Ford Motor Credit is a relationship lender and sometimes offers great incentives for purchases of their new cars. I recently acquired two new Fords and qualified for two different incentive programs.
First, I traded in my son's 2019 Ford Edge on a loaded 2022 Edge. The incentive: Zero (0) percent financing for 72 months plus a $3,000 rebate. That was pretty straightforward; I had about $5,000 worth of equity in the 2019 Edge that I applied towards the 2022 purchase. In this hot market for new cars, Zero percent financing is difficult to find but the deals are out there.
Second, I purchased a new 2022 Ford Mustang Mach-E electric vehicle. These cars are currently in huge demand due to high gas prices and various incentives for EV purchases. My dealer found me an abandoned special order for a 2022 Mach-E Premium Extended Range and sold it to me for MSRP. (Many less scrupulous Ford dealers are marking up these cars by $5K to $20K over MSRP, but thankfully my dealer doesn't do that.)
Ford is offering a special, innovative fianancing program on the Mustang Mach-E known as "Ford Options". It's essentially a balloon loan with a $2,500 rebate and a special interest rate for 3-4 years. The State of California kicked in another $750 EV instant rebate. Ordinarily, I shy away from balloon financing, but this program is different. At the end of the promotional financing period, I have several options: I can keep the car and pay the balloon amount; I can trade the car in for a new Ford; or I can simply return the car to Ford as if it was a leased vehicle.
Many people mistake this program for a lease, but it's not. That's a significant difference because the $7,500 Federal EV tax credit applies only to EV purchases, not leases. (Actually, the dealer gets the tax credit on leased cars.) Ford offered a 2.49% introductory interest rate, which is even lower on the higher-end Mustang Mach-E GT model. I accepted this offer since EV technology is evolving so rapidly, I figure I'll want to trade the Mach-E in on a new one in three or four years, probably with greater range.
FICO Auto 8 scores: EQ 746, TU 750, EX 746
