How is the Options incentive reflected on the purchase price/contract?

[Kitten]

Is it just subtracted from the sticker price? Is it considered a down payment? Is the tax is calculated on the full price, before the incentive is applied? I'm looking over my paperwork again, and I can't figure out their numbers.

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[macchiaz-o]

The only difference between the incentive and your own cash contribution to a down payment is that the incentive is pulled from Ford's wallet instead of your wallet.

No impact to taxes, etc. It's part of the down payments.

 

[Neil4Real]

Is it just subtracted from the sticker price? Is it considered a down payment? Is the tax is calculated on the full price, before the incentive is applied? I'm looking over my paperwork again, and I can't figure out their numbers.

It should be under "rebates" and I don't believe that it reduces your taxes owed, you still pay taxes on the full purchase price. So you'd see: Purchase price: $50k, rebates: $2,500, etc.

 

[Kitten]

Thank you. I'm waiting on my first statement from Ford Credit to see if it clears up some questions I have before diving in further.

 

[Neil4Real]

Thank you. I'm waiting on my first statement from Ford Credit to see if it clears up some questions I have before diving in further.

Feel free to PM your contract, if you're able to scan it in.

 

[Kitten]

Feel free to PM your contract, if you're able to scan it in.

Thanks, I'll do that as soon as I have a chance.

 

[Triggerhappy007]

I know in some states you pay tax before rebates and in some, after rebates, and some don't even have sales tax at all.

 

[Kitten]

I know in some states you pay tax before rebates and in some, after rebates, and some don't even have sales tax at all.

My state taxes before rebate (should have looked that up before posting here, sorry). But I have some other questions about how they put the contract numbers together, but I'll wait until I get my official statement from Ford Credit. Thank you.

 

[hybrid2bev]

My state taxes before rebate (should have looked that up before posting here, sorry). But I have some other questions about how they put the contract numbers together, but I'll wait until I get my official statement from Ford Credit. Thank you.

Your monthly statement from Ford Credit is not going to show you anything different numbers wise than your financing contract already would right now (except your account number).

 

[Triggerhappy007]

My state taxes before rebate (should have looked that up before posting here, sorry). But I have some other questions about how they put the contract numbers together, but I'll wait until I get my official statement from Ford Credit. Thank you.

Did you get a page that says, retail purchase agreement or something similar? That's the page that says what the price of the vehicle, rebates, taxes, and fees.

 

[RickMachE]

Is it just subtracted from the sticker price? Is it considered a down payment? Is the tax is calculated on the full price, before the incentive is applied? I'm looking over my paperwork again, and I can't figure out their numbers.

Hopefully it all makes sense eventually, but in hindsight, never sign any paperwork where you don't understand each and every word and agree with each and every number.

Car dealers excel at showing you all this stuff at 6PM, 10 minutes before closing. Screw that. Sit there and go through each and every piece of paper. Have them send paperwork via PDF prior and read it all. Numbers too. And refuse to pick a vehicle up at the end of a day - get it when you're bright-eyed and bushy tailed. Ask them how every single number is calculated.

 

[Kitten]

Yes, so I have both a retail purchase agreement and a retail installment contract. I've put in bold the relevant parts so you don't have to read all my words. ?

On my retail purchase agreement, the 2,500 options is deducted as a line item called Factory cash/rebate assigned to dealer, thus lowering my total due by 2,500. On the retail installment contract, it's factored as a down payment and therefore increases by 2,500 the Total Sale Price (see breakdown below). I haven't gotten my first statement from Ford Credit yet, so I'm not entirely sure what my monthly payment, total interest paid, and total of payments will actually add up to under the new interest rate.


My GT has sticker of 64,440 (inc. options and D&D). With the X plan, the base selling price ended up being 63,426. This is the starting number on my retail purchase agreement from the dealer. Add in doc fee ($250) Taxable subtotal is 63,676. 8% sales tax on that is 5,094 (contract says 5,098). Add in $94 dollars of other fees and the total due on the car is 68,868. The 2,500 options incentive is under Factory cash/Rebate assigned to dealer. With 0 down payment, my balance due on the purchase agreement is is 66,368.


Then, on the Vehicle Retail Installment Contract for my state, it shows: APR 3.4% (this was later corrected to 1.4%), Finance charge $4,816 (assuming this is interest I would have paid at the end under 3.4%), the amount financed 66,368, and the total I will have paid at the end 71,184. Then it says Total Sale price of your purchase on credit, including your down payment of 2,500 is 73,683.90.

 

[Kitten]

Hopefully it all makes sense eventually, but in hindsight, never sign any paperwork where you don't understand each and every word and agree with each and every number.

Car dealers excel at showing you all this stuff at 6PM, 10 minutes before closing. Screw that. Sit there and go through each and every piece of paper. Have them send paperwork via PDF prior and read it all. Numbers too. And refuse to pick a vehicle up at the end of a day - get it when you're bright-eyed and bushy tailed. Ask them how every single number is calculated.

TOTALLY! I truly thought I had it all nailed down, and I had even left the dealership first day I went to pick it up because our numbers were so off. On day 2, the numbers sounded right, and I did read through the contract, but apparently not as thoroughly as I did on the re-read (excited to get the car I guess.). Asking for it prior would have been a good idea. Thanks for the tips.

 

[Triggerhappy007]

Yes, so I have both a retail purchase agreement and a retail installment contract. I've put in bold the relevant parts so you don't have to read all my words. ?

On my retail purchase agreement, the 2,500 options is deducted as a line item called Factory cash/rebate assigned to dealer, thus lowering my total due by 2,500. On the retail installment contract, it's factored as a down payment and therefore increases by 2,500 the Total Sale Price (see breakdown below). I haven't gotten my first statement from Ford Credit yet, so I'm not entirely sure what my monthly payment, total interest paid, and total of payments will actually add up to under the new interest rate.


My GT has sticker of 64,440 (inc. options and D&D). With the X plan, the base selling price ended up being 63,426. This is the starting number on my retail purchase agreement from the dealer. Add in doc fee ($250) Taxable subtotal is 63,676. 8% sales tax on that is 5,094 (contract says 5,098). Add in $94 dollars of other fees and the total due on the car is 68,868. The 2,500 options incentive is under Factory cash/Rebate assigned to dealer. With 0 down payment, my balance due on the purchase agreement is is 66,368.


Then, on the Vehicle Retail Installment Contract for my state, it shows: APR 3.4% (this was later corrected to 1.4%), Finance charge $4,816 (assuming this is interest I would have paid at the end under 3.4%), the amount financed 66,368, and the total I will have paid at the end 71,184. Then it says Total Sale price of your purchase on credit, including your down payment of 2,500 is 73,683.90.

What do you mean it was later corrected to 1.4%? You signed when it said 3.4%, that's your contract. Do you have the doc that you signed when it changed to 1.4%?

I'm thinking the total sales price is just a FYI. It seems like your numbers are adding up at 3.4%. You might be able to log on to Ford Credit before getting your statement.

 

[Kitten]

What do you mean it was later corrected to 1.4%? You signed when it said 3.4%, that's your contract. Do you have the doc that you signed when it changed to 1.4%?

I'm thinking the total sales price is just a FYI. It seems like your numbers are adding up at 3.4%. You might be able to log on to Ford Credit before getting your statement.

yes, but it was just a strikeover on the interest rate; I should have made them recalc the numbers. Ultimately, the balance due number is the same as what I calculated so hopefully there won't be some big discrepancy I have to fix after the fact. Doing stuff in the wrong order is a hallmark of mine. I don't see my account # anywhere, which I need to login to ford credit. And some of the links for Ford Credit are bad (shocking, I know) I'm currently on a chat to get the number

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