More Options help needed ASAP, please!

[Kitten]

I apologize if this has been addressed, I didn't have time to do a thorough search and I'm new to this forum (spent the past year learning a lot on another forum). Here's my situation:

Ordered MachE GT in April 2021
Arrived yesterday. Dealer is clueless about the Options plan and can't get his numbers anywhere close to where Ford Options calculator has them. Sat at the dealership for 3 hours and left with no car. Got a call today after they spoke with Ford Credit - my numbers are correct. However, the dealer is adding 2% to the apr for his reserve, bumping my APR to 3.4, which negates a big reason why I was doing Ford Options in the first place - the $2,500 incentive. Makes sense at 1.4, not so much at 3.4. The way I see it, here are my options:

1) Sign for 36 months at the lowest mileage (or maybe it doesn't matter), get my $2,500, and immediately pay off the loan. Downside - I own a car I never intended to keep.

2) Sign for 36 months at the mileage I need, get my $2,500, pay the loan & interest, turn it in after 35 months. Downside - I hate paying interest

3) Convince myself $2,500 isn't worth the aggravation, scrap the Options plan and just buy the car. Downside - I own a car I never intended to keep and paid $2,500 more than I should have for it.

Am I missing anything here? I'm trying to remain pleasant but I feel like the finance guy is trying to screw me and it's making me made. I don't want to burn bridges, especially if I get a glitchy vehicle and need frequent service and loaners. But at the same time...come on!

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[RickMachE]

Option #3 would be moronic, given option #1.

4) Do #1, but refinance at a credit union like PenFed for under 2%.

Personally, I think making 3 years of payments on anything, and then handing someone the keys, is a bad decision. If the market price is lower, then keep it and drive it until it dies.

 

[hbirring01]

Whats wrong with owning the car? Very little maintenance cost, no fuel cost, Most places have free charging and reserved spots up front. When you consider the cost of a car $50k ish, 2500 is very negligible in my opinion.

 

[Kitten]

Thanks for the replies. I agree, #3 would be moronic, given option #1. I like to lease bc I like something new every 3 years. I know I can sell/trade it after 3, but mentally, it's easier for me to HAVE to do it.

 

[Nklem]

It sucks that they can modify the interest to their liking. Did you confirm that was Legit? I thought the rates came from Ford Motor Credit and were fixed.

 

[Kitten]

It sucks that they can modify the interest to their liking. Did you confirm that was Legit? I thought the rates came from Ford Motor Credit and were fixed.

Apparently they can do whatever they want. Given that this is my 7th ford vehicle and I have an electric f-150 on reserve at this dealership, they seem to be incredibly short sighted

 

[Maquis]

@hybrid2bev , anything to add?

 

[generaltso]

Apparently they can do whatever they want. Given that this is my 7th ford vehicle and I have an electric f-150 on reserve at this dealership, they seem to be incredibly short sighted

Tell them that if they don't give you the 1.4%, you intend to pay off the loan immediately. They likely won't want you to do that because they would lose their commission on the loan if it's paid off within 90 days (but you'd still get the $2500). I would think they'd rather have the commission on the 1.4% then no commission on the financing at all.

 

[hybrid2bev]

@hybrid2bev , anything to add?

The dealer is allowed to mark up the rates.

I would say what @generaltso said. If you refi the dealer will not get their reserve and may get charged back for the bonus cash amount too.

 

[Mach E JT]

Just buy it with Options to get the rebate and refi immediately. The residuals are pitifully low on the Options plan. Drive it for a year, or two, or even three, and then sell it when you want something new. It’s not complicated.

 

[Pushrods&Capacitors]

The dealer is allowed to mark up the rates.

I would say what @generaltso said. If you refi the dealer will not get their reserve and may get charged back for the bonus cash amount too.

This is the answer. Get your $2500, shaft the dealer that tried to screw you, then, move your Lightning order elsewhere for good measure.

 

[RickMachE]

PenFed rates for refinancing a new car loan:

36 month - 1.79%
48 month - 1.99%
60 month - 1.99%
72 month - 2.39%
84 month - 3.99%

 

[KZ6e1e]

Thanks for the replies. I agree, #3 would be moronic, given option #1. I like to lease bc I like something new every 3 years. I know I can sell/trade it after 3, but mentally, it's easier for me to HAVE to do it.

your 36 payment is so large that it could mentally force you to turn it in and change cars

 

[Nklem]

It sucks that they can modify the interest to their liking. Did you confirm that was Legit? I thought the rates came from Ford Motor Credit and were fixed.

Ford Credit has had great support in the past.

I have sent them this question. “ A friend is buying an ordered Mach E. The dealer is “marking” up the options interest rate above the advertised rate. Is that allowed? They wanted to do Options but this is troubling. Thank you! ”

I do agree if time is important, but and refi.

There is an EV rate at an online credit union, “Digital Credit Union” in for 1.49% up to 65 months I think.

But Just so you know your options payment is based on a 6 year (36 month Options) or 7 year (48 month options) regular loan at the interest rate you choose with a slight adjustment for mileage. So if you refi for a 3 or 4 year term your payment will be quite a bit higher, even with no interest.

 

[hybrid2bev]

Ford Credit has had great support in the past.

I have sent them this question. “ A friend is buying an ordered Mach E. The dealer is “marking” up the options interest rate above the advertised rate. Is that allowed? They wanted to do Options but this is troubling. Thank you! ”

Your reply will probably go like this:

Thank you for contacting us. Contract APR negotiation is between the customer and their dealer. That is not something Ford Credit can assist with.

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