Incentives may be gone after they expire on 7/6

[Scarpia]

From Ford's website, just picked a random Mach E and clicked on "estimating your payment":

Pretty sure that's the word "incentive" in there next to the $2,600. But we don't need to call it that.

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[deadduck]

That's why I was so surprised that my dealer didn't even want to look at my trade-in (2018 Mitsubishi Outlander PHEV GT). He said that there was a surplus of them on the market, so they wouldn't give me what I would want for it (not that he even asked what I wanted for it), which was a really dumb thing to say since it's common knowledge that there's a shortage of used cars. Oh well, I just sold it to Vroom instead. Their loss.

A surplus of Outlander PHEV's? I guess in the sense that if no one wants them, one is a surplus.

 

[deadduck]

I would think those incentives aren't going to last, regardless of Ford program changes. Why incentivize a vehicle that's selling at a $5K mark up?

 

[generaltso]

A surplus of Outlander PHEV's? I guess in the sense that if no one wants them, one is a surplus.

Based on the fact that mine and every other Outlander PHEV that I've seen hit Vroom has immediately sold for a premium, I don't think that's the case.

 

[supertramp]

I'm pretty sure Ford considers Ford Credit Bonus Cash programs to be types of Incentives. And then there's this:

incentive
[inˈsen(t)iv]

NOUN

1. a thing that motivates or encourages one to do something.
   "there is no incentive for customers to conserve water"
   synonyms:
   inducement · motivation · motive · reason · stimulus · 
   [more]
   • a payment or concession to stimulate greater output or investment.
     "tax incentives for investing in depressed areas" · 
     [more]

Good for Ford if they consider it so, but they are not paying my bills, so, I will stick with what I consider to be more appropriate (for me) definition. I actually chose Ford Options when I bought my MME, but only for a choice to buy out or return a vehicle after 48 months.

 

[macchiaz-o]

Good for Ford if they consider it so, but they are not paying my bills, so, I will stick with what I consider to be more appropriate (for me) definition. I actually chose Ford Options when I bought my MME, but only for a choice to buy out or return a vehicle after 48 months.

So the $2500 discount didn't sway your decision?

The $1000 that I received definitely stirred my consideration for Options, and in doing the math, helped justify my decision to use Options. Otherwise I would have made a different choice.

 

[Scarpia]

Good for Ford if they consider it so, but they are not paying my bills, so, I will stick with what I consider to be more appropriate (for me) definition. I actually chose Ford Options when I bought my MME, but only for a choice to buy out or return a vehicle after 48 months.

It isn't just Ford that considers it so. You've just made the point that the incentive worked.

Without the $2,600, Ford Options would have been much more expensive, so you would not have chosen it. With the incentive, the cost came down to make it more equitable, enticing you to use Ford Options - which is what Ford obviously intended.

That's the very definition of an incentive.

 

[machefan]

It isn't just Ford that considers it so. You've just made the point that the incentive worked.

Without the $2,600, Ford Options would have been much more expensive, so you would not have chosen it. With the incentive, the cost came down to make it more equitable, enticing you to use Ford Options - which is what Ford obviously intended.

That's the very definition of an incentive.

I’m sure the Ford Options incentive will stick around for a while until the interest rates tick upwards. At 2.25% and allowing the owner to take the tax write off, gives way for many more buyers. They also have to sell the notion of owing a BEV, easy for us here but we are a small family.

 

[ARK]

I cannot agree - it's a pseudo-incentive - together with that "incentive" you have to have 2.25% rate instead of 0.9% rate with a regular financing - so, if you wanna call it an "incentive", it's up to you...

Good for Ford if they consider it so, but they are not paying my bills, so, I will stick with what I consider to be more appropriate (for me) definition. I actually chose Ford Options when I bought my MME, but only for a choice to buy out or return a vehicle after 48 months.

That last clause I bolded is why the Options rate is higher than the finance rate. When you buy the car (i.e. finance it the traditional way), Ford/the dealer has sold you the vehicle and they are forever done with it, they don't have to repurchase it from you in the future even if you want them to.

But when you go with Options, Ford is not done with the vehicle. They have given you the legal right to sell it back to them. Even if they would prefer not to take it back at that point, they have no choice, they have agreed to buy it back. This is valuable to a buyer, just as you pointed out (the bolded portion in the quote), it swayed your decision. It did for me too.

If the vehicle is worth as much as what's left on the loan, the trade ends up being a wash. If the car is worth more than you owe, Ford will give you a credit to use on a new vehicle purchase. But if the car is worth less than what you still owe on the loan, you don't need to make up the difference, Ford will just eat the loss. In other words, you can't lose - it either ends up being a fair trade of some sort or Ford ends up eating a loss on the loan.

So this is a tremendously favorable term to the buyer. But Ford's not a charity, they are in the business of making money. So they aren't going to give the buyer the right to do this to them for free. Part of it is the $475 disposal fee, but part of it is also the higher interest rate. By charging the higher interest rate, they are billing you for this contractual right that they are handing over to you whether you decide to exercise it or not - you have to pay them just to get this contractual right in the first place.

That's why the $1,000/$2,500 is an incentive. The contractual terms of the deal on Options are a lot more favorable to the buyer, so Ford would/should charge buyers more for agreeing to these terms. That the $1,000/$2,500 rebate allows you to gain this right without really paying more than traditional financing is what makes this cash back a true incentive.

 

[Mandretti]

We picked up our Premium yesterday and only the $100 rebate. We got 1.9 % from Ford Finance with a 5 year loan. I'm going to check on the rebate. We paid a 4k dealer markup!

 

[barryvo]

We picked up our Premium yesterday and only the $100 rebate. We got 1.9 % from Ford Finance with a 5 year loan. I'm going to check on the rebate. We paid a 4k dealer markup!

Wow on the $4K ADM? Did you order the car or take from inventory? Did you know about the ADM in advance or was it sprung on you? Congrats!

 

[Mandretti]

This one was from dealer inventory in Portland, and they informed me when I reserved it. My local dealer handling my online order had no markup but the car is another 3-4 months away from delivery.

It's a fun car!

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