Purchased a 2023 Mustang Mach-E Premium last year with a MSRP for $55,434.94. The price was significantly less since I received both a $8,500.00 rebate and the Federal Tax Credit of $7,500. I put zero dollars down and got a interested rate of 2.49% through Ford options.
Ford options is a balloon payment option - I signed a 4 year plan @ 10,500 miles per year. I owe 21,384.50 after the 4 years. My monthly payments are $712.86
Since I got the car I had numerous software glitches and problems. Ford agreed to buyback the car under the California lemon law.
I have a few options:
Buyback
They give me back everything I spent and it’s like the deal never happened.
Cash and Keep
They pay me off a certain amount (they are still calculating it) and I live with the car.
Substitution of Collateral
This is where it gets interesting to me - they are allowing me to swap my vehicle out. I need to clarify this - but I believe that it will be MSRP to MSRP. The MachEs have dropped in MSRP so I could technically upgrade for free. I have 6 months to finish this option so I have the potential of getting a 2024 MachE.
The language that the Ford buyback adjuster gave me is
Option Three: Substitution of Collateral
This option is only available if your lender supports this type of transaction. You will keep your current loan and everything regarding your loan will remain the same. Same payments, same due date, same everything. You will pick out a new Ford that is the same model you currently have and we would basically be swapping VIN#’s on the loan. You will be responsible for any usage, upgrade charges, and other out-of-pocket amounts. These amounts will be paid at the time of surrender in certified funds. There is no payoff associated with a substitution. You do not qualify for rebates or discounts.
The line “You will pick out a new Ford that is the same model you currently have and we would basically be swapping VIN#’s on the loan” is confusing to me.
They are saying it needs to be another MachE (same model) and you will get to keep your financing and position in your financing (same payments, same due data, same everything).
I suspect… you can pick a different trim, up to the equal MSRP without applying any rebates or discounts. I do not have first-hand experience to share, others may.
But you are right - I will try to get this clarified in writing before I make a decision. Obviously if they are trying to do same model and trim then I’ll just take my money back and go somewhere else.
This is how an SoC is usually handled, what Chevrolet did for Bolts was unusual. Same model, MSRP less-than-or-equal, trim and options don’t have to match. They amend your lease agreement to swap the VIN, and sometimes adjust the expected mileage at return (if you had 36m/36k and you are 12m/12k in, you don’t always/automatically get 36k on the new car).
If that’s the route you want, and you aren’t finding the car you are looking for — in a buildable configuration that stays at the contracted msrp — ask them to locate one.
That’s arguably the worst option. There was another poster who really regretted it because the problem came back and essentially they refused to work on it.
Good question. The MachE is a well made car mechanically but has terrible software. The issue is that it’s mostly a software driven car. I rented a model 3 for several months as they were fixing the MachE so I compared them side to side - the build quality on the MachE is much better.
The MachE checks a lot of boxes for me and it is a good town car.
I am in a tax bracket where I don’t quality for the Fed or State incentives so I’d most likely look into a EQS or the Ionic 5. I really like the Sony/Honda Afeela car but that is a few years out.
The issue about reversing the deal is the interest rate. You can no longer get 2.49% anywhere. My savings account gives me 4% right now. T Bills it’s 5.6%. Because of that I calculate my car payment to be less than 714 a month.
My plan is to wait till the 2024 MachE order guide - I am better than Ford will slash the MSRP pricing again because the cars are selling horribly. That will allow me a “free” upgrade to a GT trim.
Yes I annoyed the both Ford corporate and the dealership to fix problems with the car. If you are in California you simply need 5 repair attempts and/or 30 days total in the shop.
