Ford financing nightmare?

benk016

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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.
You are confusing the Service Plan with a maintenance plan. The Premium Care plan he has a contract for is extending the factory warranty to 6 years 100,000 miles with a $100 deductible.

At $5000 it is not worth it, but at $1500 it may be for OP. I've had it on several of my Ford's and its paid for itself every single time.
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JeanneB

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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?
I'm a finance manager and that's crazy what they charged you for the warranty. The warranty is a good idea if you're going to keep the car but there's no way I would pay that much for it nor try to sell it for that much. If they are redoing the contract and you don't want the warranty they cannot make you take it. I would tell them if they want to keep the warranty you'll do it for say $1500. And the options they selected are option deletes. You'll definitly want the lighting package if you do it and thats one of the things they deleted. Good luck!
 

Neil4Real

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You just need to go in there and try and get the 2.49% rate, since it doesn't seem like you bought a GT, and for sure get the $2,500 Options rebate. If they're not participating, you can't get the $750 but maybe its easy for them to get qualified so you can get it. Then apply for the California $2,000 rebate after purchase. Make sure you know the term, 36 months or 48 months, and mileage you want. You can go super low on miles if you want a lower payment right now and are for sure keeping the car. If you're still not certain, then make sure you do some math and get the right miles so you don't go over, or not by more than few hundred miles.

Say you don't want ANYTHING added on. If they push, say you'll just cancel in the 30 day window. Some dealers play extreme hardball, so don't feel like pushing back is bad. It seems like that's what you're struggling with. When we bought my wife's Volkswagen, the finance guy was getting so pissed we declined everything and tells us maybe they'll change the price if we don't want to protect the car. I told him to try it. We did the deal, but I talked to the GM after and got a few things due to his rudeness.

Tell them you'll take GAP if they do it for $400 or $500 unless you want to ask your auto insurance. $400/$500 is cost, they should do that for you after how crazy this has been.
 
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Anton

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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 !!!
Just called Fremont Ford and they have a $10k markup on a 2021 Standard Range Premium Red. He did say they can always "help" with the markup.
 

Neil4Real

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Just called Fremont Ford and they have a $10k markup on a 2021 Standard Range Premium Red. He did say they can always "help" with the markup.
Just tell them you'd be there to get it if they can do $2,500 or $0 or something. I had a dealer trying to do $10k and then said if I came in right then, he'd do $1,500, but I had to go that day. Tell them to just email you that offer and you'll be in.
 


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Anton

Anton

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Tell them you'll take GAP if they do it for $400 or $500 unless you want to ask your auto insurance. $400/$500 is cost, they should do that for you after how crazy this has been.
Just called Geico, surprisingly they don't offer GAP insurance...
 

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We waited 8 months for delivery and so we had plenty of time during the pandemic to build up a down payment. Our car Premium X was 54K & we put down 25K. We filled out the online Ford Financing and when we showed up for delivery we asked if our loan went through, the finance guy laughed and said that they would have been stupid if they did. Other than that Walker Ford in Clearwater, Florida was a dream to deal with.
 

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I own a Driving School Company and here is my (2 cents) worth of advice.

Never buy extended warranty or any other crap that is presented to you after agreeing to purchase the car. I purchase around 2 vehicles a year and I have never bought the "protective" stuff they try to sell. I am leap years ahead financially by not buying that crap. I would guess that I have purchased well over 50 cars in my lifetime thus far.

Never purchase a car that you cannot afford to buy. I know that sounds like sane advise but far too many people purchase things they simply can't afford. It amazes me to see how "loose with money" people are with big purchases.

If you are buying GAP Insurance, you cannot afford the car IMO. That is like paying for extended warranty. Waste of money in the long run if you are playing the odds.

My Mom gave me the best advice as a teenager that I still follow to this day.

1. Find a car that you would like to have (dream at this point) and see how much your payments would be.

2. Walk away from said car and get a job (or keep a job) and buy the cheapest car that you can buy. My first job was $2.50 per hour btw. I paid $1,350 cash for a 73 Dodge Dart in 1980 from Birthday money along with savings from my job. A dealership at the time would have sold me a car for $5,000 (with a loan) but I bought the cheaper one instead. Interest rates were very high at the time. THANK YOU MOM

3. Place the "payment amount" (that the dealership gave you) in a bank with an account labeled "Car Payment". Let this accrue for the next couple of years.

4. Purchase the car with cash when "Car Payment" account is reached. (be patient)

5. Continue to place payments into the "Car Payment" account and use it to purchase the next car (3 or 4 years down the road) Do this for the rest of you life. ;)

6. After doing this for years, you will be able to get high deductibles on your insurance along with (if the car is worth under $5,000), liability only insurance. This alone will save you literally thousands of dollars.

In doing this, you will never pay finance charges and you will be better armed not to pay for hidden costs or fees that are buried in most car loans. You will feel a short pain the day of buying the car and that "pain" goes away when you drive off the lot. It is a good feeling knowing that you don't have to pay anymore on said vehicle other than taxes and upkeep.

Everyone CAN do this. You are basically delaying the process initially for 3-4 years and you can then enjoy more "stuff" at a lower cost throughout your lifetime by not paying interest charges.

My advise to the person purchasing the car on this thread-

Take the car back and get one you can more afford. If you are paying $8,000 ADM, I think better advice would be to go to Vegas and you may get more on your return investment. (just kidding but it would be equally as crazy)

Life is too short to give most of it away to people you don't know or see.
 

JeanneB

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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.
I have to disagree about the extended warranties. They are are good thing to have if you plan on keeping your car past the 3/36 warranty. They have saved a lot of people from major expenses. I do agree with you though about the $5k price. That's waaaay overpriced.
 

Neil4Real

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I own a Driving School Company and here is my (2 cents) worth of advice.

Never buy extended warranty or any other crap that is presented to you after agreeing to purchase the car. I purchase around 2 vehicles a year and I have never bought the "protective" stuff they try to sell. I am leap years ahead financially by not buying that crap. I would guess that I have purchased well over 50 cars in my lifetime thus far.

Never purchase a car that you cannot afford to buy. I know that sounds like sane advise but far too many people purchase things they simply can't afford. It amazes me to see how "loose with money" people are with big purchases.

If you are buying GAP Insurance, you cannot afford the car IMO. That is like paying for extended warranty. Waste of money in the long run if you are playing the odds.

My Mom gave me the best advice as a teenager that I still follow to this day.

1. Find a car that you would like to have (dream at this point) and see how much your payments would be.

2. Walk away from said car and get a job (or keep a job) and buy the cheapest car that you can buy. My first job was $2.50 per hour btw. I paid $1,350 cash for a 73 Dodge Dart in 1980 from Birthday money along with savings from my job. A dealership at the time would have sold me a car for $5,000 (with a loan) but I bought the cheaper one instead. Interest rates were very high at the time. THANK YOU MOM

3. Place the "payment amount" (that the dealership gave you) in a bank with an account labeled "Car Payment". Let this accrue for the next couple of years.

4. Purchase the car with cash when "Car Payment" account is reached. (be patient)

5. Continue to place payments into the "Car Payment" account and use it to purchase the next car (3 or 4 years down the road) Do this for the rest of you life. ;)

6. After doing this for years, you will be able to get high deductibles on your insurance along with (if the car is worth under $5,000), liability only insurance. This alone will save you literally thousands of dollars.

In doing this, you will never pay finance charges and you will be better armed not to pay for hidden costs or fees that are buried in most car loans. You will feel a short pain the day of buying the car and that "pain" goes away when you drive off the lot. It is a good feeling knowing that you don't have to pay anymore on said vehicle other than taxes and upkeep.

Everyone CAN do this. You are basically delaying the process initially for 3-4 years and you can then enjoy more "stuff" at a lower cost throughout your lifetime by not paying interest charges.

My advise to the person purchasing the car on this thread-

Take the car back and get one you can more afford. If you are paying $8,000 ADM, I think better advice would be to go to Vegas and you may get more on your return investment. (just kidding but it would be equally as crazy)

Life is too short to give most of it away to people you don't know or see.
GAP is definitely not a waste of money if you can get it for $400, even if you're confident in your own ability, you never know other drivers. With today's market, I would NOT get GAP unless you're paying an ADM. GAP is also pointless with a hefty downpayment, which it seems like you put down.
 

Rfehl62

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Just called Geico, surprisingly they don't offer GAP insurance...
Ok as a Ford employee here is what I recommend. You need to get the GAP but cost on it should only be about $700. Do not worry about the service contract, you have until the 3yr/36,0000 mile factory warranty expires to get it and even then you can find it at a much cheaper price online. As for the rate, you should be getting the 1.4% for 48 months with the $2,500 incentive. That is called an "incentivized rate". If they try to tell you anything higher then it is just them trying to mark up the rate for profit. You are 100% entitled to the 1.4% on an options plan. Make sure they provide a CCA form which confirms they are putting the $2,500 rebate in the deal. There is a chance they try to "scoop" this rebate and turn it into profit. To make sure this does not happen, look at the starting price and make sure it is the $8000+MSRP that was agreed upon. Please feel free to message me if you have any other questions.
 

Neil4Real

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Ok as a Ford employee here is what I recommend. You need to get the GAP but cost on it should only be about $700. Do not worry about the service contract, you have until the 3yr/36,0000 mile factory warranty expires to get it and even then you can find it at a much cheaper price online. As for the rate, you should be getting the 1.4% for 48 months with the $2,500 incentive. That is called an "incentivized rate". If they try to tell you anything higher then it is just them trying to mark up the rate for profit. You are 100% entitled to the 1.4% on an options plan. Make sure they provide a CCA form which confirms they are putting the $2,500 rebate in the deal. There is a chance they try to "scoop" this rebate and turn it into profit. To make sure this does not happen, look at the starting price and make sure it is the $8000+MSRP that was agreed upon. Please feel free to message me if you have any other questions.
1.4% is only for GTs?
 

Rfehl62

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1.4% is only for GTs?
I am in Texas so it may be different here. If you send me the zip code you would be registering at, I can pull a smart Vincent and tell you for sure.
 

DennisD

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GAP is definitely not a waste of money if you can get it for $400, even if you're confident in your own ability, you never know other drivers. With today's market, I would NOT get GAP unless you're paying an ADM. GAP is also pointless with a hefty downpayment, which it seems like you put down.
I have no idea what you are implying?

I stated clearly that you should NOT buy gap insurance.

In fact, I went out of my way to suggest quite the opposite.

Reading is fundamental. ;)
 
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Take the car back and get one you can more afford. If you are paying $8,000 ADM, I think better advice would be to go to Vegas and you may get more on your return investment. (just kidding but it would be equally as crazy)
Thank you for your advise. I can afford the car. I can afford the $8,000 ADM. I just don't like being taken advantage of, which is what happened here. I'm working on fixing that by at least getting rid of the extended warranty and GAP coverage.

Not sure if I can "give the car back" as I've already signed the contract. Which I'm working with the GM to get cancelled and get put on a Ford Options contract. A peculiar situation...

By the way. I still own the '09 Camry I bought used with cash in 2013 from Vegas poker tournament winnings. Been there, done that.
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