O/t Ford Options

[steveo]

I am looking at getting my next car on Ford Options scheme, but not sure on one thing. the quotes you get are on 12,000 miles. I will be luck if i don that over the three years. Will this cause a problem as i beleive you need to to 12,000 a year for the GFV value. Does anyone know if this is the case or will my payments be lower cuase of my very low mileage and they will get a good car back after the three years.

[Bashful]

I think I am correct in saying that 12k is the standard mileage you use and they don't go any lower. I have never done that in 3 years either. The GMV is based on the value they think the car will achieve if you cover 12k a year. If you don't cover this, it will push up the value of the car (although bear in mind that the GMV is a prediction, and if the car is actually worth less that that at the end of the contract, the best you can get is the GMV)

Hope that makes sense?

So in answer to the question, no your mileage won't cause a problem, and no your payments won't be lower.

[steveo]

i will go an speak to my ford deal lawrence of kemnay as i dont trust mr arnold clark

thanks for the info

[pikestones]

I think I am correct in saying that 12k is the standard mileage you use and they don't go any lower. I have never done that in 3 years either. The GMV is based on the value they think the car will achieve if you cover 12k a year. If you don't cover this, it will push up the value of the car (although bear in mind that the GMV is a prediction, and if the car is actually worth less that that at the end of the contract, the best you can get is the GMV)

Hope that makes sense?

So in answer to the question, no your mileage won't cause a problem, and no your payments won't be lower.

12k is the standard mileage they quote to make comparisons easier.

You can set a PCP mileage from 6000 miles per year to 30000 miles per year, obviously this is reflected in the pricing.So your payments should be lower (but not by much ....possibly 5-9 p per mile depending on the model)

The GMV is the minimum they will give you back if the car has not exceeded the target mileage and is in good condition,you may get more selling it privately or part exing as the GMV values are now set very low to reduce the risk to Ford,they lost a lot of money by over valuing the very first cars when these schemes started.

As others have mentioned recently,Ford will try to extend the contract by offering you a new car after 12-24 months,they want you as a customer for life when you sign up to these schemes.

Remember you are only renting the car ,with an option to buy.

Have you seen the new peugeot scheme which takes this a step further,if it catches on and ford copy it ,then it may interest you if owning a car by this method is your preferred choice

Dave

[AntonyJ]

I am looking at getting my next car on Ford Options scheme, but not sure on one thing. the quotes you get are on 12,000 miles. I will be luck if i don that over the three years. Will this cause a problem as i beleive you need to to 12,000 a year for the GFV value. Does anyone know if this is the case or will my payments be lower cuase of my very low mileage and they will get a good car back after the three years.

Steve,

The idea with Options is that you don't just hand the car back at the end of the loan. The MGFV is set deliberately low so at the end the dealer can use the difference between that and the car's actual trade-in value to give you a deposit for the next car. Of course there is a slight risk that the car will be worth less than the MGFV, but this is unlikely. If you return the car with less than the mileage on your agreement, then the car should have a higher trade-in value (so more deposit for your next one). If you return the car having exceeded the mileage there are penalty payments based on a certain pence/mile. Note that any damage to the car incurs penalty payments as well. If you choose to, you can keep the car at the end of the agreement by paying the MGFV as a lump sum. But the whole idea of the scheme is to keep you buying a new car every 2 or 3 years. The dealership should explain all this in detail and you need to understand the difference between this and normal contract purchase before deciding which to go with.

For info, I'm buying my current Fiesta on 2 year Options. I've no intention of replacing it at the end let alone handing it back, and I'll just pay off the MGFV. The only reason I went with the Options scheme this time was a lower APR and there was a £450 extra discount on top.