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Ford Options - Good or bad idea?


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#1 william_b

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Posted 11 February 2009 - 12:24 PM

Hi,
I'm thinking of getting a new Ford Fiesta Zetec or perhaps Zetec S depending on how much freelance work I can get lined up over the next few months.

It's the first time I've will have ever bought or owned a car (Never needed one untill now!) so I'm trying to really get my information sorted so I don't get ripped off.

I've heard about this Options scheme but I have been told that if you're not careful you can end up getting screwed over a little bit.

Has anyone else used it? What sort of figures did you end up getting? I've been told that each car has a good point to aim for and it depends a lot on how much deposit you can afford up front.

Anyone with advice or experience who could spare a few words would be greatly appreciated.

Cheers :)

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#2 Mark M.K

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Posted 11 February 2009 - 12:36 PM

It works in the same way as normal fiance apart from a few key points.

Your repayments will be lower - but there will be a large payment at the end of either 2 or 3 years (depends on the term)

You don't own the car untill you pay off the large payment - otherwise you can part ex the car.

At the end of 3 years (just an example) you have the following choices:

  • Pay off the large payment
  • Part ex the car and get a new car
  • Hand the car back and walk away
You wont have to worry about how much you car is worth at the end because the finance company will give you a GFMV which will be around 4000 (depending on the spec). This is also the final payment

As for how much it costs - i gave them 1500 deposit and ended up financing just over 8,000 for 160 a month over 3 years @ 7.9% APR. And have the choice of a band new car at the end of it.

#3 william_b

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Posted 11 February 2009 - 12:59 PM

Thanks for the reply. I didn't realise that the GFMV was worked out at the end of the period. From what I've read it looked like they decided it when you start making payments.

#4 Mark M.K

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Posted 11 February 2009 - 01:04 PM

Thanks for the reply. I didn't realise that the GFMV was worked out at the end of the period. From what I've read it looked like they decided it when you start making payments.


The dealer will agree the GFMV at the point of sale. You will know what it is before you buy the car. The GFMV is only payable at the end of the term, but is agreed at the start.....if that makes sence :P

#5 william_b

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Posted 11 February 2009 - 01:38 PM

But what happens if they decide the car is worth 5000 at the end, but by that time it should only be 4000. Can I not do anything about that?

#6 Nipz

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Posted 11 February 2009 - 01:42 PM

They give you a guaranteed min value for the car when you start the plan and if the car is worth more at the end that thats money in your pocket.

#7 william_b

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Posted 11 February 2009 - 01:56 PM

They give you a guaranteed min value for the car when you start the plan and if the car is worth more at the end that thats money in your pocket.


And if it's worth less you walk away... I think it's finally clicked!

Cheers for all the help :)

#8 Nipz

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Posted 11 February 2009 - 02:15 PM

At the end of my two years i will be just giving the car back and getting a brand new one :)

Yea you can walk away laughing lol

#9 Truly55

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Posted 13 February 2009 - 05:56 PM

You wouldn't be surprised at the end of the period how many cars valuations are the same as the GFMV. I think I made 10p once. :rolleyes:

#10 KeithC

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Posted 14 February 2009 - 05:18 PM

It works in the same way as normal fiance apart from a few key points.

Your repayments will be lower - but there will be a large payment at the end of either 2 or 3 years (depends on the term)

You don't own the car untill you pay off the large payment - otherwise you can part ex the car.

At the end of 3 years (just an example) you have the following choices:

  • Pay off the large payment
  • Part ex the car and get a new car
  • Hand the car back and walk away
You wont have to worry about how much you car is worth at the end because the finance company will give you a GFMV which will be around 4000 (depending on the spec). This is also the final payment



As for how much it costs - i gave them 1500 deposit and ended up financing just over 8,000 for 160 a month over 3 years @ 7.9% APR. And have the choice of a band new car at the end of it.


Something wrong with the sums there.

You are looking at around 250 per month to borrow 8000 over 3 years. I wish someone would lend me 8000 and I only had to give them 5760 (160 x 36) back.

I get the impression you gave 1500 deposit, around 5000 (finance) over 3 years and you will owe 4000 (GMVH) to retain the car or give it them back.

#11 Mark M.K

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Posted 14 February 2009 - 09:23 PM

Thats how they work. You pay off the bit in the middle. Hence why its lower repayments :) I get a 10k car for 160 a month when really it should be more on normal finance.

All im doing in "hiring the car" from ford with the choice of buying it at the end. Very good way to get a new car every 3 years i just never own the car which is the only downside.

#12 Nipz

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Posted 14 February 2009 - 09:26 PM

Thats how they work. You pay off the bit in the middle. Hence why its lower repayments :) I get a 10k car for 160 a month when really it should be more on normal finance.

All im doing in "hiring the car" from ford with the choice of buying it at the end. Very good way to get a new car every 3 years i just never own the car which is the only downside.


I love the idea of not owning the car :) i went with the 2 year deal paying 188 with 1000 upfront. Just want the car now :(

#13 KeithC

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Posted 14 February 2009 - 11:50 PM

Thats how they work. You pay off the bit in the middle. Hence why its lower repayments :) I get a 10k car for 160 a month when really it should be more on normal finance.

All im doing in "hiring the car" from ford with the choice of buying it at the end. Very good way to get a new car every 3 years i just never own the car which is the only downside.


I know how it works, it's just that you said you financed 8000 over 3 years, that was the point I was picking up on.


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