Ford Options Early Buy-Out

[dcheng]

For many, last year the rebates for this program made it worth doing, they got $2,500 in some cities. Mine was $1,000, with a 2.49% rate as I recall. Or, I could get a loan with 0.9%. Guess which I took?

In my case, like others have done, I was planning on paying cash, but it seems worth it for me to do Ford Options since there was a $2,000 rebate, then pay it off within a month or so. I'm guessing you took the $1,000, then re-financed at 0.9%?

Sponsored

 

[RickMachE]

In my case, like others have done, I was planning on paying cash, but it seems worth it for me to do Ford Options since there was a $2,000 rebate, then pay it off within a month or so. I'm guessing you took the $1,000, then re-financed at 0.9%?

Your point is correct - if you want the rebate, take Options and refinance THE NEXT WEEK (call Ford Credit for the loan number).

However, NO, I did not do that, because the 0.9 was with Ford Credit. So I had to pick one. I chose 0.9% for 4 years.

 

[dcheng]

Your point is correct - if you want the rebate, take Options and refinance THE NEXT WEEK (call Ford Credit for the loan number).

However, NO, I did not do that, because the 0.9 was with Ford Credit. So I had to pick one. I chose 0.9% for 4 years.

That 0.9% is looking awfully good right now! I wish I could get that rate!

 

[RickMachE]

That 0.9% is looking awfully good right now! I wish I could get that rate!

Ordered our Mach-E in May 2021. Bought cancelled order July 2021. Got ordered car May 2022 with the 0.9% from last year...

 

[MachTee]

Your dealer has no idea what they’re talking about. The maximum down payment is a lot more than $10k and the Options loan can be paid off at any time.

When I bought my MME last June, I had a trade which I fully owned, and I told them to just go ahead and put the whole thing as down towards Options, but was told the max I could put down was $9K and they had to cut me a $30K++ check. Since there's no sales tax on EVs here it made no difference so I agreed to $9K down and a check for the difference.

I nearly walked as they had no clue on what Options was so it was entirely possible it was BS, but what purpose would it serve? I said bluntly get yourselves educated on Options now (to get me the $2500 Options rebate) or I walk. I did inform them multiple times that I intend to pay it off right away and they said fine, so at least they didn't BS me about not being able to pay off early. That was last June. I paid it off 2 weeks after I got the car.

OP, just make absolutely sure before you sign that they setup you up with Options and not a regular lease.

 

[dcheng]

OP, just make absolutely sure before you sign that they setup you up with Options and not a regular lease.

I'm definitely going to be doing this. Based on all the other responses, plus the apparent misunderstanding on the part of my dealer, I'm going to be making very certain that I'm signing up for Options and not a lease or other financing plan.

I'm a little worried, but I figure I can always just pay cash. The $2k would be welcome, but like with all things money-related, you pay for convenience, peace-of-mind, time, or whatever is more important to you at that moment.

 

[daemonic3]

Ours (last week, northern California) was $500 instant rebate for ford financing with standard loan, or $2000 if using Ford Options. I intend to pay it off at the earliest so I didn't care what the rates were. I had no prior research on Ford Options (first I'd heard of it) so I thought it was a lease and/or a scam. When dealer said "not supposed to tell you but you can pay it off just like you intend to do with the regular financing" I thought ok sign me up. I confirmed with finance guy in back office that I can indeed pay it off early.

If I was lied to I will be pissed. Also, there indeed was a max cap on how much we could put down (trade+cash). It was somewhere around $26k on a $60k+ extended price. So that 35-40% down cap sounds correct. I don't think they had this limit with standard financing, but rather a minimum amount to *finance* (probably like $10k or $15k or some floor).

 

[Nemy]

This is all correct. I've done it three times and paid it off each time. There's a maximum amount that you can put down for a deposit. When I traded in my 2021 it was above that amount so they just cut me a check.

But each time the sales reps had no idea what to do or what Options even was. The first time I had to tell them what it was. The second time they signed me up for a lease but I drove away because I had already been there for 5 hours while they tried to figure it out... Then I got them to fix it the next day. The third time, the sales rep still got it wrong after we talked about it but the finance guy caught it.

@hybrid2bev seems to be the only expert and I don't even know if he works for Ford lol. Moral of the story, make sure it's clear that you want options and you should be signing an actual retail contract not anything that remotely mentions a lease. The only similarity is that there's a mileage cap but it's moot if you intend on paying it off.

 

[yngwenli]

Ford is no longer allowing purchases after a lease. They are keeping all leased MMEs.

Wanted to add that I think it's only for certain states (there are a lot though, I think around 37 which no more purchase after lease) so in some states, you can still purchase it (probably due to state laws).

 

[HuntingPudel]

<SNIP>
@hybrid2bev seems to be the only expert and I don't even know if he works for Ford lol.
<SNIP>

I am pretty sure @hybrid2bev does. He had people from Ford Credit contact dealers in the past to help them through Ford Options financing.

That said, my Ford Options deal from November in California allowed a max downpayment of 45%. That’s what I put down and I financed the rest. Given the rise in interest rates, I probably should have held on to part of that and financed more.

 

[jmatero]

This thread has been helpful. Just want to make sure I understand how this works:

1. Lower monthly payment with balloon at end.
2. Ford applies 1000-2500 rebate depending on market to sale price.
3. Ford takes (and applies?) the federal $7500 tax credit to sale price.
4. Can payoff the balance any time without penalty.

missing anything?

 

[dmastro]

This thread has been helpful. Just want to make sure I understand how this works:

1. Lower monthly payment with balloon at end.
2. Ford applies 1000-2500 rebate depending on market to sale price.
3. Ford takes (and applies?) the federal $7500 tax credit to sale price.
4. Can payoff the balance any time without penalty.

missing anything?

Ford does not take the tax credit. You take it (assuming you have sufficient tax liability) the following year when you file your federal income tax.

 

[macchiaz-o]

Lower monthly payment with balloon at end.

Yes, when compared with traditional non-balloon financing.

Ford applies 1000-2500 rebate depending on market to sale price.

I believe the rebate to date has ranged from $500 to $2,500, and is of course always subject to change in the future. In my zip code it is currently a $500 rebate.

Ford takes (and applies?) the federal $7500 tax credit to sale price.

The tax credit is between the purchaser and the federal government. Ford doesn't interface with that.

Can payoff the balance any time without penalty.

True.

missing anything?

Good summary here:

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

 

[Arsenic17]

A question I cant seem to find an answer anywhere:

What happens if you pay off the principal right away down to the balloon payment level? My hope you be just to lower overall paid interest and eliminated the monthly payment during the Options period. Basically I am wondering if your monthly payment goes away or if it drops to just paying interest each month?

 

[generaltso]

A question I cant seem to find an answer anywhere:

What happens if you pay off the principal right away down to the balloon payment level? My hope you be just to lower overall paid interest and eliminated the monthly payment during the Options period. Basically I am wondering if your monthly payment goes away or if it drops to just paying interest each month?

The balloon is part of the principal, so you'll just be prepaying part of the loan at that point.

Sponsored