How's this deal look? GT arriving Thursday!

[moparguy]

CT is a ripoff state and the sales tax is 7.75% on cars over $50k.

California is 7.5% regardless of the price, 7.75% after $50k is actually good, because you pay 6.35% for cars that cost less.

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[ChuckA]

Did not know about the increased sales tax over $50K in CT.

I'm fairly certain you're not charged interest on the balloon payment during the term of the 3yrs Options.

You are financing the full $63k. You own the car under options. Take my word, there’s no free lunch. Call Ford Credit and ask.

 

[ChuckA]

California is 7.5% regardless of the price, 7.75% after $50k is actually good, because you pay 6.35% for cars that cost less.

I was pointing out to OP that $1100 of his difference was because the CT 6.35% sales tax becomes 7.75%. What irritates me is the optional ER battery cost me $1100 in additional sales tax.

 

[ctenidae]

What irritates me is the optional ER battery cost me $1100 in additional sales tax.

Luxury tax on a utility item. Sounds about right.

 

[MachTee]

You are financing the full $63k. You own the car under options. Take my word, there’s no free lunch. Call Ford Credit and ask.

Yes you're right, my mistake. I made the wrong assumption in thinking of Options like a lease. So the numbers more or less add up then, with the interest on the full $63K and increased sales tax rate.

Yes, I did Options myself but I fully paid it off after 2 weeks. Ford even sent me a check for $2x.xx for over payment of interest. I never looked deeply into interest paid since I fully intended to pay it off right away. Only did Options for the $2500 rebate.

 

[ChuckA]

Yes you're right, my mistake. I made the wrong assumption in thinking of Options like a lease. So the numbers more or less add up then, with the interest on the full $63K and increased sales tax rate.

Yes, I did Options myself but I fully paid it off after 2 weeks. Ford even sent me a check for $2x.xx for over payment of interest. I never looked deeply into interest paid since I fully intended to pay it off right away. Only did Options for the $2500 rebate.

Good move. I’m surprised you got the interest refund. Must be a legal thing. $2500 for free, can’t beat that.

 

[Dancefreak]

your also getting up to $7500 Federal Tax Credit. If youre in Cali you also get an additional $750 CVRP on top of the $2500.

There are two CA programs.

The 750 credited at time of purchase is not CVRP. It's the California Clean Fuel Reward which is funded by the utility companies. Everyone buying or leasing an EV is eligible as long as the dealer participates in the program.

CVRP is funded through the state budget and is a separate $2000 rebate check you can apply for if you qualify. (First EV purchase/lease and your income doesn't pass the threshold.)

 

[ctenidae]

THe finance guy got 84-months at 6.84%, Bank of America just gave me 72 months at 5.29%

 

[Motomax]

THe finance guy got 84-months at 6.84%, Bank of America just gave me 72 months at 5.29%

Isn’t options a much lower interest rate? With the 2500 bonus it’s a no brainer. Even if you refinance the balloon payment for another two years at a higher rate you’re still ahead.

 

[ctenidae]

Isn’t options a much lower interest rate? With the 2500 bonus it’s a no brainer. Even if you refinance the balloon payment for another two years at a higher rate you’re still ahead.

It's basically $200 more a month for Options, and if interest rates get to 8% it's kind of a wash. This is $0 down, sign and drive.

In other news, my insurance company just set the agreed value at $94k. Must have seen the markups dealers are doing...

 

[JohnFoxeSheets]

It's basically $200 more a month for Options, and if interest rates get to 8% it's kind of a wash. This is $0 down, sign and drive.

In other news, my insurance company just set the agreed value at $94k. Must have seen the markups dealers are doing...

You mentioned in your OP that you might sell the car in 3-4 months. If that's a serious consideration, then Options clearly wins by far. But if you plan to keep the car and you're concerned about where interest rates will be in 3-4 years, then it's an interesting quandary.

Two thoughts: 1) BofA is willing to finance for 72 months @ 5.29%, so obviously they're not too concerned about interest rates. 2) While we're certain to see interest rates go up for the next year or two, I suspect that we'll see the trend reverse as the economy starts to cool down.

Personally if I were in your situation I'd do Options for 48 months. That seems like the safest bet to me.

 

[Motomax]

It's basically $200 more a month for Options, and if interest rates get to 8% it's kind of a wash. This is $0 down, sign and drive.

In other news, my insurance company just set the agreed value at $94k. Must have seen the markups dealers are doing...

you really shouldn’t make a decision based on “monthly” cost of a loan, you need to look at total cost.
Btw if you refinance the balloon amount 30k at 8% (which is unlikely)for two years you’re looking at 2500 in interest so let’s cancel out the bonus for simplicity. Your 6 year Loan at 5.29% only makes sense if the options rate is higher, which it’s not.

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