

 

[Anton]

What is the right way for me to cancel the Extended Warranty and GAP coverage within 30 days? Come in person and deliver a letter?
Is there a corporate number I can call to cancel? Would prefer this route to not have to deal with the dealership's antics.

 

[blkadr08]

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.

I’ve asked before and I’ll ask again: What peace of mind are you buying with a $$5000 Service Plan (and it’s a service plan, not a warranty) on a new electric car that requires almost no service, and comes with a generous factory warranty? Windshield wiper Blades? tire rotation? Brake pads?

Listen,, If you still want to own the car beyond the end of the factory’s warranty period, and you’re worried about stuff like the battery, you can always buy the service plan then, as long as you’re still,within the original warranty period.

You can flat cancel a service plan on your contract as Long as you haven’t used it, but you will likely receive a refund from the dealer. The contract will not be revised.

I actually new a guy once who always bought the service plan and then cancelled it after the contract was sent to the bank. He was essentially borrowing the value of the service contract from the lender at a rate usually much lower than the prevailing signature rate.

 

[KennyPratt42]

GAP insurance isn't the worst thing on a new car, but never buy it from a car dealer. Get it added to your auto insurance policy. It will usually cost you significantly less and you can remove it when you don't need it any more (once the car is worth more than you owe on your loan).

 

[Mawby]

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.

Wow. I was under the impression, you were redoing the contract next day... tinting and 300 miles...

If you cannot give it back and full refund (they can let someone else pay $8K over) -- then you can ask for a reduction of service contract to $1500 from $5K. Then you tell them show me in writing where finance requires warranty esp. Then you keep the $1500 or you take it off.

You can get lot cars at msrp. Dealers can tell you whatever they want, get it in writing and too bad your dealer made 3.9K on warranty, $8K adm so at least $13K margin on a car that would be $300 margin at another dealer with no adm. No add-ons.

 

[Anton]

I’ve asked before and I’ll ask again: What peace of mind are you buying with a $$5000 Service Plan (and it’s a service plan, not a warranty) on a new electric car that requires almost no service, and comes with a generous factory warranty? Windshield wiper Blades? tire rotation? Brake pads?

Listen,, If you still want to own the car beyond the end of the factory’s warranty period, and you’re worried about stuff like the battery, you can always buy the service plan then, as long as you’re still,within the original warranty period.

You can flat cancel a service plan on your contract as Long as you haven’t used it, but you will likely receive a refund from the dealer. The contract will not be revised.

I actually new a guy once who always bought the service plan and then cancelled it after the contract was sent to the bank. He was essentially borrowing the value of the service contract from the lender at a rate usually much lower than the prevailing signature rate.

I plan on canceling the plan. I did not want it, but it was only like $20 / month than without it because they said that's the only way I can get 1% lower APR rate. On the new plan, if they say I have to get the service plan in order to get the 2.49% rate (instead of 3.49) then I'll go along with it and then cancel it within 30 days

 

[Anton]

Wow. I was under the impression, you were redoing the contract next day... tinting and 300 miles...

If you cannot give it back and full refund (they can let someone else pay $8K over) -- then you can ask for a reduction of service contract to $1500 from $5K. Then you tell them show me in writing where finance requires warranty esp. Then you keep the $1500 or you take it off.

You can get lot cars at msrp. Dealers can tell you whatever they want, get it in writing and too bad your dealer made 3.9K on warranty, $8K adm so at least $13K margin on a car that would be $300 margin at another dealer with no adm. No add-ons.

I don't think I can find another white mach e premium AWD ER within 150 miles of me. At least without ADM. I'd rather pay the extra 6k than wait 6 months.

The warranty markup I will fight. they got me there...
But like I've said before, I'll gladly pay the 6k instead of waiting and maybe searching for months...

Keep the 1500 and take off? I don't understand

 

[jamelski]

Got to ask.
1-Have you ever bought a car?
2- how old are you ?
My answers to them
1- no you have not imo ? to get suckered into this deal
And
2- under 25 ? to get suckered into this deal

I’m sorry you got hosed and you should have gone with some one that has bought cars. No way you can change my mind and say you have in the past from a dealer
Never ever ever buy anything add on crap form a dealer.
Flood ford for extended warrenty online is the cheapest you can find vice working for ford
Gap from dealer ?‍
Dam bra. I feel bad for you but can’t stop laughing I’m sorry ?

 

[Anton]

Got to ask.
1-Have you ever bought a car?
2- how old are you ?
My answers to them
1- no you have not imo ? to get suckered into this deal
And
2- under 25 ? to get suckered into this deal

I’m sorry you got hosed and you should have gone with some one that has bought cars. No way you can change my mind and say you have in the past from a dealer
Never ever ever buy anything add on crap form a dealer.
Flood ford for extended warrenty online is the cheapest you can find vice working for ford
Gap from dealer ?‍
Dam bra. I feel bad for you but can’t stop laughing I’m sorry ?

1. Yes I've bought a car. Once, private sale, With cash.
2. A bit older.
Like I said previously. Definitely a learning experience. Good thing is they're working on canceling the original contract and putting me on Ford Options. So I get a redo at this... hopefully...

 

[Mawby]

I don't think I can find another white mach e premium AWD ER within 150 miles of me. At least without ADM. I'd rather pay the extra 6k than wait 6 months.

The warranty markup I will fight. they got me there...
But like I've said before, I'll gladly pay the 6k instead of waiting and maybe searching for months...

Keep the 1500 and take off? I don't understand

You should be charged no more than $1500 for the extended-service-plan (esp). Flood or Ziegler is down to like $1100. Definitely tell 'em with a $8K markup you should not have to pay $4995 for it.

I would wait but since you said you can't. That's your decision to pay the net $6K ADM. I would still try to negotiate the $8K down.

 

[blkadr08]

I don't think I can find another white mach e premium AWD ER within 150 miles of me. At least without ADM. I'd rather pay the extra 6k than wait 6 months.

The warranty markup I will fight. they got me there...
But like I've said before, I'll gladly pay the 6k instead of waiting and maybe searching for months...

Keep the 1500 and take off? I don't understand

Herein, then, is the basic Econ 101 issue: The dealer has a product that is scarce, and you want badly. He can charge whatever the market (that’s you) are willing to pay. He’s willing to sell you the car, and help you finance it at a rate you’re comfortable with, if you’re willing to by a separate product from him.

the Finance Manager, who earns his living by selling you these additional products once you’ve agreed to by the car, like access to low interest rates and Service Plans and Gap Protection, is doing his (or, more often her because women are sometimes better at it) job.

Where this process goes beyond simple supply and demand stuff, is when the Finance Manager uses slimy sales techniques to do his job, like insinuating that it is a bank requirement that you buy the Plan in order to secure the Rate, instead of telling the truth that it’s what the Dealership wants in order to agree to sell you the car.

The difference between slimy and illegal is very fuzzy sometimes. As someone else here said, learning how to navigate this often just requires (sometimes expensive) experience.

 

[deadduck]

Regarding the extended warranty,

1. This is California you can 100% cancel a warranty after the sale. I don't know what the time limit is, google and duckduckgo weren't playing nice this morning.
2. An extended warranty, when you buy on Ford options makes very little sense because you can just hand the car back to them in 4 years if it's a lemon.
3. If the dealer is selling it, other than the car, it's not in your interest to buy it. Warranties are a super rip-off. I won't go into it, but there's just no way an extended warranty can have a positive expected return for you absent some crazy situation.
4. And just to repeat others, $5K is horrendously bad.

I won't go into gap insurance, I know less about it, but I will say I've never bought it.

Finally, you can refinance your loan if you can get a better rate elsewhere.

 

[CtsGTP]

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.

Sorry that happen to you but you are the classic payment buyer, they sold you on it’s only an additional $10 more on payment, you do not need the warranty on ford option plan as the car will be covered during the term from the manufacturer. As for Gap you will not need it but if you want it buy it for no more than $495 that’s the cost for GAP. And when you go with Ford Options they can not raise the APR rate. That’s sad that they are charging you almost a 9k ADM - would suggest returning the car and get one somewhere else. Take a drive to Fremont Ca. FREMONT Ford the sales manger sold me my MMEGTP no mark up got the Xplan and ford options !!!! Good luck and remember you don’t need the adds unless you want them! ie: warranty , paint protection, gap, wheels etc. if they say you need that to get a lower rate it’s illegal and take them to the court house and get a free Mach E lol!!! That’s Ca law !!!