How It Works: Ford Options Plan

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Senior Pricing Analyst

As CarsDirect’s resident pricing expert, Alex offers must-know analyses of pricing & incentives to those looking to buy or lease a car. His consumer-oriented coverage of the latest trends and breaking news has been featured by The Wall Street Journal, Fox Business, Motor Trend, Automobile Magazine, and more.

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, Senior Pricing Analyst - January 20, 2022

Ford has made a lease-like financing option more mainstream on its new generation of EVs. It's called Ford Options Plan and involves balloon financing with benefits worth knowing about if you're deciding whether to buy or lease.

First, Ford Options Plan refers to a type of balloon financing and is unrelated to a special discount offered to suppliers and employees called Ford Plan Pricing. Options Plan is only available when financing a car through Ford Credit.

How does Ford Options Plan work? Unlike a traditional purchase, Ford Options Plan offers three different choices once the standard 36-month payment term is up:

  • Return the vehicle to Ford Credit
  • Pay-off or refinance your vehicle with Ford Credit
  • Trade-in or sell the vehicle and use any equity toward the down payment on a new car

Ford Options Plan advantages. The biggest advantage for most buyers may be a low payment with flexibility. While a lease would normally offer these benefits, Ford Credit doesn't pass along a federal tax credit on Mach-E leases.

Ford Options Plan can be a good deal for other reasons, too. Going this route can offer promotional rates you can't get when leasing. Ford Credit also offers up to $2,500 in Ford Options Retail Bonus Cash to help lower your costs.

Ford Options Plan disadvantages. If you expect to drive a lot, you may not like the fact that Ford Options Plan has a standard mileage allowance of 10,500 miles per year. Buying may be better in that case, but it's also more expensive.

There's also the final balloon payment if you keep your car. This is the biggest trade-off of the low monthly cost. Ford's estimated final balloon payment on a Mach-E GT is over $29,000 assuming 10% down and a rate of 1.4% APR.

What models offer Ford Options Plan? At present, only the Mustang Mach-E offers Ford Options Plan. However, a recent dealer incentive bulletin confirmed that the F-150 Lightning will soon offer the same option.

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, Senior Pricing Analyst

As CarsDirect’s resident pricing expert, Alex offers must-know analyses of pricing & incentives to those looking to buy or lease a car. His consumer-oriented coverage of the latest trends and breaking news has been featured by The Wall Street Journal, Fox Business, Motor Trend, Automobile Magazine, and more.

Follow On: Twitter

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