Problem with pre-paying Ford Options lease.

[RedStallion]

Hello!
I just got my first bill and had planned to pay off the whole thing in full. I called Ford to ask them how much the total of payments would be minus the interest since I was paying it off right away.
I was told that I need to pay the whole amount - that even though I was paying off the 35 payment "loan" right away the interest would still be charged.
I spoke to a few supervisors who said that they could not change it and whether I payed it off in 3 years or right away I would still pay the same amount.
Has anyone else had this problem?
Just a heads up to anyone who is planning on doing the same thing.. it seems it's not possible.
When I bought the car they dealership told me that there would be no pre-payment penalty and I would avoid interest payments by paying in advance.
Hopefully somebody from Ford is reading these forums and can clarify this for me.

First of all, Ford Options plan is not a lease. Perhaps the person you talked to was equally confused.
You can log in to your Ford financing account and it will show you payoff amount as well as the payments left. Paying off early will definitely save on interest. Not much though, 2.25% APR is pretty low already to make any sense paying early. In fact, it's below the actual inflation rates, so Ford literally gives you free money. I wouldn't recommend prepaying unless you have difficulty investing your money with better returns.

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[NoVAguy]

seems like you are trying to say 2+2-1=4

Or more like 6÷2(1+2)=1

 

[Wk217]

Or more like 6÷2(1+2)=1

Is that the math where
6÷2(3)=6÷2x3=9
Or the
6÷2(3)=6÷6=1?

 

[BMT1071]

Is that the math where
6÷2(3)=6÷2x3=9
Or the
6÷2(3)=6÷6=1?

Always remember PEMDAS! ??

 

[buddha34]

First of all, Ford Options plan is not a lease. Perhaps the person you talked to was equally confused.
You can log in to your Ford financing account and it will show you payoff amount as well as the payments left. Paying off early will definitely save on interest. Not much though, 2.25% APR is pretty low already to make any sense paying early. In fact, it's below the actual inflation rates, so Ford literally gives you free money. I wouldn't recommend prepaying unless you have difficulty investing your money with better returns.

Agree with this completely. Who knows what the future holds for investments/stock market etc, but with inflation as it is and conservative investments, should be able to make 4-6% return year over year in the long run, so you are (theoretically) netting 2-3% off of what you would have paid them up front.

 

[rogerq23]

Yes. The 35 remaining monthly payments plus the balloon payment, minus the interest over the 36mos term, plus the interest on one month.

Oh, I don't know if you can pay just the 35 remaining payment without the balloon and avoid paying the interest. I didn't know that's what you're trying to do.

When you paid off your monthly payments plus ballon payment, do you now own the car?
Hence there is not mileage limitation?

I signed up for a Ford Option, kept my old car, but I realized its too much work to keep two cars, now if I sell one, I think I will go over my yearly mileage very quickly (18k a year)

So I am thinking to pay everything off. Again, once paid off, you do not get any mileage limitation right? Thanks!

 

[macchiaz-o]

When you paid off your monthly payments plus ballon payment, do you now own the car?
Hence there is not mileage limitation?

I signed up for a Ford Option, kept my old car, but I realized its too much work to keep two cars, now if I sell one, I think I will go over my yearly mileage very quickly (18k a year)

So I am thinking to pay everything off. Again, once paid off, you do not get any mileage limitation right? Thanks!

Correct. It is your car.

 

[67 Stang Convertible]

To OP, could be a blessing in disguise. Look @ your investment portfolio. What has it done over the last 5 years? 8%, 12% returns? Keep that cash working for you & use the profits to pay the 2.25% to Ford. Just my 2 cents.

 

[hybrid2bev]

When you paid off your monthly payments plus ballon payment, do you now own the car?
Hence there is not mileage limitation?

I signed up for a Ford Option, kept my old car, but I realized its too much work to keep two cars, now if I sell one, I think I will go over my yearly mileage very quickly (18k a year)

So I am thinking to pay everything off. Again, once paid off, you do not get any mileage limitation right? Thanks!

The mileage limit is only enforced if you return the vehicle to Ford Credit at the end of the term.

If you refinance the balloon amount or trade in the vehicle or pay it off, then there’s no excessive mileage/wear charges.

 

[MachTee]

When you paid off your monthly payments plus ballon payment, do you now own the car?
Hence there is not mileage limitation?

I signed up for a Ford Option, kept my old car, but I realized its too much work to keep two cars, now if I sell one, I think I will go over my yearly mileage very quickly (18k a year)

So I am thinking to pay everything off. Again, once paid off, you do not get any mileage limitation right? Thanks!

Yes, no more mileage limitation. It was my full intention to pay it off right away, so I just opted for 7500 miles a year. 3 weeks in I already have 1500 miles on it so yeah I gotta pay it off ? The chat rep from Ford Credit did inform me that DMV has been taking 120 days in issuing new car titles so I'm not going to receive my title for a while. Not rush to get my title. Unless a GT shows up at the dealership and tempts me to trade up

Regarding Ford Options, my dealer literally had no clue what it was, even though on their own website on MME inventory showed the $2500 rebate. When I initially asked my salesman about it, he told me it only applies to car ordered from Ford directly, after he consulted with his manager. I had already moved on to another dealership when they called me back, to which I said get me the $2500 rebate and I'll take the car. I think it was then that the GM made a call to find out about "Ford Options".

 

[machefan]

Yes, no more mileage limitation. It was my full intention to pay it off right away, so I just opted for 7500 miles a year. 3 weeks in I already have 1500 miles on it so yeah I gotta pay it off ? The chat rep from Ford Credit did inform me that DMV has been taking 120 days in issuing new car titles so I'm not going to receive my title for a while. Not rush to get my title. Unless a GT shows up at the dealership and tempts me to trade up

Regarding Ford Options, my dealer literally had no clue what it was, even though on their own website on MME inventory showed the $2500 rebate. When I initially asked my salesman about it, he told me it only applies to car ordered from Ford directly, after he consulted with his manager. I had already moved on to another dealership when they called me back, to which I said get me the $2500 rebate and I'll take the car. I think it was then that the GM made a call to find out about "Ford Options".

With that said it's also possible that the MME is worth more at the end of the term. If that becomes the case the ballon payment might be better paid off and resold afterwards.

I stayed away from options because I didn't want to think about this or deal with teaching the dealer how to process the loan. Probably not the best idea, but I get crazy around having something over my head like total mileage caps.

 

[ZuleMME]

With that said it's also possible that the MME is worth more at the end of the term. If that becomes the case the ballon payment might be better paid off and resold afterwards.

I stayed away from options because I didn't want to think about this or deal with teaching the dealer how to process the loan. Probably not the best idea, but I get crazy around having something over my head like total mileage caps.

Amen, I plan on the .9%@48mo and paying off in around a year or two since I can make more than 1% in the market right now. Options/Leases are a gamble that in the long term is about the same as buying. You win some and loose some. Some people are better at picking the winners than the loosers but Ford seems to be targeting a lower residual than I'd hope for.

 

[generaltso]

Amen, I plan on the .9%@48mo and paying off in around a year or two since I can make more than 1% in the market right now. Options/Leases are a gamble that in the long term is about the same as buying. You win some and loose some. Some people are better at picking the winners than the loosers but Ford seems to be targeting a lower residual than I'd hope for.

Keep in mind that if you live in an area with the $2500 incentive, it will be cheaper to go with Options and pay the whole thing off in a year or two than to do the same with a conventional loan. It would actually even be cheaper than paying cash since the incentive is more than the amount you would pay in interest.

 

[ZuleMME]

Keep in mind that if you live in an area with the $2500 incentive, it will be cheaper to go with Options and pay the whole thing off in a year or two than to do the same with a conventional loan. It would actually even be cheaper than paying cash since the incentive is more than the amount you would pay in interest.

True, I actually considered it but noticed it ended 6/30. Now to see if they renew it.

 

[generaltso]

True, I actually considered it but noticed it ended 6/30. Now to see if they renew it.

I think it technically ends 7/6, but that extra week probably doesn't matter. We won't know for sure until 7/7 if it's renewed.

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