Ford Options Financing... not an option?

NoVAguy

Well-Known Member
First Name
Chris
Joined
Jan 22, 2021
Threads
7
Messages
205
Reaction score
356
Location
22030
Vehicles
None
Country flag
I heard back from the dealer... sounds like they are going to work on figuring out how to accept Ford Options financing. So, I'm hoping I'm OK... I appreciate everyone's comments. I'll update this thread if things change.
Glad to hear!
Sponsored

 

Ned

Well-Known Member
First Name
Ned
Joined
Mar 13, 2021
Threads
3
Messages
64
Reaction score
15
Location
Prescott, AZ
Vehicles
waiting for ford
Occupation
retired
Country flag
I heard back from the dealer... sounds like they are going to work on figuring out how to accept Ford Options financing. So, I'm hoping I'm OK... I appreciate everyone's comments. I'll update this thread if things change.
Just what are the advantages to "Ford Options"?
 

idkhow

Banned
Banned
First Name
Bateman
Joined
Jun 12, 2021
Threads
10
Messages
219
Reaction score
251
Location
Jersey
Vehicles
2021 mach-e premium, van down by the river
Occupation
it plumber, auto detailer
Country flag
Just what are the advantages to "Ford Options"?
You own the vehicle at roughly the cost of a lease (slightly lower residual value) with the option to let it go for roughly the same price at the end, without needing to purchase.

Basically a hybrid lease or purchase, but created for the Mach-E to give you ownership to claim the tax-credit. Owning the vehicle means you get to claim the $7,500 rebate.

In my situation I was never presented Ford Options despite asking both the salesman and finance manager about claiming the $7,500 and wasn't ever told - the Red Carpet lease means zero tax credit. It wasn't written into the lease, so Ford Credit / CAB EAST can now claim the tax rebate, I can't.

Good on dealers who are making this work rather than mumbling when asked about tax credits, and only present the Red Carpet Lease options.
 

hybrid2bev

Well-Known Member
Joined
Dec 4, 2019
Threads
75
Messages
4,070
Reaction score
11,091
Location
USA
Vehicles
2021 Job 1 Premium4X - EAP Member
Country flag
Just what are the advantages to "Ford Options"?
There are subtle differences. The big picture is that Ford Options and a traditional lease are more similar than different.

Ford Options choices at the end of the contract term are:
1. Return – Transfer ownership of the vehicle to Ford Credit (like a lease turn-in, with mileage and excessive use charges)

2. Renew – Trade-in/Sell the vehicle, any accumulated equity may be available for use as down payment

3. Retain – Payoff or refinance the balloon note amount through Ford Credit (like buying out your lease by paying the agreed lease purchase price/residual value)

Differences:
Ford Options is a retail contract, so the title is in the customer name. For standard leases the title is in the lease company name. Because Ford Options are retail contracts instead of leases there may be differences in how the transactions are taxed depending on where you live (in the monthly payments vs. all upfront at time of sale) so consult your dealer.
 

hybrid2bev

Well-Known Member
Joined
Dec 4, 2019
Threads
75
Messages
4,070
Reaction score
11,091
Location
USA
Vehicles
2021 Job 1 Premium4X - EAP Member
Country flag
You own the vehicle at roughly the cost of a lease (slightly lower residual value) with the option to let it go for roughly the same price at the end, without needing to purchase.

Basically a hybrid lease or purchase, but created for the Mach-E to give you ownership to claim the tax-credit. Owning the vehicle means you get to claim the $7,500 rebate.

In my situation I was never presented Ford Options despite asking both the salesman and finance manager about claiming the $7,500 and wasn't ever told - the Red Carpet lease means zero tax credit. It wasn't written into the lease, so Ford Credit / CAB EAST can now claim the tax rebate, I can't.

Good on dealers who are making this work rather than mumbling when asked about tax credits, and only present the Red Carpet Lease options.
The tax credit was partially written into your RCL, you just can't see it. If you did an RCL then you got a higher residual percentage than you would have under Ford Options. This is because of the tax credit.

You did get some of the advantage of the tax credit with RCL, you just don't get to claim it on your taxes.
Sponsored

 
Last edited:
 




Top