Ford Options Contract-End Information

[PrimeFuture]

Just did this last week for our 2021 Mach-E. We're in Texas. The locked interest rate for us was 4.25% (because of Texas regulations according to the FordPass associate) offered at 24, 36, 48, or 60 months.

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[dimes4slim]

As an aside, I bought my 21 Premium in Dec 21 using the Options plan for 3 years, with a balloon payment of ~$23K, and a 2.9% interest rate. Dummy me made the remaining 30+ payments a few months later so I could save on the interest expense, not knowing where interest rates were heading. Surprisingly, California issued me the title and mailed it to me after I completed the early 36 month payoff, but before the balloon payment. No liens are listed. I found it odd that Ford Credit would release a title before the remaining $23K is paid. Did they make a mistake?

 

[bshaw]

As an aside, I bought my 21 Premium in Dec 21 using the Options plan for 3 years, with a balloon payment of ~$23K, and a 2.9% interest rate. Dummy me made the remaining 30+ payments a few months later so I could save on the interest expense, not knowing where interest rates were heading. Surprisingly, California issued me the title and mailed it to me after I completed the early 36 month payoff, but before the balloon payment. No liens are listed. I found it odd that Ford Credit would release a title before the remaining $23K is paid. Did they make a mistake?

What does your account say when you log into the Ford Credit website?

 

[billy_at]

For people who have already received their renewal, is 36 months the only term available for a refi?

And does anyone know if you keep the initial interest rate in NJ?

 

[macchiaz-o]

For people who have already received their renewal, is 36 months the only term available for a refi?

And does anyone know if you keep the initial interest rate in NJ?

You'd need to work with Ford Credit to find your specific terms. Here in central AZ I was offered a 36 month replacement of my balloon payment at the original rate.

 

[dimes4slim]

What does your account say when you log into the Ford Credit website?

I cannot log in to Ford Credit any more, as it doesn't recognize my user name. Perhaps because the account is paid? I have a letter from them congratulating me on having my account paid in full, and that they have released their lien.

 

[bshaw]

I cannot log in to Ford Credit any more, as it doesn't recognize my user name. Perhaps because the account is paid? I have a letter from them congratulating me on having my account paid in full, and that they have released their lien.

Uh, seems like a very strange situation. I imagine the auditor at Ford Credit would eventually discover the shortfall, and start to reach out to you. But, I suppose with an unencumbered title, you could do whatever at this point.

Are you sure you didn't send a check for "Payoff amount" that was shown on the Ford Credit website? This is what I did when I was approaching the end of my options plan, and it included the full amount of the balloon. I just don't see how Ford Credit could make such an oversight.

 

[dimes4slim]

Uh, seems like a very strange situation. I imagine the auditor at Ford Credit would eventually discover the shortfall, and start to reach out to you. But, I suppose with an unencumbered title, you could do whatever at this point.

Are you sure you didn't send a check for "Payoff amount" that was shown on the Ford Credit website? This is what I did when I was approaching the end of my options plan, and it included the full amount of the balloon. I just don't see how Ford Credit could make such an oversight.

BINGO. Wow, I never did the math until now. I never got a breakdown from Ford Credit, but I assume included was the acquisition fee. I planned on keeping it anyway since I only have 14,000 relatively trouble free miles after 27 months. Thanks for the insight!

 

[PrimeFuture]

For people who have already received their renewal, is 36 months the only term available for a refi?

And does anyone know if you keep the initial interest rate in NJ?

I posted mine above. It varies state to state as there seem to be different regulations. In Texas at least, the minimum rate was 4.25%, which is what FordPass offered to me. The term could be 24, 36, 48, or 60 months. We went with the 60 month, because it's always nice to have the low required payment with ability to pay off early.

 

[generaltso]

BINGO. Wow, I never did the math until now. I never got a breakdown from Ford Credit, but I assume included was the acquisition fee. I planned on keeping it anyway since I only have 14,000 relatively trouble free miles after 27 months. Thanks for the insight!

You didn’t notice that you paid $23k extra?

 

[MachDoc]

I decided to pay off my balloon payment and then sell my 2021 Premium to Carvana for a $1500 profit.

I then picked up an awesome GT in Vapor Blue that I am leasing for $300 less per month.

 

[PNWEV]

My balloon payment doesn’t come due until 2026 and given how they are dealing with the hvbjb recall that has kept my car in the shop for the last two weeks with no end in sight and then telling me they won’t pay for a rental or provide a loaner, I’m going to turn it in an never buy another ford product. I’m also sure it will be well underwater by then.

 

[Dancefreak]

The refi procedure is to use the same contract rate.

On the balloon refi does ford let you make a lump payment and then finance the rest? For example....if my balloon payment is 26K, can I make a 10K payment to pay part of the balloon and save some interest.... and then finance 16K over 36 months?

 

[phidauex]

Another question on the options... I was originally planning to just refinance the balloon and keep going, but with the good deals on '23 GTs and the '24 GT order banks available through dealers, I'm now considering going the trade-in route.

However, I'm a bit unclear on how the trade in would be handled in this case. The Options website says that vehicle inspection isn't needed in the trade in case - does that mean things like the slash on my front lip and aftermarket wheels won't be counted against me?

Does the dealer do a valuation of the trade in when it is an Options trade, or do I get the full value of my balloon (as though I were doing the ownership transfer back to Ford)?

Can I initiate the trade before my balloon is due? It matures at the end of June, but if I found a good deal before then can I still act on it as an "Options" option even with one or two normal payments due?

I'll ask my nearby dealers about it, but given how little they've tended to know about Options, I thought I'd check here too.

 

[hybrid2bev]

Another question on the options... I was originally planning to just refinance the balloon and keep going, but with the good deals on '23 GTs and the '24 GT order banks available through dealers, I'm now considering going the trade-in route.

However, I'm a bit unclear on how the trade in would be handled in this case. The Options website says that vehicle inspection isn't needed in the trade in case - does that mean things like the slash on my front lip and aftermarket wheels won't be counted against me?

Does the dealer do a valuation of the trade in when it is an Options trade, or do I get the full value of my balloon (as though I were doing the ownership transfer back to Ford)?

Can I initiate the trade before my balloon is due? It matures at the end of June, but if I found a good deal before then can I still act on it as an "Options" option even with one or two normal payments due?

I'll ask my nearby dealers about it, but given how little they've tended to know about Options, I thought I'd check here too.

If you trade in… it’s just like a normal financial transaction. No inspection, no mileage or damage charges.

The valuation is market value based, not balloon value.

You can trade at any time.

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