Ford Options Early Settlement

jrwallace

Hello,

I am buying a new Ford on the scappage scheme. I don't need finance on the car but the dealer has suggested that I take out Ford Options at 4.9% APR two years as there is a deposit contribution then pay off the finance once at least one payment has been made. As explained to me, I thereby am saving the deposit contribution from the price of the car.

Is there a catch with this plan? Can I pay off the whole balance after a month or two or is there going to be some early redemption charge. If I settle early do I only pay interest on the period the finance has run or is it the whole contract period. I pressed the dealer but they assured me there wasn't a catch, but I am conscious they are probably on incentives to get people to take out the finance!

Sorry if this is silly questrion, but I've no experience at all of such plans.

Thanks

Jon

WTTM

Phone Ford and ask them or ask for a copy of T&C's.

Simples really. Or ask a bunch of strangers that might give the answer you are looking for with no guarantee of it being right.


MOMENT:D

LandyAndy

jrwallace wrote: »

I am conscious they are probably on incentives to get people to take out the finance!

I seems unlikely that they would have to wait three years for their commission so they are probably paid after the first payment is received.

However, WTTM's advice is the best.

ukjoel

LOL - First answer is correct - read T&Cs but this is an old salesmans trick.

Ford Credit will pay the dealer commission for the finance and the salesman will get a payment as a result of this. It will also count towards his target and push his % up etc.

If you pay early Ford Credit will then pull the money its paid back from the dealer but the salesman will not have any money clawed back from his bonus as its seen as being out of his control.

Effectively the salesman is shafting his employer you are not being lied to on that front.

What you do need to check out though is the issue of ownership.
Options is a lease purchase scheme so deposit plus 36 x monthly payments PLUS optional final payment.

If you plan on holding the car for 10 years this may not be the right way to buy. As you mention scrappage you have a 10 year old car so this may be the case.

OPTIONS is a decent scheme if you want to change every 2-3 years. Its also a good scheme for salesman as they can sell you a car every 2-3 years. Bear this in mind when a salesman is pushing it.