Ford Options - refinancing balloon payment

[Regularmache]

Great info, our a first Edition was the First Time a very large Dealer with multiple Locations in Florida and Alabama ever heard of Ford Options! It was a Looooong time in Finance while Ford Credit walked them through the process.

Our 22 GTPE is the first Balloon Buyout were going to do so Thank you to all of you 'Early Permanent Adopters' for paving the way!

Do we get to choose the term or it a fixed number of Months?

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[silverelan]

Great info, our a first Edition was the First Time a very large Dealer with multiple Locations in Florida and Alabama ever heard of Ford Options! It was a Looooong time in Finance while Ford Credit walked them through the process.

Our 22 GTPE is the first Balloon Buyout were going to do so Thank you to all of you 'Early Permanent Adopters' for paving the way!

Do we get to choose the term or it a fixed number of Months?

Review your Options financing paperwork but if it’s anything like my 4 year Options agreement, it’s a 36 month term with a continuation of the original APR %. Your payment amount is recalculated based on the balloon payment balance. @hybrid2bev might know more.

 

[macchiaz-o]

Do we get to choose the term or it a fixed number of Months?

Review your Options financing paperwork but if it’s anything like my 4 year Options agreement, it’s a 36 month term with a continuation of the original APR %. Your payment amount is recalculated based on the balloon payment total. @hybrid2bev might know more.

My became 36 months at the original rate, also. My original Options term was 3 years.

 

[hybrid2bev]

Do we get to choose the term or it a fixed number of Months?

Yes, it’s 36 months. But you can always pay more than your normal monthly payment to pay it off faster.

 

[Regularmache]

I will have to decide new 25 or buyout and 4 new Pirelliis after only 11,800 miles! ?

 

[ChuckA]

Great info, our a first Edition was the First Time a very large Dealer with multiple Locations in Florida and Alabama ever heard of Ford Options! It was a Looooong time in Finance while Ford Credit walked them through the process.

Our 22 GTPE is the first Balloon Buyout were going to do so Thank you to all of you 'Early Permanent Adopters' for paving the way!

Do we get to choose the term or it a fixed number of Months?

For mine they did 36 months maximum allowed at my 2.25% rate. I was never asked if I wanted a different term but I’d think they’d do less if you wanted.

 

[Graction]

I ended up turning mine in and leasing a new GT. But I had the same experience of calling Ford Credit to discuss options a month before it was due and the guy had no clue. Said I had to go to the dealer. The dealer also had never done a turn in on Ford Options and they had a lot of trouble getting any info from ford credit on how to complete the process. They ended up paying my last 2 payments and the buyout amount on the car but it didn’t go smoothly. Ford credit kept saying I owed the final 29K payment even after it was due. Finally the dealer and credit figured it out and I had to go back and sign 2 extra documents that I was basically selling them the car. What a mess.

 

[MaxSkywalker]

I got the paperwork to refinance the balloon payment with ford credit at the same original interest rate. One thing im seeing is a "finance charge" of $768. Finance charge is defined as "the dollar amount the credit will cost you". Was anyone else charged something similar when refinancing the balloon payment with Ford credit?

 

[hybrid2bev]

I got the paperwork to refinance the balloon payment with ford credit at the same original interest rate. One thing im seeing is a "finance charge" of $768. Finance charge is defined as "the dollar amount the credit will cost you". Was anyone else charged something similar when refinancing the balloon payment with Ford credit?

There’s no charge to refinance. If your reading the Fed Box on the contract it’s just an estimate of the interest you would pay during the term of the loan.

 

[MaxSkywalker]

There’s no charge to refinance. If your reading the Fed Box on the contract it’s just an estimate of the interest you would pay during the term of the loan.

Oh got you. That makes sense. I thought it was an extra charge ?

 

[OH2AZ2OH]

Funny, I just called about my Options contract that expires in July to refinance the balloon payment. I was told I would need to go to the dealer, even after I asked him to double check that. About a minute later, I was called back and got an apology for being given incorrect information. I was told to call Ford Finance after my final payment was made, and they would initiate the refinance at that time. That seems to be what everyone is being told, but this process is not inspiring confidence.

 

[jgillmer]

I have my 48-month Ford Option financing for my 21MMEGT closing on October 31. I just got off the phone with Ford Credit (1-800-727-7000). The representative did confirm that if you choose to refinance the balloon payment that it will be at the original rate of your Ford Options contract (mine is 1.4%). The monthly payment likely will change, depending on the number of months to finance. It seems the default is 36 months, but I imagine you can ask for a contract with fewer months or, if that is not allowed, the provision for being able to pre-pay without penalty, you can achieve the pay-off sooner than 36 months.

One interesting thing the representative told me - even though we are encouraged to reach out to get started with the refinancing between 30 days (minimum) -90 days before the final payment, she told me that they can't initiate the paperwork for the refinance until after the final pre-balloon payment has settled. She even double-checked that aspect for me. She also recommends, when I do call back for setting up the refinancing, to ask the customer service representative to connect you with Ford Options specialist who focuses on "credit re-analysis" - that will get you to someone who knows the Ford Options program well.

I love my MME GT - And I deeply appreciate this forum - so many questions answered ahead of my purchase and then navigating potential issues from the collective's experiences. It helped in a big way when I was preparing for taking delivery in 2021 (especially the custom Excel charts and spot-on guidance from @hybrid2bev ). Reading about potential issues from other member experiences has been a really big help. Luckily for me, the High Voltage issue never reared it's ugly head before the recall replaced it. My only warranty issue was that the horn cover cracked along the box holding the airbag underneath. They replaced that for free - I am noticing the beginning of a crack again, which is more of reminder to cool it when I get the urge to lay on the horn - for one, it's not like the person I'm honking at is ever going to be like "ya know, you're right, I shouldn't have cut you off or jumped the merge line, etc." Two, not worth the spike of BP, and, three, if it cracks through like before, while that shouldn't be happening in the first place, I'll be on the hook for replacement. The part is like $400 and labor a couple hundred more.

Thanks, everyone!

 

[ChuckA]

I have my 48-month Ford Option financing for my 21MMEGT closing on October 31. I just got off the phone with Ford Credit (1-800-727-7000). The representative did confirm that if you choose to refinance the balloon payment that it will be at the original rate of your Ford Options contract (mine is 1.4%). The monthly payment likely will change, depending on the number of months to finance. It seems the default is 36 months, but I imagine you can ask for a contract with fewer months or, if that is not allowed, the provision for being able to pre-pay without penalty, you can achieve the pay-off sooner than 36 months.

One interesting thing the representative told me - even though we are encouraged to reach out to get started with the refinancing between 30 days (minimum) -90 days before the final payment, she told me that they can't initiate the paperwork for the refinance until after the final pre-balloon payment has settled. She even double-checked that aspect for me. She also recommends, when I do call back for setting up the refinancing, to ask the customer service representative to connect you with Ford Options specialist who focuses on "credit re-analysis" - that will get you to someone who knows the Ford Options program well.

I love my MME GT - And I deeply appreciate this forum - so many questions answered ahead of my purchase and then navigating potential issues from the collective's experiences. It helped in a big way when I was preparing for taking delivery in 2021 (especially the custom Excel charts and spot-on guidance from @hybrid2bev ). Reading about potential issues from other member experiences has been a really big help. Luckily for me, the High Voltage issue never reared it's ugly head before the recall replaced it. My only warranty issue was that the horn cover cracked along the box holding the airbag underneath. They replaced that for free - I am noticing the beginning of a crack again, which is more of reminder to cool it when I get the urge to lay on the horn - for one, it's not like the person I'm honking at is ever going to be like "ya know, you're right, I shouldn't have cut you off or jumped the merge line, etc." Two, not worth the spike of BP, and, three, if it cracks through like before, while that shouldn't be happening in the first place, I'll be on the hook for replacement. The part is like $400 and labor a couple hundred more.

Thanks, everyone!

You’re on point about the Ford Options balloon refi. Your 1st refi payment will be due on Nov 1 so that gives them time between the the balloon due dates and 1st payment. In my case I prepaid all the remaining payments but FC still wanted to wait until the balloon was the only remaining payment. I refi’d for 36 months because that would be a lower payment.

 

[ryan9751]

Posted some of this on another thread, but since you don't get the refinance contract until after the balloon payment due date, what happens if you don't agree to the new contract?

Phone agent told me I could still return the vehicle (although my current contract implies otherwise)

I know the terms of the refinance are spelled out in the original contract, but it seems crazy to me to basically be entering a new financing contract before having seen it. (i.e. your first payment under new contract due 30 days after balloon payment due date)

 

[ChuckA]

Posted some of this on another thread, but since you don't get the refinance contract until after the balloon payment due date, what happens if you don't agree to the new contract?

Phone agent told me I could still return the vehicle (although my current contract implies otherwise)

I know the terms of the refinance are spelled out in the original contract, but it seems crazy to me to basically be entering a new financing contract before having seen it. (i.e. your first payment under new contract due 30 days after balloon payment due date)

I think it was a Docusign contract. If you don’t agree, don’t sign. IMO it’s all above board, no surprises or landmines.

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