[DDANM]

Hi all - new to the forum and have found it valuable so here's some candy (Lariat Lighting at Woody Anderson Ford in Huntsville Alabama is selling for $76K MSRP with no ADM Search All Inventory ask for Alex Carr, he's the man).

Back to the question, I was considering purchasing the above vehicle to skip the wait on my reservation (ultimately I decided to hold out for my preferred XLT configuration) so had the finance guy run the numbers. He said the Ford Options interest rate was 8.7% and non-negotiable. Any one else have this experience or gotten a better rate than 8.7% recently? He admittedly had done a Ford Options purchase before so I am skeptical.

 

[btreece]

Search the forum, others have already discussed. Credit Unions seem to offer the best rates.

 

[DDANM]

i did my homework and searched the forum for information but most is from over a year ago when the world of financing was much different. i fully understand i can get a better rate from a credit union (Navy FCU is at 4.54% today for example). this is the point of my question. the dealership's finance guy is telling me to get Ford Options financing its 8.7% non-negotiable which is ridiculous.

 

[JupiterLightning]

My dealer did my financing thru a credit union. Quick and easy. 5.25%

 

[btreece]

i did my homework and searched the forum for information but most is from over a year ago when the world of financing was much different. i fully understand i can get a better rate from a credit union (Navy FCU is at 4.54% today for example). this is the point of my question. the dealership's finance guy is telling me to get Ford Options financing its 8.7% non-negotiable which is ridiculous.

Sorry, I misunderstood your point.

 

[DDANM]

My dealer did my financing thru a credit union. Quick and easy. 5.25%

did you use Ford Options financing? https://www.ford.com/finance/finance-options/ford-options/ Since it is a lease-like retail arrangement I understood financing had to go thru Ford

 

[JupiterLightning]

did you use Ford Options financing? https://www.ford.com/finance/finance-options/ford-options/ Since it is a lease-like retail arrangement I understood financing had to go thru Ford

No, just regular financing.

 

[quikag]

Hi all - new to the forum and have found it valuable so here's some candy (Lariat Lighting at Woody Anderson Ford in Huntsville Alabama is selling for $76K MSRP with no ADM Search All Inventory ask for Alex Carr, he's the man).

Back to the question, I was considering purchasing the above vehicle to skip the wait on my reservation (ultimately I decided to hold out for my preferred XLT configuration) so had the finance guy run the numbers. He said the Ford Options interest rate was 8.7% and non-negotiable. Any one else have this experience or gotten a better rate than 8.7% recently? He admittedly had done a Ford Options purchase before so I am skeptical.

Don't do the Ford options deal unless you plan on turning it in at the end of the "lease."

 

[DDANM]

Don't do the Ford options deal unless you plan on turning it in at the end of the "lease."

Yeah, I really like the idea of having an option to upgrade in 3 years as BEV technology improves (and retake another tax credit). I guess I'm looking for someone who bought a Lighting Ford Options recently to understand what interest rate they got and if it negotiable.

 

[Obi66]

Sounds like you know this, but the only advantage to the Ford Options seems to be that you can take the tax credit. Everyone I have heard of has not gone that route because of the super high interest rates. I suspect they are non negotiable, but haven't' heard of anyone that has actually done it. The rates may be the reason.

 

[DDANM]

Sounds like you know this, but the only advantage to the Ford Options seems to be that you can take the tax credit. Everyone I have heard of has not gone that route because of the super high interest rates. I suspect they are non negotiable, but haven't' heard of anyone that has actually done it. The rates may be the reason.

Yeah that makes sense. Hoping there is someone out there who has financed via Ford Options recently to get a reality check. The higher interest rate actually sounds worse than it is. I found an calculator over on the Mach-e forum that compares conventional loan to Ford Options terms and you can play with the interest rate on both. It calculates I'll pay about $1k more in interest via Ford Options financing than conventional (8.7% vs 4.5%) over the 36 month term but that's with the lower monthly payments and option to turn-in at end of term via Ford Options. Finance guy at dealership busted out a calculator (seriously!) and think got it wrong saying there was $19k finance charge over the 36 month term via Ford Options. I hate to pay the creditors anything let alone $1k but that's a way different decision than >$10k difference.

 

[quikag]

Ford options guesstimate. Is the amort period 6 years?

Ford options guess:

BALLOON PAYMENT LOAN
ASSUMPTIONS
LOAN PRINCIPAL AMOUNT	$90,000.00
ANNUAL INTEREST RATE	8.70%
AMORTIZATION PERIOD (IN YEARS)	6
YEARS UNTIL BALLOON PAYMENT	3
KEY FINANCIAL DATA
MONTHLY PAYMENT	$1,608.93​
TOTAL MONTHLY PAYMENTS	$57,921.48​
TOTAL AMOUNT PAID	$108,740.02​
TOTAL INTEREST	$18,740.02​
BALLOON PAYMENT	$50,818.54​

Conventional:

BALLOON PAYMENT LOAN
ASSUMPTIONS
LOAN PRINCIPAL AMOUNT	$90,000.00
ANNUAL INTEREST RATE	4.50%
AMORTIZATION PERIOD (IN YEARS)	6
YEARS UNTIL BALLOON PAYMENT	6
KEY FINANCIAL DATA
MONTHLY PAYMENT	$1,428.66​
TOTAL MONTHLY PAYMENTS	$102,863.52​
TOTAL AMOUNT PAID	$102,863.52​
TOTAL INTEREST	$12,863.52​
BALLOON PAYMENT	$0.00​

 

[jimfigler]

i did my homework and searched the forum for information but most is from over a year ago when the world of financing was much different. i fully understand i can get a better rate from a credit union (Navy FCU is at 4.54% today for example). this is the point of my question. the dealership's finance guy is telling me to get Ford Options financing its 8.7% non-negotiable which is ridiculous.

I was looking at the options plan back last october/november. I came to realize that even if the rate was decent i’d end up paying more in the end. About the only benefit I could see was having the option to turn it in And walk away.

 

[DDANM]

Ford options guesstimate. Is the amort period 6 years?

Ford options guess:

BALLOON PAYMENT LOAN
ASSUMPTIONS
LOAN PRINCIPAL AMOUNT	​ $90,000.00
ANNUAL INTEREST RATE	8.70%
AMORTIZATION PERIOD (IN YEARS)	6
YEARS UNTIL BALLOON PAYMENT	3
KEY FINANCIAL DATA
MONTHLY PAYMENT	$1,608.93​
TOTAL MONTHLY PAYMENTS	$57,921.48​
TOTAL AMOUNT PAID	$108,740.02​
TOTAL INTEREST	$18,740.02​
BALLOON PAYMENT	$50,818.54​

Conventional:

BALLOON PAYMENT LOAN
ASSUMPTIONS
LOAN PRINCIPAL AMOUNT	​ $90,000.00
ANNUAL INTEREST RATE	4.50%
AMORTIZATION PERIOD (IN YEARS)	6
YEARS UNTIL BALLOON PAYMENT	6
KEY FINANCIAL DATA
MONTHLY PAYMENT	$1,428.66​
TOTAL MONTHLY PAYMENTS	$102,863.52​
TOTAL AMOUNT PAID	$102,863.52​
TOTAL INTEREST	$12,863.52​
BALLOON PAYMENT	$0.00​

thanks for this! i was looking at a 3 yr term to correspond with the ability to retake tax credit every 3 years. what tool did you use for this calculation? i've been trying to convey this to the finance guy but haven't found anything this good

 

[quikag]

thanks for this! i was looking at a 3 yr term to correspond with the ability to retake tax credit every 3 years. what tool did you use for this calculation? i've been trying to convey this to the finance guy but haven't found anything this good

Open Excel, search for templates using key word "balloon."

So, the two scenarios, I did, the interest expense is roughly $6k more over 3 years so that almost completely offsets the federal tax credit. Of course, you can't take a credit now on trucks/SUV's over $80k MSRP.

 

[DDANM]

I was looking at the options plan back last october/november. I came to realize that even if the rate was decent i’d end up paying more in the end. About the only benefit I could see was having the option to turn it in And walk away.

yeah its a definitely a higher finance fee but gives the option to return/upgrade which to me is worth it for an extra $1k with possibility of a better battery, design, etc in the next three years. problem is they are telling me its like $10k more which i've very skeptical of since they have not done it previously. i really like my dealer but it'll be great once this finance stuff is modernized and a guy can be accurately informed before purchase date.