"Ford Options" payment option

RyZt

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Yes, you pay the tax on the full purchase price when you make the purchase. But in some states, the residual value is deducted from the tax owed on your next vehicle when you trade it in or sell it within 90 days of purchasing your new vehicle.
And that "some state" doesn't include California.
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generaltso

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And that "some state" doesn't include California.
That's unfortunate. I always only pay tax on the difference between the purchase price and the value of my trade-in. The states with no sales tax clearly have it better, but at least it's something.
 

hybrid2bev

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Yes, you pay the tax on the full purchase price when you make the purchase. But in some states, the residual value is deducted from the tax owed on your next vehicle when you trade it in or sell it within 90 days of purchasing your new vehicle.
And that could be one of the reasons why Ford Options is not available in every state.
 

efisher

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Well that sucks for high sales tax states like California.

Thats two reasons now I don’t like options. The other being no 24 month option available like leasing.

Ford if you’re listening, why don’t you provide us real options, and allow us the option to Red Carpet Lease the Mach E?
Probably because they have no idea what the residual value will be. I assume that they will set the residual value as low as possible to minimize their risk, which will mean higher monthly payments. I just wonder if they plan on charging that $450 disposal fee even if you plan to pay off the balloon and keep the car.
 

hybrid2bev

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I just wonder if they plan on charging that $450 disposal fee even if you plan to pay off the balloon and keep the car.
The disposal fee is only charged if you return the vehicle. If you buy it out, refinance the balloon or trade it in then the disposal fee is not assessed.
 


efisher

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That is a steep depreciation curve. I wonder if Ford will offset that with a low interest rate.
 

DBC

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That is a steep depreciation curve. I wonder if Ford will offset that with a low interest rate.
I don't see a steep depreciation curve. "Yes" if you don't account for the $7500 tax credit, but "no" if you do. And you really have to. So ((MSRP-$7500) - Residual)/MSRP-$7500. Below 50% would be a steep depreciation curve. Above would not be. I think when I ran the numbers -- and I didn't pay too much attention since I understand these aren't final -- I got something in the range of 54%.

No doubt there are reasons why Ford can't do this, but I wonder why it doesn't run a lease/release program. I think Fiskar is doing a 4X two year lease. The consumer gets to switch vehicles every two years and the vehicle ends up with an eight year lease life, after which it's sold.
 

hybrid2bev

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Yes, but as an FYI the max down payment is limited on Ford Options.

Maximum Down Payment on Ford Options contracts is 30% of the cash price.
Down Payment includes:
 Cash Down Payment
 C&I (other money from Ford)
 Rebates
 Trade-In
 

MurphyDog

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Just wanted to give some feedback on a similar program I used from BMW called "Owners Choice". I used the program to buy an i3 back in 2014. The sticker price for the car was right around $55k. The final payment for the car after 5 years was set at about $13k (I could either pay that amount or give them back the car). They also gave the option of moving the $7500 tax rebate to the final payment to bring down the monthly cost, which I did. That brought the final payment to just over $20k. Fast forward 5 years and the value of the car drastically dropped and I don't think BMW wanted any more of them. They sent me a letter saying I could settle up the final $20k payment for $9k if I let them know within seven days. I jumped on it and paid the car off. Now two years later, I'm expecting to get between $10-12k trade in towards my MME.

Overall I was happy how it finally played out. However if BMW didn't drop the price I would have turned in the car AND had to pay the $7500 which would have been really painful.
 

hybrid2bev

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No, I'm not talking about the balloon amount. Your balloon note amount is documented on your financing contract (it could be a different amount for each persons' contract based on the contract structure and vehicle residual percentage).

I'm talking about when you are setting up your contract at vehicle delivery. There is a limit as to how much you can put down at inception. The program rules state that the "Maximum Down Payment on Ford Options contracts is 30% of the cash price."
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