Ford Options Title Issues (check your title! )

[Nemy]

This is an FYI and PSA for Options owners. We're 1.5 years into Ford Options and I just had my second titling issue.

I just got my title after paying off my Options MME and it clearly listed me as a lessee with a signed release from a lessor. Since this was my third Options plan, I knew that it was wrong. Now it might not be an issue but I could see it being a problem with the IRS if you get audited/rejected for the tax credit. So check your title!

Anyways, I called Ford Credit and they were no help - they didn't even believe me when I told them that it wasn't a lease... They went so far as to pull up my sales agreement and (my favorite part) argued that I had a mileage allowance... So I let her go after she told me I could talk to the DMV and get them to reissue a title.

Then I called the DMV and they said that I needed a release of lien and to pay for a new title. I have a release but I really don't think that I should have to pay for a new title - especially since it might just say the same thing based on their records/what was submitted.

Finally I called my dealership. The title person at least recognized the mistake but still said that the confusion was because of the "balloon lease." I don't think she noticed when I corrected her and said balloon payment... So hopefully it gets sorted out but, again, moral of the story is to check your title. Better safe than sorry for $7500.

If you want to keep reading, my first titling issue was on my first MME. I didn't get a title for over 6 months after paying it off and didn't realize it until I suddenly decided to sell it. After about a month and 10 visits to the DMV, getting a new payoff letter from Ford, and lucking out with a helpful DMV rep who put a rush, I finally got my title. Apparently someone at the dealer had sent it in as a lease... ? They tried to recall it/get it fixed but then the correct one never got processed. So moral #2, if you're planning on selling your MME in the near future, try to pay it off early and make sure you... check your title!

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[hybrid2bev]

Yes I agree. Read your registration and title application paperwork carefully before signing.

 

[Atxsw]

Thanks for posting this, I definitely will need to do this once my MME gets delivered

 

[RickMachE]

In my state, when you do a purchase with a loan (or one with Ford Options I would assume), you get issued a title with a lien on it. When you pay it off, you still have a title with a lien on it, and a letter from Ford that says the lien is released. No new title is issued. I can go to the Michigan Secretary of State's (i.e. our DMV) and pay to get a new title. Or, when I sell the car (2013 F-150), I can sign the title and hand the letter to the buyer and let them get their new title. Neither Ford, nor the state, will issue me a new title for free.

 

[TD1273]

This is an FYI and PSA for Options owners. We're 1.5 years into Ford Options and I just had my second titling issue.

I just got my title after paying off my Options MME and it clearly listed me as a lessee with a signed release from a lessor. Since this was my third Options plan, I knew that it was wrong. Now it might not be an issue but I could see it being a problem with the IRS if you get audited/rejected for the tax credit. So check your title!

Anyways, I called Ford Credit and they were no help - they didn't even believe me when I told them that it wasn't a lease... They went so far as to pull up my sales agreement and (my favorite part) argued that I had a mileage allowance... So I let her go after she told me I could talk to the DMV and get them to reissue a title.

Then I called the DMV and they said that I needed a release of lien and to pay for a new title. I have a release but I really don't think that I should have to pay for a new title - especially since it might just say the same thing based on their records/what was submitted.

Finally I called my dealership. The title person at least recognized the mistake but still said that the confusion was because of the "balloon lease." I don't think she noticed when I corrected her and said balloon payment... So hopefully it gets sorted out but, again, moral of the story is to check your title. Better safe than sorry for $7500.

If you want to keep reading, my first titling issue was on my first MME. I didn't get a title for over 6 months after paying it off and didn't realize it until I suddenly decided to sell it. After about a month and 10 visits to the DMV, getting a new payoff letter from Ford, and lucking out with a helpful DMV rep who put a rush, I finally got my title. Apparently someone at the dealer had sent it in as a lease... ? They tried to recall it/get it fixed but then the correct one never got processed. So moral #2, if you're planning on selling your MME in the near future, try to pay it off early and make sure you... check your title!

I didn't run to your problem but I received my title back from the state of Wa and it was titled as using gas so I had to go DMV they looked it up and it was coded as electric but titled as using gas so sent back and have a title done

 

[Nemy]

In my state, when you do a purchase with a loan (or one with Ford Options I would assume), you get issued a title with a lien on it. When you pay it off, you still have a title with a lien on it, and a letter from Ford that says the lien is released. No new title is issued. I can go to the Michigan Secretary of State's (i.e. our DMV) and pay to get a new title. Or, when I sell the car (2013 F-150), I can sign the title and hand the letter to the buyer and let them get their new title. Neither Ford, nor the state, will issue me a new title for free.

Ya except mine says lsse (lessee) beside my name and down below it has sih (security interest holder) and lssr (lessor) both signed off for the release.

Edit: I forgot to say in the original post that the dealer told me to bring it back so they could get it re-issued.

 

[yngwenli]

I would think for the $7500 tax credit, all the IRS would care about is that you had a Sales Contract vs. a Lease Contract. It's pretty obvious on that form what you signed. Options is just after the sale financing (with a balloon) so I don't see how the IRS would care how you dealt with the loan piece of it.

At least that's my hope. I'm not paying off my Options early so will be claiming the credit TY2022 so probably won't affect me.

 

[Maquis]

I would think for the $7500 tax credit, all the IRS would care about is that you had a Sales Contract vs. a Lease Contract. It's pretty obvious on that form what you signed. Options is just after the sale financing (with a balloon) so I don't see how the IRS would care how you dealt with the loan piece of it.

At least that's my hope. I'm not paying off my Options early so will be claiming the credit TY2022 so probably won't affect me.

Agreed. The IRS will never see the title.

 

[ChuckA]

I would think for the $7500 tax credit, all the IRS would care about is that you had a Sales Contract vs. a Lease Contract. It's pretty obvious on that form what you signed. Options is just after the sale financing (with a balloon) so I don't see how the IRS would care how you dealt with the loan piece of it.

At least that's my hope. I'm not paying off my Options early so will be claiming the credit TY2022 so probably won't affect me.

Agreed…your proof is the sales contract that lists you as owner.

 

[Nemy]

Agreed. The IRS will never see the title.

Actually a bunch of us Bolt owners (including myself) were audited and asked to send in additional docs (Bolt forum). The title was used as evidence of ownership and vin. Some people were sent bills and rejections.

I'd rather avoid the issue upfront and not have to deal with appeals/explanation letters etc. Plus you're given a tight timeline to send in docs and 30 days probably isn't enough to fix a title. Depending on your state credits/rebates, you might need a proper title too.

Edit: I would add that I received the letter two years after my initial purchase date... It then took another 6 months before they agreed that I could keep the $7500. So for MMEs, we're looking at potentially 2023 before we have this issue come up.

 

[MachTee]

Actually a bunch of us Bolt owners (including myself) were audited and asked to send in additional docs (Bolt forum). The title was used as evidence of ownership and vin. Some people were sent bills and rejections.

I'd rather avoid the issue upfront and not have to deal with appeals/explanation letters etc. Plus you're given a tight timeline to send in docs and 30 days probably isn't enough to fix a title. Depending on your state credits/rebates, you might need a proper title too.

Edit: I would add that I received the letter two years after my initial purchase date... It then took another 6 months before they agreed that I could keep the $7500. So for MMEs, we're looking at potentially 2023 before we have this issue come up.

Good info, thanks for the heads up. I will be sure to keep all my paper trail for years to come.

Since 2018, I've claimed two $7500 EV and a 30% solar system tax credits. This year I will be claiming a PHEV and possibly another EV. Decent chance Uncle Sam pays me a visit.

Back to the OP. It seems it's the dealership that messed up the DMV paperwork. Correct me if I'm wrong. If the vehicle was registered as a lease, shouldn't the registration will show Ford as the owner? I did Options on my MME last year. Paid it off after 2 weeks, and received my title shortly after which was suprising as I didn't think the DMV will get them the title that fast.

 

[generaltso]

Actually a bunch of us Bolt owners (including myself) were audited and asked to send in additional docs (Bolt forum). The title was used as evidence of ownership and vin. Some people were sent bills and rejections.

How did they require the title as proof when a lot of people don't have the title until their loan is paid off?

 

[Neil4Real]

How did they require the title as proof when a lot of people don't have the title until their loan is paid off?

Not to mention you can get audited for past years so if you sold the car and don't even have the title anymore, if you ever did have it in your possession due to paying it off, you'd be SOL. And if you never paid the car off until you sold it, then you definitely never even touched the title and would have no record/copy of it.

 

[Nemy]

Back to the OP. It seems it's the dealership that messed up the DMV paperwork. Correct me if I'm wrong. If the vehicle was registered as a lease, shouldn't the registration will show Ford as the owner?

I actually don't know who screwed up. But even if it didn't list me as a lessee, something looked off because it had a security interest holder in ford credit and a lessor in some other company.

How did they require the title as proof when a lot of people don't have the title until their loan is paid off?

I tried looking for the letter but I might have junked it once I got the all clear. So I don't know if it was specifically requested or if the forum's general consensus was to include anything and everything. Reading over the forum again it looked like one person was specifically told to turn in a copy of their title and registration (or $9500 lol).

 

[MachTee]

Not to mention you can get audited for past years so if you sold the car and don't even have the title anymore, if you ever did have it in your possession due to paying it off, you'd be SOL. And if you never paid the car off until you sold it, then you definitely never even touched the title and would have no record/copy of it.

I'm kind of a hoarder. I make a copy of my title whenever I sell off a car for reason unknown. Finding it though may be a problem. Now that I have a reason, to keep a proper paper trail in case I get audited, I will be sure to properly file them from now on.

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