Update to financing options?

[eastern refugee]

** Be sure to read your own contract too **

Thank you for attaching that. It sounds like doing the options can essentially be a 7 year loan except if you actually do the 7 year loan through financing the payment the loan is less. The difference is based on mileage set up. What makes the option look better is yes the Refi Will be slightly more than the financing but it gives you a choice. It really comes down to what the car is worth 4 years from now. For example at the max mileage the FE is $17,000. If the car is worth $20,000 I can get $3000 as a down payment

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[generaltso]

It doesn't say the rate will be the same only the payment at 36 months.

Doesn’t it though? It says the refinance rate will be the same as the APR contained in the contract. Doesn’t that mean it will be 2.25%?

 

[NoMoShocks]

Doesn’t it though? It says the refinance rate will be the same as the APR contained in the contract. Doesn’t that mean it will be 2.25%?

Yes, it does say the rate will be lesser of same 2.25 percent or maximum allowed. So if this options applies the $7500 rebate taken by Ford to your purchase price, it definitely seems like a way to go. I wonder how they calculate the down payment. Hopefully, the residual value at the time of the balloon payment is set at a fixed valued no matter what your balloon payment will be so any extra down payment will mostly lead to lower monthly payment.

 

[generaltso]

So if this options applies the $7500 rebate taken by Ford to your purchase price

I think you’re confusing two things. The $2500 or $1000 Options rebate will be applied to your downpayment. The $7500 is a federal tax credit that you will get separately when you file your taxes (assuming you qualify).

 

[hybrid2bev]

Doesn’t it though? It says the refinance rate will be the same as the APR contained in the contract. Doesn’t that mean it will be 2.25%?

Yes. My mistake, I read that wrong. That's why I'm not in the legal dept.

 

[generaltso]

Yes. My mistake, I read that wrong. That's why I'm not in the legal dept.

So that’s actually really good. It means you can refinance the balloon for up to 36 months at a great rate of 2.25%. Options is looking better and better.

 

[DBC]

So that’s actually really good. It means you can refinance the balloon for up to 36 months at a great rate of 2.25%. Options is looking better and better.

Impossible to disagree. The APR for financing over 72 months is 3.9%.

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