Leasing or Buying another Ford after Ford Options term

[hybrid2bev]

I sent them the Ford website, which seems pretty clear about their trade-in policy.

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

Yes, I’m familiar. ?

??

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[HuntingPudel]

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/

I can only tell you that I was not at the end of my Options contract and my dealer just did a straight trade-in with me. I still owed a bit more than my car's trade-in value was, so that extra amount got rolled into my new lease. ??

 

[devmach-e]

I can only tell you that I was not at the end of my Options contract and my dealer just did a straight trade-in with me. I still owed a bit more than my car's trade-in value was, so that extra amount got rolled into my new lease. ??

So in other words, they didn't forgive the "negative equity".

 

[Gimme_my_MME]

There is currently a deal where you can get an additional $2k for getting a new car if you had options. You don't even have to turn on the car to Ford

 

[IgorKl]

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.

Did your dealer confirm forgiveness program for ford options negative equity?

 

[ridgebackpilot]

Did your dealer confirm forgiveness program for ford options negative equity?

Yes, but so far they haven't agreed to waive excess mileage charges due under my original Options contract. The Ford website it’s pretty clear that the excess mileage charges are waived when you trade in your car on a new Ford, but the dealer can’t seem to confirm that. So I'm reaching out to other dealers in the area to see if they're able to do that.

 

[IgorKl]

Yes, but so far they haven't agreed to waive excess mileage charges due under my original Options contract. The Ford website it’s pretty clear that the excess mileage charges are waived when you trade in your car on a new Ford, but the dealer can’t seem to confirm that. So I'm reaching out to other dealers in the area to see if they're able to do that.

Please keep posted. I’ll try to contact couple Sf Bay Area dealers to . I’m almost 20k miles over my limit with 2 years left.

 

[ridgebackpilot]

Well, the situation goes from bad to worse. I took my 2022 into another Ford dealer today. They called Ford Credit and told me that if I turn my car in now, with 15 months to go on my Options contract, I’d have to pay not only excess mileage charges but all the payments due under my contract!

I'm beginning to think my car will be essentially worthless by the time my contract is up in March 2026. As the dealer put it today, “No one wants to buy a used EV with 100K miles!” I'm sure he's right about that, at least with respect to uninformed EV buyers..

My only hope at this point is that Ford develops a forgiveness program at some point. Without that, I'll have no choice but to pay (or finance) the balloon balance or turn it in to Ford and pay the excess mileage charges.

 

[Snakebitten]

........... the dealer put it today, “No one wants to buy a used EV with 100K miles!” I'm sure he's right about that.

Oh I would!
And for the exact reason the dealership says I wouldn't. ?

In fact, a well maintained ICE vehicle that rolls over that milestone can often offer a very nice value equation.
I'm convinced that an EV can be even more appealing.

Of course that doesn't go in the favor of the previous owner.

 

[devmach-e]

Well, the situation goes from bad to worse. I took my 2022 into another Ford dealer today. They called Ford Credit and told me that if I turn my car in now, with 15 months to go on my Options contract, I’d have to pay not only excess mileage charges but all the payments due under my contract!

I'm beginning to think my car will be essentially worthless by the time my contract is up in March 2026. As the dealer put it today, “No one wants to buy a used EV with 100K miles!” I'm sure he's right about that, at least with respect to uninformed EV buyers..

My only hope at this point is that Ford develops a forgiveness program at some point. Without that, I'll have no choice but to pay (or finance) the balloon balance or turn it in to Ford and pay the excess mileage charges.

Your car won’t be worthless. Worthless implies that you wouldn’t get anything for it. Not even $10. In reality, you’d probably be able to get at least $10K or $15K for it. I see Bolts with over 100K miles going for $12K.

Not sure why you expect Ford to offer forgiveness for the overage mileage, or the negative equity. You took out a loan with a balloon payment and agreed to abide by mileage limits. It isn’t Ford’s fault you drove a lot. Nor is it their fault you want to trade the car in 15 months early.

You could always refinance the existing loan to get rid of the Ford Options plan, essentially paying off the car and getting out from underneath the mileage limits. Then turnaround and sell the car, pocket the proceeds, and go find a new Mach-E.

Really, your best bet is to drive the car for another 15 months and then decide what to do with the car. Under the current Ford Options contract you can turn the car in in 15 months, and then lease/buy a new car from Ford and the mileage overage will be forgiven. At least that’s how I interpret things. But you have to wait the 15 months, and have to continue to make the payments.

 

[IgorKl]

Your car won’t be worthless. Worthless implies that you wouldn’t get anything for it. Not even $10. In reality, you’d probably be able to get at least $10K or $15K for it. I see Bolts with over 100K miles going for $12K.

Not sure why you expect Ford to offer forgiveness for the overage mileage, or the negative equity. You took out a loan with a balloon payment and agreed to abide by mileage limits. It isn’t Ford’s fault you drove a lot. Nor is it their fault you want to trade the car in 15 months early.

You could always refinance the existing loan to get rid of the Ford Options plan, essentially paying off the car and getting out from underneath the mileage limits. Then turnaround and sell the car, pocket the proceeds, and go find a new Mach-E.

Really, your best bet is to drive the car for another 15 months and then decide what to do with the car. Under the current Ford Options contract you can turn the car in in 15 months, and then lease/buy a new car from Ford and the mileage overage will be forgiven. At least that’s how I interpret things. But you have to wait the 15 months, and have to continue to make the payments.

The problem is the dealers who still playing bait and switch game. Ford is trying to move certain models and offers various incentives. Some dealers do not have knowledge about incentives posted on Ford website at all, some doesn’t know how they work …. Technically, they refuse to use certain programs that Ford place to move 2024 Mach-Es. Also, the amount of direct rebates from Ford is pretty large so it’s definitely would help someone to offset negative equity.

The future value of MME is very uncertain so to try to jump out of ‘21/‘22 contracts makes sense if people can find the right set of stackable incentives.

 

[hybrid2bev]

Well, the situation goes from bad to worse. I took my 2022 into another Ford dealer today. They called Ford Credit and told me that if I turn my car in now, with 15 months to go on my Options contract, I’d have to pay not only excess mileage charges but all the payments due under my contract.

Yes. That’s how a lease TURN IN works. No surprise there.

Don’t forget that you'd also owe any excess wear and the disposal fee too.

Ford Options is treated like a lease in a turn in scenario, even though it’s a retail contract.

 

[IgorKl]

Yes. That’s how a lease TURN IN works. No surprise there.

Don’t forget that you'd also owe any excess wear and the disposal fee too.

Ford Options is treated like a lease in a turn in scenario, even though it’s a retail contract.

Yes. That’s how a lease TURN IN works. No surprise there.

Don’t forget that you'd also owe any excess wear and the disposal fee too.

Ford Options is treated like a lease in a turn in scenario, even though it’s a retail contract.

Please separate TURN IN and TRADE IN.
Ford website contains promo for negative equity forgiveness/ trade in help, but dealers don’t want to apply it.

 

[hybrid2bev]

Please separate TURN IN and TRADE IN.
Ford website contains promo for negative equity forgiveness/ trade in help, but dealers don’t want to apply it.

Sounds like telling the dealer about the Ford Options contract just confuses them. They just need to ignore the Ford Options part and treat the transaction as any other retail trade-in. Book out the vehicle, calculate what they want to offer as the trade-in value then call Ford Credit for the payoff amount, apply the rebates and go from there.

 

[devmach-e]

Sounds like telling the dealer about the Ford Options contract just confuses them. They just need to ignore the Ford Options part and treat the transaction as any other retail trade-in. Book out the vehicle, calculate what they want to offer as the trade-in value then call Ford Credit for the payoff amount, apply the rebates and go from there.

I think the issue here is that the OP seems to think that Ford will forgive any negative equity on the loan (i.e they owe more than the car is worth as a trade-in) and also forgive the mileage overages. I can see forgiving the mileage overage here, but I can’t see Ford forgiving $10K or more in negative equity.

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