Ford Option financing question

[macgyver60]

So my MachE (Premium red) has finally made it to the dealer. I can't wait to pick it up. I contacted spoke to the dealer about the Ford Option financing and he had the finance manager call me back but the info I got from the him did not line up with what I had previously heard. According to their finance manager if I chose to return the car at the end they would hold me responsible for the difference between the balloon payment and the car value at auction. This seems a bit risky. If Ford was trying to mimic a lease without losing access to the tax credit this does not accomplish that goal. Is the finance manager correct about this or is he confused? He claims he got this info directly form Ford. I read the info on Fords web page and did not see anything that supported his claim. Thanks in advance.

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[ChasingCoral]

Ford Option Financing Thread # 263

 

[macchiaz-o]

Trust the Ford web page. And verify that when your dealer shows you financing details, it has the fine print you are expecting.

There are a lot of financing options. The "big O" Ford Options are the least well understood by most dealers right now. So you're right to be asking them for details.

 

[generaltso]

Is the finance manager correct about this or is he confused? He claims he got this info directly form Ford.

He‘s either confused or lying. Since he said the info came from Ford, I’m leaning more towards lying.

 

[GoGoGadgetMachE]

He‘s either confused or lying. Since he said the info came from Ford, I’m leaning more towards lying.

hold on hold on hold on

you're saying a car dealer might not be playing fair with a consumer? ?

 

[macgyver60]

Thanks. As I remember there was supposed to be some type of rebate with the options program but the dealer acted like that was crazy. Was I wrong about that?

 

[generaltso]

Thanks. As I remember there was supposed to be some type of rebate with the options program but the dealer acted like that was crazy. Was I wrong about that?

You‘re not wrong. The Options rebate is $2500 or $1000 depending on your region. I believe NY is $2500.

 

[buffasnow]

So my MachE (Premium red) has finally made it to the dealer. I can't wait to pick it up. I contacted spoke to the dealer about the Ford Option financing and he had the finance manager call me back but the info I got from the him did not line up with what I had previously heard. According to their finance manager if I chose to return the car at the end they would hold me responsible for the difference between the balloon payment and the car value at auction. This seems a bit risky. If Ford was trying to mimic a lease without losing access to the tax credit this does not accomplish that goal. Is the finance manager correct about this or is he confused? He claims he got this info directly form Ford. I read the info on Fords web page and did not see anything that supported his claim. Thanks in advance.

He is wrong. There are plenty of threads on Options, you can search for them, many subtopics covered exhaustively.

The Options residual/balloon payment is calculated at delivery. After 35 or 47 months, you can do one of three things:
1. Pay the balloon and you own the car outright. Drive it or sell it.
2. Walk away, you owe Ford nothing (unless you went over the mileage limit/have excess wear).
3. If the market value is > balloon payment, you can use that difference as trade in value toward a different vehicle.

There is an incentive to use Options, $1000 or $2500. I believe all of NY gets the $2500. I did.

 

[macgyver60]

He‘s either confused or lying. Since he said the info came from Ford, I’m leaning more towards lying.

You may be right. I’m starting to worry that they be playing games. I ordered this car 18 mos ago and have $1,000 in deposits on it but ever since the finance manager found out two days ago that I was using the A plan and knew about the NYS $2,000 rebate (and wasn’t interested in the extended warranty) I haven’t been able to get a call back from him. I may be reading more into this than I should but we’ll see what happens in the next day or two.

 

[macgyver60]

He is wrong. There are plenty of threads on Options, you can search for them, many subtopics covered exhaustively.

The Options residual/balloon payment is calculated at delivery. After 35 or 47 months, you can do one of three things:
1. Pay the balloon and you own the car outright. Drive it or sell it.
2. Walk away, you owe Ford nothing (unless you went over the mileage limit/have excess wear).
3. If the market value is > balloon payment, you can use that difference as trade in value toward a different vehicle.

There is an incentive to use Options, $1000 or $2500. I believe all of NY gets the $2500. I did.

Do you know what the interest rate was on the Options plan when you did it?

 

[generaltso]

Do you know what the interest rate was on the Options plan when you did it?

The interest rate (if you have good credit) is 2.25%.

 

[Chiefsfan]

Does anybody see much advantage to Options if you are in a $1000 geographical area?

 

[generaltso]

Does anybody see much advantage to Options if you are in a $1000 geographical area?

Depends what your goal is. Options gives you a guaranteed buy out price if values plummet.

 

[Jako607]

Depends what your goal is. Options gives you a guaranteed buy out price if values plummet.

Exactly. I did Options mainly because I wanted to be able to hand it back after 3 years without worrying about resale value, plus I still got the $7500 federal tax credit. There is literally no other vehicle you can buy right now to own for just 3 years like a lease but still get the tax credit all to yourself. The $1000 or $2500 offer with Options was just gravy IMO.

 

[macgyver60]

The interest rate (if you have good credit) is 2.25%.

Thanks. You guys have been far more help than the dealer

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