Yep. Exactly the incentive, plus the option to bail. Now if u get $2500 incentive, that c changes a bit.
Because there's a certain amount of leverage you should(n't) have and borrowing as much as you possibly can would be a bad idea but you do you. Not going to argue over it, just stating the facts.
Below are the end of term options. Hope this helps. If I didn't explain it well I can try again. LOL.
Pretty sure that $16,000 down payment will be less that 30% of my FE. Regardless, I intend to put down the maximum amount I can.@hybrid2bev said that the down payment limit might be even lower in a post earlier this month. https://www.macheforum.com/site/threads/a-z-x-plan-discount-pricing-for-mach-e.501/post-80866
Ford Finance page show the down payment limit at 30%.
This is the most perplexing part of car buying. How is it determined what incentives should be by region? I'm sure there are government things and sales figures things. But if I just think about the word by itself it suggests that money is there to incentivize a sale. Like EV's don't sell that well here in TX so why aren't they incentivized more here (we only get the $1000 currently)? Like I said there's probably a good reason but I've just never heard a great explanation.
Sorry I think I was just talking gibberish in my last post.Below are the end of term options. Hope this helps. If I didn't explain it well I can try again. LOL.
If you return the vehicle an amount equal to the originally scheduled final balloon payment will be applied toward the satisfaction of any remaining obligations. (If that amount applied does not cover what you owe on the contract then you will pay the difference. This should only happen if you pay the loan late or less than your scheduled payments.)
Example scenarios:
1. After you've paid 35 monthly payments you owe $24k, the FMV (trade value) is $20K and your balloon note is $24k. You decide to turn it in then the amount of $24k balloon note will be applied towards the amount you owe ($24k) and you owe the disposal fee + mileage/wear charges. Walk away without any negative equity.
2. After you've paid 35 monthly payments, the Trade in value is $28K and your balloon note is $24k. You decide to trade it in then the amount of $24k balloon note will be paid off in the trade and you keep the $4k remaining or apply it as a down payment on your next vehicle. There is no disposal fee or mileage/wear charges.
Speculation:
**I don't know this for sure but I'm assuming if you have paid more during your contract term and you owe less than your balloon note at the end of your term and you return the vehicle to Ford Credit. We'll apply the balloon note amount as a credit towards your account and you may receive a refund of the over payment that is left over. But don't quote me on that.**
But if the vehicle is worth more than you owe, either because of a higher FMV or the fact that you've paid more than your scheduled payments: then it's probably better to trade it in or refi the balloon and sell it on your own for a profit. But that's up to you.
You may get a better return by investing in stocks, but stock market has been known to to lose 30% or more in a very short time and then taking years to climb back out. Safer instruments are currently paying zilch.
Fair enough. Originally you said you ran the numbers with a very large down payment. I didn’t want you to be surprised when you went into your dealer.
**Evil laughter**
Yes. I plan to be prepared when the car actually gets here.
Lol but why would you throw in $50-60k in short term to lose 30% (highly unlikely this will happen again in the next 10 years), statistically speaking, the chance that you make less than 2% on the market per year on average over 5 years is VERY low. But like I said, do as you please, I'm done with this conversation. Just take a finance class one time and those of you in disagreement will learn something.
Yes how silly to invest short term to lose 30%. What could you be thinking? Take a class and learn something. The next decade is going to be smooth sailing. No one ever got bit by a small chance.
Remember that you're not paying interest on the entire purchase price. You're paying interest on the declining balance. Just approximating, the question would be whether $1000 or $2500 is greater than (.025 - .009) X ($24,000 + $12,000) X 3.
This was my point -- a valid reason for choosing Options or Financing would be whether you were certain a BEV was for you and that BEV was the MME.
How would the amount of the disposal fee compare to a price cut of $11K on the MSRP of the MME? I can't remember the numbers off the top of my head, but Tesla cut the price of the Model S during the last year by something like $15K, and that was after the tax credits were gone. IOW does $475 matter if the choice is between buying out a three year old MME for $24K or buying a new one for $35K?
Actually you're just taking advantage of the rules to get another $1000 or $2500 off the purchase price. I don't see this as morally offensive. Ford dusted off Options because of the tax credit. If you can take advantage of the rules to save yourself a few thousand dollars do it. But as noted this is using Options as an alternative to purchasing without financing not purchasing with financing. Realistically not many people will do that.
Correct answer....
