"Ford Options" Mach-E Lease vs standard lease - similarities and differences

[Woeo]

Just wondering if the credit score is a key factor in getting the 2.25% rate?

You need decent credit to get the 2.25%. You should probably already know if there might be an issue. Credit score is part of what they review, but exactly what matters most to Ford for your situation isn’t public knowledge.

Just be careful that you don’t do the paperwork for an older Ford program with a similar name. That program % rate seems to be 4.xx % and doesn’t involve a balloon/buyout option.

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[Woeo]

I got $2600 in incentives and 2.25% interest.... I’m in MA

$2500 for the Options Financing Cash Incentive (determined by your marketing area/zip code) and $100 for signing the letter acknowledging your car has Assisted Driving Hardware but will need Software (Future purchase) to fully function.

 

[Ach16]

Ford's scoring is proprietary, but it's pretty likely that there's a correlation between your credit score and Ford's credit "tier" scoring. I think the 2.25% APR is reserved for Tier 0 and Tier 1 customers. You won't know your tier until the dealer runs your numbers through Ford Credit's system.

Is the tier information in correlation with the credit score made public or only the dealer knows about it? I want to know the required credit score to be considered a tier 1 or 0 customer

 

[macchiaz-o]

Is the tier information in correlation with the credit score made public or only the dealer knows about it? I want to know the required credit score to be considered a tier 1 or 0 customer

The formula for your FICO credit score isn't public. The formula for Ford Credit's scoring is not public.

They're different things. One is not based on the other. I was just saying that there's probably correlation -- a person with a high FICO score probably, but not always, also has a low-Tier with Ford Credit.

So your dealer can run your credit and give you an idea of what rate they'd guess you'd qualify for... But what really matters is your score at the time you're finally ready to apply for that credit.

 

[Chiefsfan]

one way to find out is to go in to the Ford web site and build and price a Mach-E as if you're buying it. just pick any Mach-E, it doesn't matter which, then tell the site you want the estimated monthly payment on Ford Options. There will be a line item:

I don't see how you get to that. All I can do is order.

 

[generaltso]

I don't see how you get to that. All I can do is order.

Pretend like you're going to order, but hit the Finance button in the top right instead of the Order button.

 

[Scarpia]

I'm trying to figure out payments with Ford Options and how it would work to refi partway through when making the one-time adjustment, using the $7500 Federal Tax Credit.
Scenario:
48 month term, final amount financed would be $43,736. Monthly payment = $613.
Let's say I buy in July and refi in March, so I make 9 payments of $613.
What would the payments be for the following 37 months? (The 48th payment would be the balloon.)
As a bonus question, could I add another $2K to the $7500 when I do the refi?

 

[macchiaz-o]

I'm trying to figure out payments with Ford Options and how it would work to refi partway through when making the one-time adjustment, using the $7500 Federal Tax Credit.
Scenario:
48 month term, final amount financed would be $43,736. Monthly payment = $613.
Let's say I buy in July and refi in March, so I make 9 payments of $613.
What would the payments be for the following 37 months? (The 48th payment would be the balloon.)
As a bonus question, could I add another $2K to the $7500 when I do the refi?

I don't know if I made the right assumptions when I put this together, but my spreadsheet accounts for a one-time loan modification on Ford Options:

https://www.macheforum.com/site/threads/poll-ford-options-vs-finance.2883/page-7#post-92089

On row 52 "extra principal," you can enter in the month where you do the loan modification, and the amount of extra principal you've coordinated with Ford Credit for that purpose. It will show you how this changes the remaining payments.

Yes, your remaining payments should go down, but in nearly any reasonable case that I modeled for myself, the overall amount of interest paid will go up. This is because you're restarting a payment schedule on a loan that uses fixed monthly payments (other than that final balloon).

You pay more interest up front and less in later payments. By modifying the loan, if I understand it right (and I might not), you will pay more interest than you'd originally committed to... It's similar to refinancing a mortgage in that way.

 

[shutterbug]

I don't know if I made the right assumptions when I put this together, but my spreadsheet accounts for a one-time loan modification on Ford Options:

https://www.macheforum.com/site/threads/poll-ford-options-vs-finance.2883/page-7#post-92089

On row 52 "extra principal," you can enter in the month where you do the loan modification, and the amount of extra principal you've coordinated with Ford Credit for that purpose. It will show you how this changes the remaining payments.

Yes, your remaining payments should go down, but in nearly any reasonable case that I modeled for myself, the overall amount of interest paid will go up. This is because you're restarting a payment schedule on a loan that uses fixed monthly payments (other than that final balloon).

You pay more interest up front and less in later payments. By modifying the loan, if I understand it right (and I might not), you will pay more interest than you'd originally committed to... It's similar to refinancing a mortgage in that way.

Don't think this is correct. If the balloon amount, interest rate, and term remain the same, and all you do is reduce the amount of principal, the total amount of interest will go down. Using your spreadsheet, I would save $270 by reducing principal by paying principal down by $7,500 after 10 months. Refinancing a mortgage is totally different because there you actually extend the number of payments. If you refinance a 30 year mortgage after 10 years, the number of payments goes from 360 to 480.

 

[macchiaz-o]

Don't think this is correct. If the balloon amount, interest rate, and term remain the same, and all you do is reduce the amount of principal, the total amount of interest will go down. Using your spreadsheet, I would save $270 by reducing principal by paying principal down by $7,500 after 10 months. Refinancing a mortgage is totally different because there you actually extend the number of payments. If you refinance a 30 year mortgage after 10 years, the number of payments goes from 360 to 480.

You're right. Not sure what I was thinking when I wrote that.

Generally overall interest will go down due to the extra principal. I think what struck me as interesting is that it won't go down as much as I'd originally been thinking. This is partially due to the reason I was trying to explain, the fixed monthly payment amounts. And largely due to the fixed balloon amount at the end.

To me there weren't any scenarios for my own loan where it makes sense to me to ask Ford Credit to modify it. (Others will see this differently due to being in a different situation than me.)

 

[Scarpia]

Thanks, macchiaz-o and Shutterbug. I was using your spreadsheet, macchiaz-o, but had glossed over that added payment. That should do the trick for me.

What I've done with my past two cars is take the rebate/incentive and stick it in an account, divide the dollar amount by the number of payment months, and use that as part of my payment. So, I'd be making partial payments from two different accounts. It's just a quick and dirty way to mentally reduce my payment amount.
But actually making a principal payment is better, because the total interest paid is less.

 

[NoVAguy]

$2500 for the Options Financing Cash Incentive (determined by your marketing area/zip code) and $100 for signing the letter acknowledging your car has Assisted Driving Hardware but will need Software (Future purchase) to fully function.

When you say the $2500 is determined by the marketing area/zip code, do you mean the dealerships area/zip code?

So if someone like myself who lives in a zip code that only gets the $1000 incentive (VA) were to purchase the Mach-E in a $2500 zip code state, would I be able to receive the full incentive amount?

 

[hybrid2bev]

When you say the $2500 is determined by the marketing area/zip code, do you mean the dealerships area/zip code?

So if someone like myself who lives in a zip code that only gets the $1000 incentive (VA) were to purchase the Mach-E in a $2500 zip code state, would I be able to receive the full incentive amount?

Incentives are determined by customer zip code not dealer zip code. If you live in a $1000 area then you'll get that no matter where you buy the car from.

 

[OldEVGuy]

When you say the $2500 is determined by the marketing area/zip code, do you mean the dealerships area/zip code?

So if someone like myself who lives in a zip code that only gets the $1000 incentive (VA) were to purchase the Mach-E in a $2500 zip code state, would I be able to receive the full incentive amount?

I just went through that scenario this week. The dealer (PA) had the $2500 incentive, and my (OH) zip code is $1000. I had to use the incentive from where I live.

 

[NoVAguy]

Incentives are determined by customer zip code not dealer zip code. If you live in a $1000 area then you'll get that no matter where you buy the car from.

I just went through that scenario this week. The dealer (PA) had the $2500 incentive, and my (OH) zip code is $1000. I had to use the incentive from where I live.

Thanks for both your feedback! Good information to know ?

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