Ford Options Disposition Fee When Trading in Early for non-Ford?

[Bullitt]

Like the title suggests, I'm looking to get out of my Ford Options plan a year early and capitalize on the good lease deals this year before the tax credit goes away. Thankfully, payoff is about the same as trade-in value, so I'm able to get out of it.

A Ford dealer claimed that if I didn't stick with a Ford I'd be responsible for the $475+tax disposition fee, but I thought that only applied to me turning the car back in to Ford Credit at the end of the term and walking away. Does anyone know if I'm still expected to pay this fee if I'm trading the car in for a non-Ford and the dealer is buying it from me like any other trade-in? Thanks!

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[joes723]

Looks like that is the case when trading in for a non Ford even if it’s from a Ford dealership.

 

[Bullitt]

Looks like that is the case when trading in for a non Ford even if it’s from a Ford dealership.

That's on turning in though. I just read my contract and even that doesn't cover the idea of trading it in. My understanding is that me selling to a dealer is the same as me buying out the car early, and according to my contract, there's no penalty for early pre-payment.

 

[RickMachE]

You don't pay the fee if you pay it off in full, including the balloon. And that citation above is for leasing, not Options. The Options contract you have specifies any fees.

 

[Mach1E]

That's on turning in though. I just read my contract and even that doesn't cover the idea of trading it in. My understanding is that me selling to a dealer is the same as me buying out the car early, and according to my contract, there's no penalty for early pre-payment.

Try calling Ford credit for clarification. Dealers don’t always have the best info.

 

[Bullitt]

You don't pay the fee if you pay it off in full, including the balloon. And that citation above is for leasing, not Options. The Options contract you have specifies any fees.

You seem to be talking about very different things.

You aren’t pre-paying, you’re getting out of the contract early.

Pre-paying would be making the next 12 months of payments.

Either way, you aren’t doing the things necessary to waive the disposition fee as noted above.

Alright so 2 different opinions...I'm paying off in full so I'm pretty sure RickMachE is right about no fees. That seems to be the way I'm reading my contract as well.

 

[RickMachE]

@hybrid2bev can verify.

 

[joes723]

That's on turning in though. I just read my contract and even that doesn't cover the idea of trading it in. My understanding is that me selling to a dealer is the same as me buying out the car early, and according to my contract, there's no penalty for early pre-payment.

that screenshot was for the trade-in (turning in doesn’t really exists as that would technically be “returning” the car); if there is any type of transaction taking place and the options isn’t paid off (or remaining balance rolled into a new loan on a new ford or Lincoln through ford credit) appears to be when the fees are triggered. Keeping the ford and paying it off, keeping and refinancing the balloon payment or returning it and walking away, appears to be the only way around it. I e chatted my ford people here a few times as I’m less than a year out myself and need to make a plan.

 

[Mach1E]

Alright so 2 different opinions...I'm paying off in full so I'm pretty sure RickMachE is right about no fees. That seems to be the way I'm reading my contract as well.

You were too fast. I thought about it more and edited my response. I don’t think my first post was right.

It probably comes down to how the dealer treats it. As a “turn in and not buying a Ford,” or as “you pay it off in full and they buy it from you,” ie a traa

 

[Bullitt]

Yeah I think for the sake of argument, we'll just say that a dealer is giving me the money to buy the car loan out (no fees) and then I immediately turn around and sell to them for same price. That's essentially what's happening when you trade a car in to any dealer. Ford Credit is satisfied with a full payoff and they don't care what happens to the car after that (I'm pretty sure).

 

[HuntingPudel]

So, if you are paying it off, there is no disposal fee. You are just paying off the loan early. What you do with the car after you pay it off isn't Ford Credit's business. You can trade it in, sell it, keep it, or send it off to the auto wrecker. ??

 

[hybrid2bev]

The disposition fee is only if Ford Credit gets possession of the vehicle (turn in). The fee is to help cover the cost to Ford Credit for getting to and conditioning the vehicle for auction.

If you trade or sell then there’s no fee.

 

[Bullitt]

The disposition fee is only if Ford Credit gets possession of the vehicle (turn in). If you trade or sell then there’s no fee.

Awesome, thank you so much for the definitive clarification!

 

[Mach1E]

Awesome, thank you so much for the definitive clarification!

It’ll be definitive when the dealer makes it happen.

I wouldn’t lead with “some guy on the internet said…..”

What you need to do is look at your contract, find the exact language and show it to them.

 

[devmach-e]

It’ll be definitive when the dealer makes it happen.

I wouldn’t lead with “some guy on the internet said…..”

What you need to do is look at your contract, find the exact language and show it to them.

To be fair, @hybrid2bev is more than just "some guy on the internet".

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