Ford Options Plan

[s7davis]

Is it me or are the Ford Option Plan do not seem worth it. I jsut did a test run on the select and for the max mileage at .9% APR it wanted $632 a month for i think the 35 or 36mos.

With a ballon note of 16k left I mean for that price might as well just buy the car at first. I was really hoping to be able to afford the Ford Options plan but not so sure I can have enough money for the 10% down they asking for.

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[AndyS_OSU]

Honestly I was surprised that the rate was 0.9%. That is way more generous than I thought they would be. Of course that will change before delivery.

It seems like the big issue might be residual value. By my calculations it was around 55% where most Ford leases are 57% and most EV leases around 60-61%. That could also change and may just be based off of standard RV from Ford right now.

 

[highland58]

The Ford Options plan was the default choice and shows 0.9%. If I change to the the Finance plan, it then defaults to a longer term and says 1.9%. If I change the term to 36 months, I then get 0.9% rate on that plan. I'm planning to pay at least $10K down to keep the payments lower, it defaulted to 10% down. Trading in my car would bring the payments down more. I also see that it is giving me a $1000 off incentive, based on my zip code and subject to change and expiration. The options plan sounds a lot like a lease, and the balloon payment sounds like BS to me - based on residual value - I'll pass.

 

[benboy12]

Honestly I was surprised that the rate was 0.9%. That is way more generous than I thought they would be. Of course that will change before delivery.

It seems like the big issue might be residual value. By my calculations it was around 55% where most Ford leases are 57% and most EV leases around 60-61%. That could also change and may just be based off of standard RV from Ford right now.

I got a 42% residual on 36 months at 15k miles a year. I’m assuming you must have the 10k mile a year option.

And I think this is what we were told to expect from the beginning. A Ford exec said most people would buy versus lease, and there were rumors of low residuals. I think it’s Ford’s way of hedging the risk of a low car value in 3 years due to changing EV technology. Just like me and others would have been interested in a lease to hedge our risk in the opposite direction (be way upside after 3 years and can’t sell it for what we owe).

I ran the numbers on a premium and it looked like it was a $100 a month cheaper to buy and finance at 72 months. I’d imagine that payments would be comparable if you were planning to buy and finance for 60 months.

 

[opennetus]

Ford Options seems like a better deal than paying in cash, even if you are 95% sure that you will keep it after the 48 month term. 0.9% interest is so low, you could just put the cash into a conservative investment instead and be better off. Compared to traditional loan, it also seems good (assuming the downpayment is not an issue and you don’t need the lowest possible monthly payment since the interest rate is the same compared with a 48 term loan). The monthly payments are lower (again, allowing more investment With your cash) and you can always just refiance the balloon amount at the end and keep the car. If a tech breakthrough happens, or if the car turns out to be a lemon, you have a guarenteed option to sell it before the warranty expires. Seems like there are no real downside. Are there any extra throw-away fees if you just decide to keep the car after the term is up? Is the “disposal” fee only charged if you turn in the car (no fees besides interest for the program if you end up paying off the ballon amount and keeping the car)?

Of course, got to wait and see what the terms are at delivery to know what is best.

 

[FredT]

Where are you guys seeing .9% on Ford Options? I'm getting 5% APR for both Ford Options and financing.

 

[s7davis]

You act like placing an order and then click on finance calculator

 

[FredT]

Where you guys seeing any Options info on Mach E? The payment calculator on Ford.com doesn't work for me on 2021 models.

I'm seeing it when I go to the "Complete Your Order" page. There's a "See Monthly Payment" link.

 

[AndyS_OSU]

Financing rates can be regional sometimes AND we really shouldn’t look at them until about September. Everything is a guess and probably just current promotional info for your region.
My calculate payment page even had a $1500 rebate listed as available to qualified buyers.

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