Poll: Ford Options vs Finance

How are you paying for your Mach E?


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    236

JellyBelly

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Hi All,

I am a new buyer and contacted the dealer and they got the financing for 0.9% for 48 months and $5000 down.
Is there any incentives for taking loan with Ford.
Financing the Options plan through has 2500 or 1000 rebate . Straight financing offer you got does not. Compare on fords website... try to build your car and see the finance calculator and it will tell you incentives available. General consensus is if you get 2500 options incentive then options are better than straight financing





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Mr. Mach-E

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I updated my calculator:

https://1drv.ms/x/s!ApbGIUelGmJ-s9hQWdOSPLkXVkpcrA

The significant changes are in the X-plan pricing and the balloon amount for Options.

Based on the dealer invoice that @hybrid2bev recently posted, the plan pricing includes a discount off of the destination and delivery fee ($1100). Previously I was excluding that from the discount calculation.

As someone else suggested, it's more logical that the residual balloon amount is calculated from adusted MSRP (MSRP + residualized options, before any discounts/rebates are applied) rather than the Cash Price. So that is fixed now, too.

You should still consider this to be a rough calculator... Just to help you think through the decision process on your own.

If I lived in one of the $2,500 incentive regions, Ford Options is a NO BRAINER. It's a significant savings over paying cash. The incentive is larger than the financing costs, for someone who will keep the vehicle rather than treating it as a lease.

But I live in a $1,000 offer region... And as it turns out, Options is still a pretty good deal.

For me, 36 month Options is cheaper than 36 or 48 months of 0.9% financing.

48 month Options is about $212 more expensive than 48 months of 0.9% simple financing. So even that is not so bad... since you get the trade-in/return choices similar to a lease.

Anyway, just my thoughts. Your numbers and situations will vary.
It seems to me that by using 36 months of Ford Options, one will get $1,000 spread over 36 months versus a 48 month option. More bang for your buck.
 

Mr. Mach-E

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It seems to me that by using 36 months of Ford Options, one will get $1,000 spread over 36 months versus a 48 month option. More bang for your buck.
Having the ability to unload the Mach-E at the end of 36 months or 48 months should car values head south is also a good thing,
 

Mr. Mach-E

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Having the ability to unload the Mach-E at the end of 36 months or 48 months should car values head south is also a good thing,
Does the Ford Options require sales tax to be included in the cost or is this optional?
 

macchiaz-o

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Does the Ford Options require sales tax to be included in the cost or is this optional?
You could choose to pay the amount of the sales tax as an additional down payment amount of you prefer to do it that way. I think the limit set by Ford Motor Credit for Options loans is that your total down payment (from all sources) is 30% or less of the cash price.
 

supertramp

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I updated my calculator:

https://1drv.ms/x/s!ApbGIUelGmJ-s9hQWdOSPLkXVkpcrA

The significant changes are in the X-plan pricing and the balloon amount for Options.

Based on the dealer invoice that @hybrid2bev recently posted, the plan pricing includes a discount off of the destination and delivery fee ($1100). Previously I was excluding that from the discount calculation.

As someone else suggested, it's more logical that the residual balloon amount is calculated from adusted MSRP (MSRP + residualized options, before any discounts/rebates are applied) rather than the Cash Price. So that is fixed now, too.

You should still consider this to be a rough calculator... Just to help you think through the decision process on your own.

If I lived in one of the $2,500 incentive regions, Ford Options is a NO BRAINER. It's a significant savings over paying cash. The incentive is larger than the financing costs, for someone who will keep the vehicle rather than treating it as a lease.

But I live in a $1,000 offer region... And as it turns out, Options is still a pretty good deal.

For me, 36 month Options is cheaper than 36 or 48 months of 0.9% financing.

48 month Options is about $212 more expensive than 48 months of 0.9% simple financing. So even that is not so bad... since you get the trade-in/return choices similar to a lease.

Anyway, just my thoughts. Your numbers and situations will vary.
I think there is an error in your calculations - the tax rate is applied to the MSRP+Destination and Delivery plus+Additional Options (total without tax). Then the sales tax is added to that "total without tax" and only after that you start subtracting all the incentives and rebates - that's why your final payment is a little bit optimistic.
 

macchiaz-o

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I think there is an error in your calculations - the tax rate is applied to the MSRP+Destination and Delivery plus+Additional Options (total without tax). Then the sales tax is added to that "total without tax" and only after that you start subtracting all the incentives and rebates - that's why your final payment is a little bit optimistic.
I might be missing something, but I think that I am correctly calculating sales tax -- at least for how it would be applied in Arizona. It may be different in California or elsewhere.

Simply put, I'm calculating sales tax on this amount:

  • agreed upon sale price of new vehicle (this is the agreed upon value of the vehicle as it currently stands)
  • plus dealer add-ons such as window tinting
  • minus factory cash incentives/rebates

To determine this approach, I looked at the sale contract for the 2013 purchase of my Ford Fiesta.

It shows "Cash Sale Price of Described Motor Vehicle" as 19,690.

Then it shows rebates of $1,000. (It was whatever Ford cash incentive was available to me at the time I made that cash purchase.)

Then it shows lines for additional "equipment and accessories," but I had none of those in this case.

From there, the new "Cash Price" is $18,690.

Just below this, sales tax of $1,044.97 is applied, and adds up to a Total Cash Price of $19,734.97.

Now if you divide 1044.97 by 18690.00, you get an odd/unexpected number. This is because I had a trade-in vehicle, and in Arizona, when a consumer trades a vehicle with an auto sales business, sales tax is calculated against the difference in value between the bought and sold vehicles. (If the seller is not an auto sales business, then you don't get this tax benefit.)

So we subtract out the trade in vehicle value (in my case $6,100 was the "agreed trade in allowance for used vehicle"), then divide 1044.97 into (18690-6100) and we get 8.30%. That was the sales tax rate for Phoenix, AZ at the time of that purchase.

I used these same principles when I was building my spreadsheet, with the assumption that the way Arizona sales contracts are written today is probably the same as how they were written 8 years ago. It might be different in California? I honestly don't know.

OTHER fees, such as registration, title, waste tire fee, and dealer "doc fee" are added costs shown further down the sale contract page. In Arizona, no additional sales tax is due for those fees because they are for taxes and services and not tangible goods.
 

DBC

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It shows "Cash Sale Price of Described Motor Vehicle" as 19,690.

Then it shows rebates of $1,000. (It was whatever Ford cash incentive was available to me at the time I made that cash purchase.)

Then it shows lines for additional "equipment and accessories," but I had none of those in this case.

From there, the new "Cash Price" is $18,690.

...

OTHER fees, such as registration, title, waste tire fee, and dealer "doc fee" are added costs shown further down the sale contract page. In Arizona, no additional sales tax is due for those fees because they are for taxes and services and not tangible goods.
I'm not following the calculations, just noting that "an incentive" might or might not reduce the cash price. The Options incentive is related to financing so it wouldn't technically lower the sales price. Other things, like X-plan pricing, would.

FYI in California the trade-in doesn't reduce the "cash price" of the new vehicle. Most states have the rule you have in AZ.

I think there is an error in your calculations - the tax rate is applied to the MSRP+Destination and Delivery plus+Additional Options (total without tax). Then the sales tax is added to that "total without tax" and only after that you start subtracting all the incentives and rebates - that's why your final payment is a little bit optimistic.
It's sales price not MSRP, so you would use any discounts, such as X-plan pricing, when calculating the sales price.
 

supertramp

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I'm not following the calculations, just noting that "an incentive" might or might not reduce the cash price. The Options incentive is related to financing so it wouldn't technically lower the sales price. Other things, like X-plan pricing, would.

FYI in California the trade-in doesn't reduce the "cash price" of the new vehicle. Most states have the rule you have in AZ.

It's sales price not MSRP, so you would use any discounts, such as X-plan pricing, when calculating the sales price.
I do not think it has anything to do with California - my dealer quoted me with MSRP+Options+Delivery, calculated tax on that MAX amount and only after that started to deduct rebates and incentives. The thing is - they do not gain anything from taxing me more - I do not understand why they do that?
 

Nav

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But be sure to check all the contract figures match what you agreed to.

Here are some key items while reviewing the payment schedule in the Truth-In-Lending section. You should see 35 and 1 or 47 and 1 and the final payment should be large. Next review the Balloon Contract Provisions. Make sure the box is checked and the mileage is accurate.

Example:
1612350193769.png
Thank you thank you thank you @hybrid2bev - this post of yours right here saved me, and was most helpful. Appreciate you, I owe you a drink of whatever beverage you may so choose. Haha. Be back later with pics. Ty again. 👍
 

hybrid2bev

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Thank you thank you thank you @hybrid2bev - this post of yours right here saved me, and was most helpful. Appreciate you, I owe you a drink of whatever beverage you may so choose. Haha. Be back later with pics. Ty again. 👍
Glad to help!!

Be sure to share your story so others can benefit from what you learned.
 

Mopey

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Now that it is March, is the Ford .9% finance for 48 months still available? (My car has finally reached Alaska)
 

Mopey

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Programs don't reset until April. Good through March 31st.
Outstanding. Thanks for the quick reply. Hopefully my dealer will find the offer in the system.
 

Chiefsfan

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Financing the Options plan through has 2500 or 1000 rebate . Straight financing offer you got does not. Compare on fords website... try to build your car and see the finance calculator and it will tell you incentives available. General consensus is if you get 2500 options incentive then options are better than straight financing
Where in the country is the Options incentive $2500
 

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