Anyone doing the Ford Options plan?

[ChrisC]

I was wondering if anyone is doing the Ford Options plan for the Lightning? I asked my dealer for the breakdown of the payments for the 36 month verses the 48 month plan and the residual amounts but he said he could not get me those till he makes the sale. That should happen in 2-3 weeks and I want to to have an idea of what to expect. I have seen discussions of the calculations for a Mach-e but not the Lightning and want to figure out the best plan now that I lost the rebate and Ford raised the price of the truck.

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[jimfigler]

Surprised your dealer even knows about "Options" mine had no idea what I was talking about

 

[RickLightning]

Any dealer who says they cannot run the numbers for you ahead of time is incompetent. What they cannot get ahead of time is the exact interest rate, but they can use the one at time of order, which is one of your choices.

 

[astricklin]

One would think that residuals are fairly high, lowering your payment, but it would be interesting to see the actual current residual values.

 

[metroshot]

I was wondering if anyone is doing the Ford Options plan for the Lightning? I asked my dealer for the breakdown of the payments for the 36 month verses the 48 month plan and the residual amounts but he said he could not get me those till he makes the sale. That should happen in 2-3 weeks and I want to to have an idea of what to expect. I have seen discussions of the calculations for a Mach-e but not the Lightning and want to figure out the best plan now that I lost the rebate and Ford raised the price of the truck.

Beware in Hawaii, all the dealers are marking up over MSRP even on incoming orders.
I have a buyer for my truck who lives on Maui and he says the markup / added dealer junk is atrocious.

Also, note that the Options is not much better than traditional financing as Ford uses "standard rates" - last time I checked it was 8-10% APR.

Best to use a credit union - they have half price APRs compared to the big banks.

When my year old MME arrives, I get the price protection (4.49%, $2000 incentive, '22 pricing) so I will compare when my dealer runs the numbers...

 

[RickLightning]

Yeah, the advantage of Options back in 2021 was a nice size rebate for SOME states and a reasonable interest rate. If you got the lower rebate, then the 0 or 0.9% 3/4 year loan was better.

Options is really designed for people that cannot afford the vehicle. You get smaller payments, but in 3 or 4 years have to pay off or refinance the balloon. It disguises the fact that the vehicle may be too expensive for you. In the "old world", if you could pay for a vehicle in 5 years, it was outside your price range. Now, Options pushes people to 6 and 7 years. Sort of crazy.

 

[RickLightning]

One would think that residuals are fairly high, lowering your payment, but it would be interesting to see the actual current residual values.

No, the residuals aren't fairly high. They are usually around 40% or less. See this thread from last summer. https://www.f150lightningforum.com/...rate-residuals-on-2022-f-150-lightning.10577/

 

[metroshot]

No, the residuals aren't fairly high. They are usually around 40% or less. See this thread from last summer. https://www.f150lightningforum.com/...rate-residuals-on-2022-f-150-lightning.10577/

Correct, the residuals are low - typical of EV/PHEV leases.

My Honda PHEV had 41% RV but I still bought it out as it has been problem free.

MME Options last time I saw real numbers reported by buyers - ranged from 37%-41% depending on miles per year and how many months.

Shame that Options does not get subvented rates for the Lightning.

Mach E got subvented rates for a long time in 2021-2022.

 

[astricklin]

Yeah, the advantage of Options back in 2021 was a nice size rebate for SOME states and a reasonable interest rate. If you got the lower rebate, then the 0 or 0.9% 3/4 year loan was better.

Options is really designed for people that cannot afford the vehicle. You get smaller payments, but in 3 or 4 years have to pay off or refinance the balloon. It disguises the fact that the vehicle may be too expensive for you. In the "old world", if you could pay for a vehicle in 5 years, it was outside your price range. Now, Options pushes people to 6 and 7 years. Sort of crazy.

The 36 month option payments don't seem to be that much lower than the 72 months loan payment, or at least from what I had seen a while back when Ford has the estimate for options on the website. Looks like they aren't giving out those numbers anymore.

 

[RickLightning]

The 36 month option payments don't seem to be that much lower than the 72 months loan payment, or at least from what I had seen a while back when Ford has the estimate for options on the website. Looks like they aren't giving out those numbers anymore.

Correct.

But here's the hook - at 36 months, you can hand Ford the keys. Can't do that with a loan. SOME people view that as a positive. Not me, but some people.

 

[astricklin]

Correct, the residuals are low - typical of EV/PHEV leases.

My Honda PHEV had 41% RV but I still bought it out as it has been problem free.

MME Options last time I saw real numbers reported by buyers - ranged from 37%-41% depending on miles per year and how many months.

Shame that Options does not get subvented rates for the Lightning.

Mach E got subvented rates for a long time in 2021-2022.

What's odd to me is that KBB awarded the lightning with the "best resale award". I guess that's just a reflection of used trucks selling at new truck price cause they aren't available. And nothing actually affecting calculating residual

 

[ChrisC]

Beware in Hawaii, all the dealers are marking up over MSRP even on incoming orders.
I have a buyer for my truck who lives on Maui and he says the markup / added dealer junk is atrocious.

Also, note that the Options is not much better than traditional financing as Ford uses "standard rates" - last time I checked it was 8-10% APR.

Best to use a credit union - they have half price APRs compared to the big banks.

When my year old MME arrives, I get the price protection (4.49%, $2000 incentive, '22 pricing) so I will compare when my dealer runs the numbers...

The Hawaii ADM is ridiculous! That is why I ordered with a mainland dealer that would honor MSRP and ship to Hawaii. They were suppose to have it delivered to a nearby dealer but did not put in the location in time so it will go to them and they will ship it out here. I hope it works out and is not too much.. at least it is not the $10K or more ADM that I was quoted by the dealers near me.

I was told the interest on the Ford Options was closer to 2.5% which would be good.. I wanted to refinance with my credit union and get the new green car rates, but since I plan to put the car on Turo part time, they said that they would not finance it

I'll call my dealer tomorrow to see if he has found out anymore information on the plan and the shipping.

 

[metroshot]

....
I was told the interest on the Ford Options was closer to 2.5% which would be good.. I wanted to refinance with my credit union and get the new green car rates, but since I plan to put the car on Turo part time, they said that they would not finance it

I'll call my dealer tomorrow to see if he has found out anymore information on the plan and the shipping.

Don't know where you got that number.

2.5% hasn't been available since the 2022 Mach E.
My Mach E re-order in September is 4.49% using Options.

Lightnings have never had subvented / incentivized rates from Ford.

Options for Lightnings are standard rates (for top tier credit) - around 8-10%.

You may want to check by asking your dealer if they used your order date on Smart VINcent and calculate the monthly.

You may be shocked.

It's much more affordable using a CU for 60-84 months.

 

[sotek2345]

Correct, the residuals are low - typical of EV/PHEV leases.

My Honda PHEV had 41% RV but I still bought it out as it has been problem free.

MME Options last time I saw real numbers reported by buyers - ranged from 37%-41% depending on miles per year and how many months.

Shame that Options does not get subvented rates for the Lightning.

Mach E got subvented rates for a long time in 2021-2022.

Yeah, Options for our Mach-e made so much sense it would be stupid to go any other way (1.4% and $2,500 rebate). The residual was low (~33%, 4 years at 15k miles /yr.), but that didn't bother me so much. It still gave us an out if the technology was bad and the value tanked.

For the Lightning, options just made no sense at all. Much better deal going through a credit union for a standard auto loan.

 

[Ventorum94]

Correct.

But here's the hook - at 36 months, you can hand Ford the keys. Can't do that with a loan. SOME people view that as a positive. Not me, but some people.

Options offers protection in case residual values of 2023 Lightnings tank in 2026. Who knows? There may be much more attractive vehicles on the market then, and several more E-trucks. Options plan transfers the excess-depreciation risk to Ford (much like a lease does, but since Options is ownership, you can still claim the EV tax credit).

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