Don't do the Ford options deal unless you plan on turning it in at the end of the "lease."
Ford Options interest rate non-negotiable and extremely high?
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.
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.
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Ford options guesstimate. Is the amort period 6 years?
Ford options guess:
Conventional:
Ford options guess:
| BALLOON PAYMENT LOAN | ||
| ASSUMPTIONS | ||
| LOAN PRINCIPAL AMOUNT |
| |
| 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 |
| |
| 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 |
Open Excel, search for templates using key word "balloon."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
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.
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