Poll: Ford Options vs Finance

[timbop]

the $7500 part at all since that is between buyer/taxpayer and IRS, but I'm sure I'm sure something is just going straight over my head on that one!

Right; the idea is that next year when the tax refund comes in from the Fed you immediately apply it to the loan to reduce the subsequent interest and monthly payments you would have to make. It's sort of like a "deferred" down payment option that many solar panel companies offer: many solar companies compute your payments based on you putting down the tax refund you will get the following year and give you 15 to 18 months to write them the check for that amount. If you don't write them the check then your payments are recomputed

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[Motomax]

I think the concern is that they want to put the $7500 as more of a down payment. I believe @hybrid2bev has already mentioned that you can make an additional one-time payment during the loan for this very purpose, and the remaining payments (other than the balloon) are recalculated.

I am still struggling to understand the complaint with respect to paying off the loan other than the balloon payment. Is the expectation that Ford should wait 3 or 4 years to get the balance of their money without charging interest? That seems like an absurd position to take.

You’re right, that would be absurd. Some of the posts just made it seem like your interest paid over the life of the loan never changed which didn’t make sense for a loan. What actually doesn’t change is just the monthly payment rate. I guess the issue they had with the tax rebate was lowering the monthly payment rate as well as the balance.
I could care less what the monthly payment rate is, I only care about final cost.

 

[New2EV]

Just wanted to thank everyone on this forum for all the financing information.
My Mach E is due in next week and I asked my salesman to send over the paperwork for the Ford Options plan. They had no idea what I was talking about.
After sending them a few links I'd seen on this site, they called the regional rep and my salesman, the general manager and financial manager are now enrolled in a training class tomorrow to learn about it.

Add me to the list of people teaching their dealership how to sell them a car.

 

[New2EV]

For those of you that have completed Ford Options financing, did the $500 initial deposit come off the car price, or count towards the down payment as part of the maximum amount we are allowed to put down?

 

[macchiaz-o]

For those of you that have completed Ford Options financing, did the $500 initial deposit come off the car price, or count towards the down payment as part of the maximum amount we are allowed to put down?

Towards the down payment. It does not reduce the sale price.

 

[GrisGris]

Towards the down payment. It does not reduce the sale price.

Which makes perfect sense.

 

[macchiaz-o]

Which makes perfect sense.

Yeah but it isn't always obvious or clear, and sometimes the distinctions matter.

Like if they reduced the sale price, that would impact your taxes. Or if bonus cash were a discount rather than a payment, it would impact how large your down payment could be on certain financing options. And so on...

 

[GrisGris]

Yeah but it isn't always obvious or clear, and sometimes the distinctions matter.

Like if they reduced the sale price, that would impact your taxes. Or if bonus cash were a discount rather than a payment, it would impact how large your down payment could be on certain financing options. And so on...

Yes, I get it and understand why it's coming up. But a deposit is just that - a prepayment of a portion of the purchase price.

Edit: Oh, but I see... the final price itself can of course be negotiable. That concept seems like a distant memory with this particular car!

 

[phidauex]

For those of you that have completed Ford Options financing, did the $500 initial deposit come off the car price, or count towards the down payment as part of the maximum amount we are allowed to put down?

In my case (two weeks ago) it counted as part of my down payment (and therefore limited the size of my max down payment).

 

[corytx69]

I was having a tough time making sense of all the options, too. So I created a calculator. Working out the math in the calculator helped clear things up in my mind...

Maybe this will help you, too.

https://1drv.ms/x/s!ApbGIUelGmJ-s9hQWdOSPLkXVkpcrA?e=WX5FM8

You need to edit all the yellow cells (and maybe others) to represent your unique situation. But the link is set to view-only. So to get started, you'll need to save off your own copy.

CAVEATS:

• There might be mistakes. OK, there are definitely mistakes. Use at your own risk.
• I understand how X-Plan prices are calculated. I'm not 100% sure on A/Z/D plans so those might be a little off.
• I made this for me. In Arizona. Where you live, there might be some differences in how Cash Price is calculated, or taxes, or other things.
• This doesn't estimate anything for Red Carpet Leasing (RCL). It's just for cash, traditional simple interest financing, or Ford Options.
• It can help you see how a one-time Ford Options loan adjustment will impact future payments and overall interest paid. I'm not sure if my method for adjusting the loan will match up with what Ford Credit will do.
• Again, use at your own risk. I'm NOT responsible for your finances or your financial decisions.

May I have Permission to post this spreadsheet on the F150 Lightning Forum ?

 

[macchiaz-o]

May I have Permission to post this spreadsheet on the F150 Lightning Forum ?

Sure, go for it.

 

[jasdata]

So I have a GT on order, but sometimes use the configure my car again on fords website just cause. Today I just noticed that the $1000 options incentive is gone, and the interest rate is back up to 5% from 1.9%. I’m thinking I probably already know the answer to this, but I’m guessing that when I eventually go to take delivery of my GT that I’m not going to get the incentive and lower apr that was listed when I first ordered right? I’m going to be stuck with whatever the dealer offers?

 

[jasdata]

Ok weird. I just refreshed the page and the apr is now 1.9 again and the 1000 incentive is back.

 

[nathan624]

Is the X-Plan calculated on base MSRP or adjusted MSRP? Footnote 1 notes that optional equipment is extra and the Mach-E builder lists the AWD Extended Battery as an option. I've seen many calculations in this thread that seem to use the adjusted MSRP but I don't think that is correct.

X-Plan on Premium AWD ER should be $55,723 ($677 savings). I've seen other posts that list the X-Plan Pricing for the same model at $55,547 (adjusted MSRP of $55,300 *.98 + 275+1100). Which is correct?

Also in CA, is sales tax based on X-Plan price or MSRP?

 

[nathan624]

I fixed an issue that was causing calculations to only work properly in Office 365 and Office on the web. Now it works in older versions of Office, too, and maybe other XLSX compatible programs.

There are several smaller improvements and bug fixes.

Remember to start by selecting the correct trim level in cell C1. Then check and correct all of the yellow cells.

off-topic: How did you bake in the fixed fee into the Vlookup? If I replicate your vlookup, I come up $275 short and it's the exact same formula in the formula bar.

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