Has Anyone Sold a Mach-E that was financed with Ford Options?

[macchiaz-o]

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Sorry for the misunderstandings.

When I bought my first Mach E, I found this way to calculate the payment options since the Ford Calculator went “off line” in mid May just before I purchased. It also could only be used on desktop browser, not a mobile device. It came back in a few days. I spent several evenings calculating the options before I purchased being the most expensive car I ever bought. Just to be clear, I figured out that it is only CALCULATED this way.

I did not state it was a loan for that period or term, but I certainly am taking advantage of the low rate and I have no intention of turning my car in unless it is problematic.

Mine has the “Option” to: “ Your refinanced monthly payment will be the same as in this contract if the refinanced amount will be fully paid in 36 months or less”.

To me that sounds and calculates like it’s the same interest rate, since the payment is the exact same as it was in the contract for 36 more months.

You are correct it is certainly not a 72 month or 84 month loan, but it is the way I found it is calculated, so folks can easily calculate it on their own for a payment approximation.

The Ford calculator is quirky and I got tired of having to adjust everything (down payments etc) and I did a full Excel sheet to see which way I wanted to go, extra principle, more down and compare with my credit Union rates, which are terrible in Maine.

Calc it on Ford.com and run it a Loan calculator as described above. You get the pretty much the same numbers, less or more depending on the mileage options. I actually figured out how the mileage formula and how it effects the payment as well, but have forgotten since.

As stated above, my contact has the option of continuing for 36 more months at the same payment if in good standing, refinancing it or turning it in.

I think Options is the best new car financing plan I have ever seen. I liked it so much, I did it twice.

Enjoy and I am glad I created so much activity for the forum.

This is the spreadsheet I made for myself, for the same reasons that you two made yours.

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

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[RhodyGT]

How do you arrive at $105.20? How does this number relate to the balloon amount?

Using Excel after I ran the amort table using the 72 month period, thanks to @Nklem for the tip!, I then deleted months 37 on and used the principal balance at month 36 plus the interest due at month 36, based on the 72 month amort, and found what they balloon payment would be. (Notice in month 36 I deleted the principal portion of the monthly payment) It doesn’t match Ford because they are using the lease concept of residual. The residual is the balloon payment amount. So then I goalseek the month 36 balloon payment to equal the residual by changing a factor that adds to the calculated 72 month payment. That goalseek gives me the added $105.20. In essence, this is the additional principal they want you to pay due to expected depreciation. That is how the lease concept blends into the finances model.

 

[macchiaz-o]

Using Excel after I ran the amort table using the 72 month period, thanks to @Nklem for the tip!, I then deleted months 37 on and used the principal balance at month 36 plus the interest due at month 36, based on the 72 month amort, and found what they balloon payment would be. (Notice in month 36 I deleted the principal portion of the monthly payment) It doesn’t match Ford because they are using the lease concept of residual. The residual is the balloon payment amount. So then I goalseek the month 36 balloon payment to equal the residual by changing a factor that adds to the calculated 72 month payment. That goalseek gives me the added $105.20. In essence, this is the additional principal they want you to pay due to expected depreciation. That is how the lease concept blends into the finances model.

With the goal seeking and modified payment for month 36 and all, this sounds to me clearly not the same thing as a 72 month loan. But if this works for you and it achieves the correct numbers, then that's fantastic!

I did the balloon loan math by hand in the initial version of my spreadsheet but then my brother from another mother (@GoGoGadgetMachE) pointed out the PMT function in Excel, which can do the same work but with a lot less algebra. So I switched over to that. It's cleaner, clearer, and I suppose more familiar to finance people. (I don't work in finance or anything related to it so this was all a tremendous learning exercise for me.)

 

[RhodyGT]

With the goal seeking and modified payment for month 36 and all, this sounds to me clearly not the same thing as a 72 month loan. But if this works for you and it achieves the correct numbers, then that's fantastic!

I did the balloon loan math by hand in the initial version of my spreadsheet but then my brother from another mother (@GoGoGadgetMachE) pointed out the PMT function in Excel, which can do the same work but with a lot less algebra. So I switched over to that. It's cleaner, clearer, and I suppose more familiar to finance people. (I don't work in finance or anything related to it so this was all a tremendous learning exercise for me.)

I am using the PMT function. If you got the same answer great. I thought you had said you were close but not exact. I’m getting the exact numbers so I know it works.

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