Leasing or Buying another Ford after Ford Options term

[mikeinet]

No. If you return the car at the end of the Options contract (not trade-in) the wholesale value is irrelevant to you as the customer. Ford takes the depreciation hit not you.

Options is not a lease but in this case it’s treated like a lease. Like a lease return you would only owe for the mileage, disposal fee and excess wear (and any past due payments/fees). Some of which could be waived if you buy a new Fire.

This.

Sponsored

 

[mikeinet]

I’m going to be turning in my ‘21 off the options program.
thought of selling it, but it’d pretty much be a wash.
had the car inspected… and I have 3/32 tires and a 3” wide deep gash in a door (thanks concrete corner wall…) and it cleared all their policies and will owe $0 upon turning it in

im under mileage, but dealer didn’t make any comments about even looking or caring to check

 

[Gloff]

I was expected something like $0.25 per mile for over agreed number, but Ford Options website published by Ford states that they forgive any exceed miles, no inspection if you buy new Ford/Lincoln and finance with Ford Credit.
I was wondering if someone already tried it. I spoke with SoCal dealer at EvFest, but he constantly mixed up lease and Ford Options. He mentioned that it would be probably like lease process, but it contradicts website. I still have 2.5 years on my contract, but trying to get ready.

@Gloff ,
Any chance you can provide clarification? Does https://www.ford.com/finance/finance-options/ford-options/ contain correct information?

Ford won't waive the mileage if you return it, only if you trade it in. Given the values today, it's unlikely that you be even enough to trade out, so you'll likely return it. If you get a new Ford/Lincoln/CPO, they'll waive the disposal fee, but not the mileage/excess wear and use.

 

[hybrid2bev]

Ford won't waive the mileage if you return it, only if you trade it in. Given the values today, it's unlikely that you be even enough to trade out, so you'll likely return it. If you get a new Ford/Lincoln/CPO, they'll waive the disposal fee, but not the mileage/excess wear and use.

Uh... if you trade it there's nothing for Ford Credit to forgive. If Ford Credit doesn't get the car back then they have nothing to waive. If you buy the car (payoff balloon) or refi the balloon or if the Ford dealer buys the car (trade-in) there's no excess milage, disposal or wear charges.

If you return the car to Ford Credit that's when the charges can apply.

There's a procedure that can allow some fees to be waived if you renew with a new Ford.

 

[IgorKl]

Ford won't waive the mileage if you return it, only if you trade it in. Given the values today, it's unlikely that you be even enough to trade out, so you'll likely return it. If you get a new Ford/Lincoln/CPO, they'll waive the disposal fee, but not the mileage/excess wear and use.

thank you for the reply. The Ford information website looks misleading they marked "excess mileage" as "not applicable", as well as inspection and excess wear and use.

I thought that at the end of the Options you can just return the car (technically for $0 ) and pick up new one

Ford Credit Financing Options

	Trade-In and Get a New Ford or Lincoln	Keep Your Current Vehicle	Return Your Vehicle (1)
Vehicle Inspection	Not required	Not required	Required
Excess Wear and Use	Not applicable	Not applicable	Contract holder responsible for any excess wear & use
Excess Mileage	Not applicable	Not applicable	Contract holder responsible for any excess mileage
Disposal Fee	Not applicable	Not applicable	Contract holder responsible for disposal fee for vehicles turned-in and not traded-in at a Ford or Lincoln Dealership.
Contact	Contact your dealer to schedule your return	Contact Ford Credit to refinance your final balloon payment (2) or purchase your vehicle outright	Contact your dealer to schedule your return
Finalize	Return your vehicle on or before your contract maturity date and pick out your new Ford or Lincoln vehicle	Complete refinance or submit final payment before your contract maturity date	Return your vehicle on or before your contract maturity date

 

[hybrid2bev]

thank you for the reply. The Ford information website looks misleading they marked "excess mileage" as "not applicable", as well as inspection and excess wear and use.

I thought that at the end of the Options you can just return the car (technically for $0 ) and pick up new one

Ford Credit Financing Options

	Trade-In and Get a New Ford or Lincoln	Keep Your Current Vehicle	Return Your Vehicle (1)
Vehicle Inspection	Not required	Not required	Required
Excess Wear and Use	Not applicable	Not applicable	Contract holder responsible for any excess wear & use
Excess Mileage	Not applicable	Not applicable	Contract holder responsible for any excess mileage
Disposal Fee	Not applicable	Not applicable	Contract holder responsible for disposal fee for vehicles turned-in and not traded-in at a Ford or Lincoln Dealership.
Contact	Contact your dealer to schedule your return	Contact Ford Credit to refinance your final balloon payment (2) or purchase your vehicle outright	Contact your dealer to schedule your return
Finalize	Return your vehicle on or before your contract maturity date and pick out your new Ford or Lincoln vehicle	Complete refinance or submit final payment before your contract maturity date	Return your vehicle on or before your contract maturity date

The website is right. Gloff has it backwards. See my reply above.

 

[Mach-Lee]

Options is not a lease but in this case it’s treated like a lease. Like a lease return you would only owe for the mileage, disposal fee and excess wear (and any past due payments/fees). Some of which could be waived if you buy a new Ford.

Do you know what the minimum tread depth on the tires is for an Options turn-in? I can't find a spec for that.

 

[hybrid2bev]

Do you know what the minimum tread depth on the tires is for an Options turn-in? I can't find a spec for that.

It’s the same as a lease: No sidewall damage/plugs or exposed cords/belts.


https://www.ford.com/finance/lease-end/wear-and-use/

https://www.ford.com/finance/content/dam/ford64/us/pdf/lease-end/wear_use_evaluator_card.pdf

 

[Gloff]

Uh... if you trade it there's nothing for Ford Credit to forgive. If Ford Credit doesn't get the car back then they have nothing to waive. If you buy the car (payoff balloon) or refi the balloon or if the Ford dealer buys the car (trade-in) there's no excess milage, disposal or wear charges.

If you return the car to Ford Credit that's when the charges can apply.

There's a procedure that can allow some fees to be waived if you renew with a new Ford.

I know that, I was saying waived for simplicity.

 

[Gloff]

thank you for the reply. The Ford information website looks misleading they marked "excess mileage" as "not applicable", as well as inspection and excess wear and use.

I thought that at the end of the Options you can just return the car (technically for $0 ) and pick up new one

Ford Credit Financing Options

	Trade-In and Get a New Ford or Lincoln	Keep Your Current Vehicle	Return Your Vehicle (1)
Vehicle Inspection	Not required	Not required	Required
Excess Wear and Use	Not applicable	Not applicable	Contract holder responsible for any excess wear & use
Excess Mileage	Not applicable	Not applicable	Contract holder responsible for any excess mileage
Disposal Fee	Not applicable	Not applicable	Contract holder responsible for disposal fee for vehicles turned-in and not traded-in at a Ford or Lincoln Dealership.
Contact	Contact your dealer to schedule your return	Contact Ford Credit to refinance your final balloon payment (2) or purchase your vehicle outright	Contact your dealer to schedule your return
Finalize	Return your vehicle on or before your contract maturity date and pick out your new Ford or Lincoln vehicle	Complete refinance or submit final payment before your contract maturity date	Return your vehicle on or before your contract maturity date

That's exactly what it means. If you trade it or keep it, they're not applicable. If you just return it you're responsible for EWU, Mileage, and Disposal. If you return it and get a new Ford, you're only responsible for EWU and mileage, they waive the disposal.

 

[IgorKl]

That's exactly what it means. If you trade it or keep it, they're not applicable. If you just return it you're responsible for EWU, Mileage, and Disposal. If you return it and get a new Ford, you're only responsible for EWU and mileage, they waive the disposal.

Thanks for clarification. It looks like I’ll need to spend more time when shop for next car.

 

[ridgebackpilot]

I'm reviving this old thread to report on my experience at my dealer today. I went in to trade-in my 2022 Mach-E Premium for a 2024 Premium to take advantage of year-end incentives.

My Ford Options contract doesn't mature for another 15 months, but my dealer told me Ford Credit was willing to "forgive" the negative equity if I traded my vehicle in for a new one.

But when I got to the dealership, they proposed charging me $10K in excess mileage charges at $0.25 per mile, which I owe for anything over 10,000 miles per year under my original Options contract.

I asked them to check this since Ford Credit's website says excess mileage charges aren't applicable when trading in a vehicle for a new Ford. I also asked them to waive the charges, per the information on Ford's website.

The dealer called their Ford representative for help and promised to get back to me. I'll keep you all informed! Ford is offering some terrific incentives this month (including Zero percent interest), and I don't want to miss out on those due to a misunderstanding.

 

[ridgebackpilot]

I just take my contract at face value. I signed up for a certain average number of miles per year and agreed to it in writing. If I chose a larger number, Ford would make me pay more per month, or less if I chose a lower number. Likewise, if I were to have worn out or damaged part of the car, I would expect that I am responsible for taking care of that during routine maintenance. ?‍?

As @hybrid2bev said, they may choose to waive any or all of that. I certainly do not think that I will expect that any of it will be waived except for the disposal fee if I choose a new Ford. ??

@HuntingPudel the confusion stems from the fact that our original Options contracts (called a “Balloon Addendum”) addressed return of the vehicle but not trade-in on a new Ford.

That's what has changed. According to the Ford website, they are now offering to waive the fees, including disposal and excess mileage, if we trade-in our vehicles on a new Ford.

And if you do that by year's end, they're also offering to forgive any negative equity on your trade-in, just as if we returned it to them.

 

[hybrid2bev]

I'm reviving this old thread to report on my experience at my dealer today. I went in to trade-in my 2022 Mach-E Premium for a 2024 Premium to take advantage of year-end incentives.

My Ford Options contract doesn't mature for another 15 months, but my dealer told me Ford Credit was willing to "forgive" the negative equity if I traded my vehicle in for a new one.

But when I got to the dealership, they proposed charging me $10K in excess mileage charges at $0.25 per mile, which I owe for anything over 10,000 miles per year under my original Options contract.

I asked them to check this since Ford Credit's website says excess mileage charges aren't applicable when trading in a vehicle for a new Ford. I also asked them to waive the charges, per the information on Ford's website.

The dealer called their Ford representative for help and promised to get back to me. I'll keep you all informed! Ford is offering some terrific incentives this month (including Zero percent interest), and I don't want to miss out on those due to a misunderstanding.

If you trade in there’s never excess mileage or disposal fees because the dealer is buying the car from Ford Credit. You only owe excess mileage fees etc if the car goes back to Ford Credit.

From your description it sounds like maybe the dealer was talking about TURNING IN (Return Your Ford section) rather than TRADING IN.

 

[ridgebackpilot]

If you trade in there’s never excess mileage or disposal fees because the dealer is buying the car from Ford Credit. You only owe excess mileage fees etc if the car goes back to Ford Credit.

From your description it sounds like maybe the dealer was talking about TURNING IN (Return Your Ford section) rather than TRADING IN.

Yes, I'm hoping my dealership is simply confused and will be able to clarify this with Ford Credit when their offices open tomorrow. I sent them the Ford website, which seems pretty clear about their trade-in policy.

https://www.ford.com/finance/finance-options/ford-options/

Sponsored