Why not Ford options?

[Psalm139]

I'm running the numbers on my Mach-e GT order and Ford options seems better no matter what.
I pay a monthly payment for 3 years and then get to trade it in or buy it if I want, all for 1.4% interest.
If I finance, the interest rate is similar (if not higher) plus, if I don't like it after 3 years, I have to do a whole trade in.
Is the only downside the mile limit?

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[Motomax]

The mileage only matters if you give up the vehicle. The option to walk away, in my opinion, shouldn’t be a big motivator because the vehicle will likely be worth more than your balloon payment. Short of a bolt like firegate lol.

For me options was a no brainer because of the bonus incentive. If the interest rate is lower that’s also a no brainer. You can always pay more per month on options if you don’t want a balloon payment.

 

[TS0926]

If understanding, you are playing the equity at the end of a lease game compared to trade in at the same time. I did this game by leasing and then shifting my Fusion energi to a purchase a few months prior to lease end. This was since KBB was so high and I wanted to have that equity for trade-in for the Mach-E. The title had to be cleared out of the leasing company prior to lease end or else I would have no equity when turning in the car.

 

[EELinneman]

I'm running the numbers on my Mach-e GT order and Ford options seems better no matter what.
I pay a monthly payment for 3 years and then get to trade it in or buy it if I want, all for 1.4% interest.
If I finance, the interest rate is similar (if not higher) plus, if I don't like it after 3 years, I have to do a whole trade in.
Is the only downside the mile limit?

I got my GT PE late November and went with the Options purchase. The discount, low rate and the ability to walk away after 3 years made this a very easy decision. The mileage is the only unknown, but with my employer closing our office due to COVID, I chose a fairly low mileage. The car is so damn fun, that I'll likely buy it out in 3 years, but who knows what will be for sale then. This BEV technology is evolving so fast, that we may have a much better set of options then.

 

[EELinneman]

If understanding, you are playing the equity at the end of a lease game compared to trade in at the same time. I did this game by leasing and then shifting my Fusion energi to a purchase a few months prior to lease end. This was since KBB was so high and I wanted to have that equity for trade-in for the Mach-E. The title had to be cleared out of the leasing company prior to lease end or else I would have no equity when turning in the car.

Options is not a lease. You have a lender with a pre-set price in 3 years for a balloon payment with some adjustment based on mileage. You get the tax credit as this is a purchase.

 

[TS0926]

Options is not a lease. You have a lender with a pre-set price in 3 years for a balloon payment with some adjustment based on mileage. You get the tax credit as this is a purchase.

Got it. I may have to look into this. Thank you for the correction. ?

 

[HuntingPudel]

I got my GT-PE around the same time as @EELinneman and also went with Options Financing. I went with 4 years, max down-payment, and lowest mileage on the contract. My average yearly mileage on my Fusion was considerably lower than the mileage on my Options contract and I’m also not planning on getting rid of the car in 4 years so I am pretty sure I’m good. ??

I am piling on unexpected mileage in taking my dog across the bay for chemo, but I think I’m still good. ??

 

[mlhunt856]

I did this game by leasing and then shifting my Fusion energi to a purchase a few months prior to lease end. This was since KBB was so high and I wanted to have that equity for trade-in for the Mach-E.

I did something similar with my leased Escape. Could see from the appraisal sites that I could get way more than the the lease buyout for it, so I just bought it outright. Sold it for about $5k more than the buyout or my dealer's best trade-in offer. (The used car market is as crazy as the new car market right now, if not more so.) Took Ford Options at 48 months//12k miles/year//$0 down. I was going to make a sizeable downpayment but as my wife and a user on 'that other Mach-E forum' pointed out, at 1.4% APR Ford is effectively financing the car at negative interest given current inflation rates, so it really doesn't make sense to pay down the amount financed. So I'm carrying a big payment but covering it with money in the bank.

I did buy gap insurance just to be sure I wouldn't be underwater if the worst happened.

 

[Nklem]

Options is great. The rate is great and if there is a rebate it's even better. If your turning in after 3-4 years, care about your mileage, if not, enjoy the great program.

 

[timbop]

I went with options also; with the $2500 cashback they were offering there were just too many advantages. I did the 4 years expecting that maybe solid state or other battery improvement might render the '21 obsolete, but I don't think that is going to happen until the late 20's.

 

[yngwenli]

I'm running the numbers on my Mach-e GT order and Ford options seems better no matter what.
I pay a monthly payment for 3 years and then get to trade it in or buy it if I want, all for 1.4% interest.
If I finance, the interest rate is similar (if not higher) plus, if I don't like it after 3 years, I have to do a whole trade in.
Is the only downside the mile limit?

I plan to do options since my area qualifies for the $2.5k incentive and my non-GT will be at 2.49% assuming my credit/whatever they check qualifies.

I'd rather just keep the cash in my pocket honestly and can buy ibonds or anything else with the $40k. I plan to put the max I can on my CC allowed for 1-2% cash back (peanuts really, maybe $10 bucks) and possibly, after 3 months, either close it out or just let it stay and use the $ for other investments/things.

 

[Triggerhappy007]

I got my GT-PE around the same time as @EELinneman and also went with Options Financing. I went with 4 years, max down-payment, and lowest mileage on the contract.

I heard that max down payment was 30%, is that true? Or is it a certain amount?

 

[hybrid2bev]

I heard that max down payment was 30%, is that true? Or is it a certain amount?

 

[SigSauer]

Anyone paying cash and buying their MME out right? Is this a good or bad idea.

 

[RickMachE]

Anyone paying cash and buying their MME out right? Is this a good or bad idea.

Do you not like money?

It's an awful idea. Take the largest rebate they offer, which is Ford Options. The next week call Ford for the loan number, and pay it off. Keep the rebate.

Anyone that pays cash instead of taking a financing rebate is not managing their money well.

Edit - oops, I failed to note that you're a Buckeye. Therefore, you should pay cash. Take all your pizza delivery tips and just pay it all at once. ?

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