Ford Options Contract-End Information

[SoriceConsulting]

I pulled the trigger on a 2023 GTPE in Rapid Red. Out the door price was 52,318 (factored in was $27,500 they gave on trade-in for my 2021 Prem AWD ER). My last options payment would be $25,110.

Ford Finance, 72 months at 0% interest!? Don't know how/why they are offering that, as the $25k I did not have to pay to buyout my Options contract can keep earning over 5% interest (until the Fed starts cutting), but even at 4.5%, 4%, etc. it makes sense to take advantage of the free Ford money.

And in NJ (currently, but looks like that is changing), there is no sales tax on EV purchases, so that 52,318 was really the bottom line.

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[NC-GT]

Congrats! Enjoy the ride

 

[ckt]

Any chance they'll offer a sweet deal? Assuming at end of contract, car is worth less than balloon payment.

 

[macchiaz-o]

Any chance they'll offer a sweet deal? Assuming at end of contract, car is worth less than balloon payment.

Not tracking what you mean...

If the car's worth less at contract end than the balloon AND you aren't interested in owning it anymore, than you've already gotten your sweet deal. Just turn on the vehicle in that case.

 

[ckt]

Not tracking what you mean...

If the car's worth less at contract end than the balloon AND you aren't interested in owning it anymore, than you've already gotten your sweet deal. Just turn on the vehicle in that case.

Good point! Who knew it would go down so much in value.

 

[HuntingPudel]

Not all terms are that way, I believe this is on a state by state basis. My terms do not include that language.

Yep, my contract indicates that the balloon can be refinanced at a rate agreed upon by the lender and the purchaser. It doesn’t say what the rate is or that it’s at the rate of the original loan.

 

[Thor2j]

Can't wait to turn my 21 GT back in Oct 31st. I have 2 ford's and getting service in Colorado is a nightmare. Not to mention car isn't worth much. Whole reason that I went with the lease option was I was worried about the EV world.

 

[eStang]

Yep, my contract indicates that the balloon can be refinanced at a rate agreed upon by the lender and the purchaser. It doesn’t say what the rate is or that it’s at the rate of the original loan.

My note had the same language. I asked if I could get a current promotional rate. They said no, the rate will be the same as the original, for 36 months. This resulted in a lower monthly payment than the original loan in my case because that balloon amount was less than than the original financed amount.

 

[Arsenic17]

Is there an option for return your vehicle, have it go to auction, have your dealer buy it at auction for pennies on the dollar, sell it back to you at deep discount?

Sign me up for that one please!

Is Ford technically buying it back from you in this case? If so they might be able to claim the 4k federal tax credit.

I was wondering if it was possible to trade it back in and then buy it immediately from them for the 4k credit. May not work for options since you technically own the car the entire time, but it may work for leases as you would be the first used owner.

 

[Arsenic17]

Can't wait to turn my 21 GT back in Oct 31st. I have 2 ford's and getting service in Colorado is a nightmare. Not to mention car isn't worth much. Whole reason that I went with the lease option was I was worried about the EV world.

Do you live in southern or West Colorado? There are Ford dealers every five miles around Denver. And some (not all) are well trained on EVs and have been great for me.

 

[Scooby24]

Is Ford technically buying it back from you in this case? If so they might be able to claim the 4k federal tax credit.

I was wondering if it was possible to trade it back in and then buy it immediately from them for the 4k credit. May not work for options since you technically own the car the entire time, but it may work for leases as you would be the first used owner.

According to my dealer, if you turn it back in you're turning it into Ford, not the dealer...and Ford will auction it. So what I described is technically what my dealer could do..but they would have to make money on it doing that so the auction price would have to be VERY low for that to be a legit scenario.

The used car tax credit has significant limitations though...we wouldn't qualify for the income cap at 150k for married joint filers.

 

[hybrid2bev]

According to my dealer, if you turn it back in you're turning it into Ford, not the dealer...and Ford will auction it. So what I described is technically what my dealer could do..but they would have to make money on it doing that so the auction price would have to be VERY low for that to be a legit scenario.

And the dealer does not know what auction house the vehicle is going to, the car could be shipped out of state if Ford is getting better prices elsewhere. Your dealer would also have to outbid other dealers.

 

[generaltso]

The used car tax credit has significant limitations though...we wouldn't qualify for the income cap at 150k for married joint filers.

And it only applies to vehicles purchased from a dealer.

 

[Haven]

And the dealer does not know what auction house the vehicle is going to, the car could be shipped out of state if Ford is getting better prices elsewhere. Your dealer would also have to outbid other dealers.

As I understand the lease end process when I worked on the IT systems 10 years ago, the auction actually starts on the dealer’s lot when the vehicle is turned in by the customer. Ford sets the price and dealers in the area can bid on it. There is also a price that the dealer can buy it out right then as well. If it is not purchased by the time a car carrier shows up, it goes to a physical auction. From there additional dealers can bid on it before being sold. This process may have changed but that’s how I remember it.

 

[Thor2j]

Do you live in southern or West Colorado? There are Ford dealers every five miles around Denver. And some (not all) are well trained on EVs and have been great for me.

Near denver. Been to 3. Nothing to do with ev, cant get raptor in for service either. It's a joke. They say they just don't have enough .mechanics. About 4 months ago thought I might be having transmission issue with the truck. Told me 6 months before they could get to it.

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