Poll: Ford Options vs Finance

[will]

I guess I've still got a bit of a wait to get my vehicle I ordered. But, I just noticed something on the Ford Mach-E build site. I don't see 2021 as the model year anywhere on that site... could it be for those of us not in those special states getting 50% allocation that we'll end up getting converted to a 2022 model year?

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[jgillmer]

Has anyone that has received a GT seen what the finance rates are for buying it? I don’t plan on using Options but I was going to use Ford Credit to finance. What percentages are available? I thought I read they may be different than Premiums

At least through 10/6/21, the GTs. With approved credit, has a 1.4% Ford Options rate (compared to 2.25% for other MME models), along with $1k-$2.5k incentive (depending on your state).

 

[hybrid2bev]

At least through 10/6/21, the GTs. With approved credit, has a 1.4% Ford Options rate (compared to 2.25% for other MME models), along with $1k-$2.5k incentive (depending on your state).

Programs run through 10/4 not 10/6.

 

[HuntingPudel]

Programs run through 10/4 not 10/6.

Since my GT-PE won’t get here before then, I am anxiously awaiting word on rates and incentives for Q4. My dealer earlier this week told me that depending on my credit score and whatever Ford Options looks like for Q4 traditional financing might look better in the long run. Since my credit score bounces around from 800-830, I’m pretty sure my credit is passable.

 

[Davedough]

Since my GT-PE won’t get here before then, I am anxiously awaiting word on rates and incentives for Q4. My dealer earlier this week told me that depending on my credit score and whatever Ford Options looks like for Q4 traditional financing might look better in the long run. Since my credit score bounces around from 800-830, I’m pretty sure my credit is passable.

I'm in the same boat score-wise. I'm fairly certain I'll qualify for the lowest amount. I just have zero interest in the Options route since I tend to put a lot of miles on my vehicles, won't have the 40k at the end of it to pay it off and don't want to then further extend it out with financing as a result. I'd rather just finance from the beginning. Last I heard GTs were 3.9%. I hope they can do better than that this quarter.

 

[generaltso]

I'm in the same boat score-wise. I'm fairly certain I'll qualify for the lowest amount. I just have zero interest in the Options route since I tend to put a lot of miles on my vehicles, won't have the 40k at the end of it to pay it off and don't want to then further extend it out with financing as a result. I'd rather just finance from the beginning. Last I heard GTs were 3.9%. I hope they can do better than that this quarter.

Even if you're not interested in Options, you should check it out. Since they allow you to refinance the balloon for an additional 3 years at the same interest rate, you can treat it as a 6 or 7 year regular loan at 1.4%. If you can get the $2500 incentive in your state, it's a no-brainer, but even if you only get the $1000 it's pretty compelling. Mileage is irrelevant if you don't turn it in.

 

[Davedough]

Even if you're not interested in Options, you should check it out. Since they allow you to refinance the balloon for an additional 3 years at the same interest rate, you can treat it as a 6 or 7 year regular loan at 1.4%. If you can get the $2500 incentive in your state, it's a no-brainer, but even if you only get the $1000 it's pretty compelling. Mileage is irrelevant if you don't turn it in.

So, 72 months at 1.4% vs 60 months at 3.9%% with the 1,000 incentive for my state calculated in makes a difference in roughly $3300 in favor of Options (I'm putting $15k down). Hmmm, maybe I'm being too hasty if mileage isn't a concern. I just hate financing out past 5 years because you're always chasing equity until the last year of the loan

 

[HuntingPudel]

Even if you're not interested in Options, you should check it out. Since they allow you to refinance the balloon for an additional 3 years at the same interest rate, you can treat it as a 6 or 7 year regular loan at 1.4%. If you can get the $2500 incentive in your state, it's a no-brainer, but even if you only get the $1000 it's pretty compelling. Mileage is irrelevant if you don't turn it in.

Yeah, I’m hoping the rate and the incentive don’t change. Otherwise my credit unions both have a better rate than the traditional financing.

 

[generaltso]

So, 72 months at 1.4% vs 60 months at 3.9%% with the 1,000 incentive for my state calculated in makes a difference in roughly $3300 in favor of Options (I'm putting $15k down). Hmmm, maybe I'm being too hasty if mileage isn't a concern. I just hate financing out past 5 years because you're always chasing equity until the last year of the loan

You could always do Options for 3 years and then extend for another 3 years, but pay it off in 2.

 

[will]

colors are up on the ford configure thing.

 

[kindofblue]

I see that now. My mistake. But it's such a trivial question. If you'd pay Y under Options and X under Financing, then you're asking if X = Y + (X-Y) which is really just X = X.

Strikes me as a lot of meaningless mental accounting and mental accounting is invariably a bad idea. From a dollar standpoint there is very little difference between Financing and Options. The best case for Options is 36 months because reducing the term reduces the importance of the lower interest rate under Financing and increases the importance of the incentive under Options. In this best case if you get the $2500 incentive it's a wash. If you get the $1000 incentive you're out $1500, which is not a bad price to pay if you think you may not want to keep the car.

Going to 48 months makes Options less desirable and it makes the term longer than the warranty, which is a negative.

If you know you want to keep the MME and don't need financing then use Options and pay everything off after six months. This is the one scenario in which Options can save you some money.

Thanks DBC. I was wondering about this last instance. We did that with our 2017 Volt way back then.

 

[kindofblue]

Thanks DBC. I was wondering about this last instance. We did that with our 2017 Volt way back then.

Just learned that CA has $0 in options incentive.

 

[hybrid2bev]

Just learned that CA has $0 in options incentive.

Ford Options has these incentives in CA, $2,500 Ford Options Bonus Cash and 2.49% APR, see program numbers below:

From the Ford Build and Price site.

 

[oadesign]

I am considering more than one option but the survey would force me to choose one. Haven't made up my mind yet.

I’m likely going to go with the three year Ford options, since the car is really a technology product, and things can change an awful lot in three years, never mind four!

 

[kindofblue]

Ford Options has these incentives in CA, $2,500 Ford Options Bonus Cash and 2.49% APR, see program numbers below:

From the Ford Build and Price site.

Yes well the taking from dealer stock by the end of the month is the issue if the offer isn't renewed.

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