If Ford is offering better Options rates in 3 years, are you able to take advantage? Or are you locked in at 2.25% for better or worse?
You‘re not locked in. But it’s not an Options loan at that point. You can refinance however you want. It could even be with a completely different bank.
Gotcha. So you can basically look at it like the worst case scenario would be 2.25%. Sounds good to me!
Yeah, that really is a fantastic rate for what would then be a used car.
Your dealer is wrong.
Yeah that dealer has no idea what they are talking about. I just completed an options contract and it's pretty clear that it's an installment contract with a balloon payment. Should you decide to return the car at the end of the term, you don't owe anything (unless of course you are over mileage and the recycling fee etc.).
Is that statement in the paperwork for using options then refinance ballon payment at same 2.25%. Even if interest rates were to rise over the next 3-4 yrs?
Good question. It's all too common, unfortunately.
Correct. Hybrid2BEV posted an excerpt from his contract that stated that the balloon can be refinanced for up to 36 months at the same rate that's detailed in the contract. So if you qualify for 2.25% for the initial term, you can refinance the balloon at that rate, even if market rates are much higher by then.
If you configure a MME on ford.com, it should show you the incentives for your zip code, when you click on finance
I haven't gotten my car yet, nor read the contract. I'll read it before signing and recommend you do the same.
I don't know how often they change. But we do know that Options residuals changed at the beginning of this month, and I think the $100 early adopter cash for Active Drive Assist Prep Kit also got modified sometime during this month or last.
