Question about Options financing

[StrWhtMME]

The question I have: When using "Options" can you pre-pay the loan? If so, any required minimum length of time?

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[hybrid2bev]

The question I have: When using "Options" can you pre-pay the loan? If so, any required minimum length of time?

Read your contract terms before signing.

On my contract it was listed as no prepayment penalty.

https://www.macheforum.com/site/threads/poll-ford-options-vs-finance.2883/post-98259

To answer your second question. If your contract lists no prepayment penalty then there is no minimum amount of time. But if you pay off the loan in the first 3 months the Options bonus cash amount may get charged back onto the dealer by Ford.

 

[StrWhtMME]

Read your contract terms before signing.

On my contract it was listed as no prepayment penalty.

https://www.macheforum.com/site/threads/poll-ford-options-vs-finance.2883/post-98259

Sweet!! Get the incentive, they pay off in a couple of months

 

[hybrid2bev]

Sweet!! Get the incentive, they pay off in a couple of months

See my additional reply. If you pay it off too soon the dealer could get penalized.

 

[StrWhtMME]

Thank you for that link. That's what I see, No Pre-Payment Penalty. Very appealing if you were going to pay cash

 

[StrWhtMME]

Making payments for 3-6 months, is sure worth the $2500 incentive.

 

[Mirak]

I did an Options contract with a $15,000 DP. Two weeks later I made an extra $20,000 payment toward the loan. The only trick was that I had to set up a Ford Credit account which is different than your Ford account. You have to use the website to make a payment of extra principle so that it is booked as such.

The Options contract has no pre-payment penalty. I agree the dealer might be penalized in some way if you pay the whole thing off too early (such provisions are usually 3 months or 100 days), but I don’t think that’s been 100% confirmed.

 

[StrWhtMME]

I did an Options contract with a $15,000 DP. Two weeks later I made an extra $20,000 payment toward the loan. The only trick was that I had to set up a Ford Credit account which is different than your Ford account. You have to use the website to make a payment of extra principle so that it is booked as such.

The Options contract has no pre-payment penalty. I agree the dealer might be penalized in some way if you pay the whole thing off too early (such provisions are usually 3 months or 100 days), but I don’t think that’s been 100% confirmed.

Thanks for the additional info. You're thinking like me, take the money and run! Pay off is a few months!

 

[Mirak]

Thanks for the additional info. You're thinking like me, take the money and run! Pay off is a few months!

Right. I hate debt, especially on a depreciating asset. I’m going to pay the whole thing off in under a year. From here out I’ll chuck $2k per month at it.

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