Ford Options Calculator

[Mansour1491]

Hi,

I am expecting delivery of my Prem AWD in a week or so (finally). Now trying to compare financing through my credit union vs Ford Options.

Is there a calculator for Ford Options where I can plugin credit score/mileage/etc and get some numbers on monthly payments, baloon payment.

Thanks,
Mohamed

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[rohankumar]

https://www.macheforum.com/site/threads/poll-ford-options-vs-finance.2883/page-7#post-92089

 

[Mansour1491]

Thanks for sharing this post.

With Ford Options, if I expect to drive 20K miles/year, how much down payment is required on a 48 month options financing?

 

[hybrid2bev]

Thanks for sharing this post.

With Ford Options, if I expect to drive 20K miles/year, how much down payment is required on a 48 month options financing?

The maximum mileage is 19,500 per year (unless you purchase more on top of 19,500). There is no minimum down payment required.

 

[guster14]

The maximum mileage is 19,500 per year (unless you purchase more on top of 19,500). There is no minimum down payment required.

Do you happen to know how much extra it is per mile to add more? I put close to 20k/yr just on commuting alone and know I'll be using the car for errands also. We thinking of getting around 25k miles.

 

[hybrid2bev]

Do you happen to know how much extra it is per mile to add more? I put close to 20k/yr just on commuting alone and know I'll be using the car for errands also. We thinking of getting around 25k miles.

It depends. You have to live in an eligible state (CT, MA, NY, NJ, PA, RI, TX and VT) to add extra mileage on top of the 19,500 allowance. You can only add mileage on top of the 19,500 allowance.

If you live in one of those states then you must select 19,500 miles per year, and you can add additional mileage as follows:

• MSRP of $30k to $49,999 is $0.15 per mile
• MSRP of $50,000+ is $0.20 per mile

Maximum allowed total mileage is 99,999. If you do not use all the purchased mileage portion (mileage on top of 19,500) and you transfer the vehicle back to Ford Credit, you would get a refund as long as it's greater than $1 and you don't have any excess wear/use or late charges due.

 

[generaltso]

Do you happen to know how much extra it is per mile to add more? I put close to 20k/yr just on commuting alone and know I'll be using the car for errands also. We thinking of getting around 25k miles.

With that kind of mileage, I would just plan on selling or trading in the car at the end of the loan term instead of turning it in to Ford Credit. Then the mileage is irrelevant.

 

[guster14]

With that kind of mileage, I would just plan on selling or trading in the car at the end of the loan term instead of turning it in to Ford Credit. Then the mileage is irrelevant.

So would I take a hit on the residual value if I trade it at the end of the Ford Options contract? Like when you're over the mileage on a lease and then have to pay for that extra mileage at the end.

 

[generaltso]

So would I take a hit on the residual value if I trade it at the end of the Ford Options contract? Like when you're over the mileage on a lease and then have to pay for that extra mileage at the end.

You wouldn't have to pay Ford anything at the end except the balloon payment, regardless of the mileage. In theory, you might get less when you sell or trade it if it has high miles, but that's the case when you sell any car. Keep in mind that Options is a loan, not a lease. You own the car, and there is no requirement to turn it in.

 

[guster14]

You wouldn't have to pay Ford anything at the end except the balloon payment, regardless of the mileage. In theory, you might get less when you sell or trade it if it has high miles, but that's the case when you sell any car. Keep in mind that Options is a loan, not a lease. You own the car, and there is no requirement to turn it in.

Thank you. I appreciate your feedback. Just trying to wrap my head around the Ford Options concept. Theoretically, if I am planning on trading the car in after my 3 yrs financed for a new Mach E for the sake of simplicity, that would affect my bubble payment/trade it amount though correct? If not, you could just low ball the mileage from the start and have a lower payment. My understanding of Ford Options is that it provides a sort of protection in that if the Mach E is worth much more when the 36 months is up, you could just pay off the car then resell it if you want but if the trade in value is much lower than than what the "bubble amount" was, you'd be able to trade it in at the bubble amount anyways. Sorry if this is confusing.

 

[generaltso]

Thank you. I appreciate your feedback. Just trying to wrap my head around the Ford Options concept. Theoretically, if I am planning on trading the car in after my 3 yrs financed for a new Mach E for the sake of simplicity, that would affect my bubble payment/trade it amount though correct? If not, you could just low ball the mileage from the start and have a lower payment. My understanding of Ford Options is that it provides a sort of protection in that if the Mach E is worth much more when the 36 months is up, you could just pay off the car then resell it if you want but if the trade in value is much lower than than what the "bubble amount" was, you'd be able to trade it in at the bubble amount anyways. Sorry if this is confusing.

The balloon amount is based on what Ford thinks the car will be worth at the end of the term. That value is based on the number of miles you say you'll drive over that time. If you low ball the mileage the balloon will be higher and your monthly payment will be lower. But if you sell, trade, or keep the car, the total paid is about the same either way.

 

[RickMachE]

I think there's confusion over terminology here.

With Ford Options, at the end of the payments, you can hand Ford the keys, like a lease. If your mileage is over the amount, you'll pay them for that. If it's under the amount, you won't. And you won't owe the balloon.

If at the end of the payments, you want to trade it in (or sell it privately), because it's worth more than the balloon, the mileage is ignored. The dealer values the car (valuation includes how many miles on it), just like any other buyer, and offers a price. Carmax, Carvana, etc. offer prices. Private sellers offer prices. And you, the original buyer, sell or trade the vehicle AND pay off the balloon payment.

I'm sure if I have it wrong someone will correct me.

https://www.ford.com/finance/finance-options/ford-options/


Three Flexible Options
Renew: Replace with a new Ford or Lincoln.
Trade in or sell the vehicle to a third party and apply the proceeds to your remaining account balance. Any excess value after settling the account may be used as a down payment toward your new Ford or Lincoln.

Retain: Keep the vehicle.
Satisfy the account with Ford Credit by paying the final balloon payment and any remaining balance.

Return: Transfer ownership of the vehicle to Ford Credit.* *
At the end of term, return your vehicle. An amount equal to the original scheduled final balloon payment will be applied toward the satisfaction of your last installment payment. The returned vehicle is subject to excess mileage charges, excess wear and use charges, unpaid payments, a $475 disposal fee and any other outstanding fees. Wear and use guidelines apply – see the wear and use guidelines for details.

 

[guster14]

Thanks for the insight. I greatly appreciate it. Just seems backwards to me that the bubble payment at the end would be higher going w/ the lower mileage. Calculating out 10500k miles vs 19500k miles, the total amounts do come out to close the same in the end (around $100 off if my math was correct) in total monthly payments+final bubble payment.

 

[generaltso]

Just seems backwards to me that the bubble payment at the end would be higher going w/ the lower mileage.

Why? The balloon amount is based on what Ford thinks the car will be worth. If you put fewer miles on the car, it will be worth more, right?

 

[Dancefreak]

Thanks for the insight. I greatly appreciate it. Just seems backwards to me that the bubble payment at the end would be higher going w/ the lower mileage. Calculating out 10500k miles vs 19500k miles, the total amounts do come out to close the same in the end (around $100 off if my math was correct) in total monthly payments+final bubble payment.

what doesn’t make sense? A car with lower mileage is worth more than a car with higher mileage. It’s the same loan either way…just structured slightly different to reflect how many miles you expect to use in 36 or 48 months.

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