Does accepting a Cash & Keep diminish the car value?

[Cobra Jet]

Do they brand the title? If not then I doubt it really diminishes the value especially if it was a factory replaced new engine. In fact, to some buyers it might even raise the value to know the engine is newer than the car itself. Hell, my 2020 had the mega cap TSB done last October at 13,000 miles, they had it down to a short block and having seen the level of some techs out there I’d have rather had a new engine. Probably would have been quicker too, since it had a front cover leak upon reassembly and they had it an extra 3 days to fix.

I guess that is the question, if I accepted the cash & keep option, will it show on the car's history as a Lemon Law Transaction? I saw a Carfax the other day that showed it was a "Lemon Law Buy Back".

No and No.

If the Owner does not go through any actual Lemon/Buy Back Transaction - meaning Ford RAV paperwork is signed AND the collateral is returned to Ford, the VIN is NOT affected or flagged as a Lemon or Buy Back.

The only way the VIN can be tagged as a Lemon is the vehicle has to be turned over to Ford.

The major warranty work will most likely show on a VIN report and definitely will be in Ford OASIS/ETIS.

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[merlin803]

I think this question would be easier to answer if we knew what your intentions were for this car before the engine was replaced. How long did you plan to keep it? Is it a weekend warrior, track weapon, or daily driver? How have these been impacted by the lemon status? How much time do you have to decide? Enough to drive it a bit and determine if it runs as it should and whether you're comfortable with it?

It is a daily driver and as long as it ran properly, I was planning on keeping it long term before all of this started in November. I have to make a decision this week, so realistically, I have probably 100 miles on it since I got it back (and babying it at that W/ the new engine).

I wish they would have just offered an exact replacement.

The engine replacement will show in Ford OASIS as well as VIN reporting services.

I've seen various VIN reports from XYZ VIN services where engine replacements, trans replacements and other major repairs are noted. In fact I was looking at a recent CarFax for a 2012 BOSS 302, it listed the engine was replaced @ 9k miles.

Does it matter on a GT? Not as much as it would for a S550 GT350, GT350R, GT500, Mach 1, 50th Anniversary LE, or Bullitt, where those vehicles have prominence by Limited Edition build quantities, Ford Certifications and "numbers matching" means more to a buyer of such niche vehicles.

I'm not saying your car isn't "worth it" so don't read into that above paragraph. All I'm saying is an engine replacement with back up documentation as to why it was replaced goes a lot further than just someone trying to sell a car that has a major repair on some VIN report.

Should you pursue any monies due to you? Yes.

Will you be able to get a diminished value payout based on a warranty engine replacement? No. Ford doesn't do "diminished value" payouts, that's what your Insurance Company does. If you feel you need "diminished value" for a warrantied engine replacement, contact your Auto Insurance Adjuster and inquire - and hope your rates don't get jacked if you accept some feel good payout.

I've been through the Ford RAV Buy Back process with my prior 2016 S550. I've helped others on this site with that process (just search these terms on here such as Ford RAV, Buy Back, MSRP Buy Back, Lemon Law, Lemon, etc). There's plenty of info to help along.

Unless something has changed, Ford isn't going to let a Consumer keep the car and offer some wild cash settlement.

They will usually offer:

1) A Ford ESP Plan of up to 75k or 100k.

Or

2) A Ford Service Plan up to 45k (or more), which covers things like free oil changes, etc.

And

Depending on the relative issue and concerns the Customer had to go through as well as total down time the car spent at the Service Center, they may offer the Consumer monetary compensation. If the vehicle is financed, that compensation will be equivalent to their car payment multiplied by X-months of down time. This decision and total payment is passed down by a Ford Regional Rep. if a Case was initially filed AND authorization by their Supervisor.

They won't offer the ESP and Service Contract deals above as a package, it will be offered as "on the table" and the Customer picks from the (2). If Ford does offer all (3) above to the Consumer, it's in extremely rare circumstances that evolved during the course of the initial concerns, how many times the vehicle had to go in for Service for a rep again length of down time that Consumer did not have their vehicle.

The Buy Back process is (2) options:

A) Refund:
Which is all monies paid refunded, collateral (vehicle) is turned over and the customer walks away from Ford. I've seen some M6G members state that even after getting a refund, that Ford has offered them $Xk off their next Ford purchase.

B) Swap of Collateral:
The Customer can pick any Brand New Ford on a local Dealer's lot and their collateral is swapped for that vehicle. The swap is MSRP value to MSRP Value. All discounts, Incentives (Ford or Dealer), A-X Plans, and any other form of discounting is not allowed - it's strictly MSRP to MSRP, doesn't matter what you initially paid for your existing vehicle at all, even if you bought below MSRP. If the new vehicle you pick is more $$ than the MSRP of your existing, you owe the delta to Ford via cash or financing it. With a swap of collateral, there are State Doc Fees that are applied. In some instances, there may be a mileage use fee. The doc fees and mileage use fees are based on your Home State's Lemon Law provisions - these are NOT "Ford" fees at all. In fact, Ford has to abide by the State's Lemon Laws and does not deviate from them. So any additional costs incurred that are "unfair", write to your State Senator or Governors.

I always recommend to anyone considering the above to read up and be aware of their Home State Lemon Laws and what rights are afforded to the Consumer as those laws vary State to State. When researching, make sure you are on your Home State's ".gov" website which will have the most current and accurate info. Do NOT use the 3rd party websites with Lemon Law info, 99% of the time they aren't accurate. Better Business Bureau has links as well, but sometimes even those are not as current as the actual ".gov" State site.

Once the Collateral is swapped or surrendered back to Ford based on (A) or (B) above, that Buy Back vehicle VIN gets flagged as a Lemon and it's flagged that way forever in Ford OASIS/ETIS, Insurance databases and any DMV/VIN Reporting database - you can wash a title, but can't wash away the VIN history.

Thanks for all of that, you have given me good information on this when I started this whole process.

I wish they would have offered the "Swap of collateral" option but they did not, the two offers are:
1. They buy the car back and give me about $4,000
2. I keep the car, waive future "Lemon Law" rights on the car and accept about $5,000

I feel like if I choose to keep it, that I am gambling on it running ok for the long term because I would not be able to afford the loss of selling/tradng it (it's already several thousand dollars "under water" value wise according to any trade in values).

On the other hand, I can't exactly find my exact color/options of car available (and if I did, I no longer have family with the Ford discount and the interest rates on loans are ridiculous).

I just have to tell them which I choose and think I am leaning on letting them buy it back.

 

[shogun32]

I wish they would have offered the "Swap of collateral" option but they did not, the two offers are:
1. They buy the car back and give me about $4,000
2. I keep the car, waive future "Lemon Law" rights on the car and accept about $5,000

wow, that's a crappy set of options. Option2 should have been 10k. I'd get rid of the car. It's *only* a Mustang and a zillion others to choose from.

I don't think the "cash & keep" option is going to cover the difference in value (about $4,000 is the offer on a $56,000 MSRP car with about 8,000 miles on it).

so you paid within spitting distance of a Mach1 for not a Mach1. Just buy a Mach1. They are thousands below invoice now. That'll beat the snot out of A/X-plan.

 

[XFactor7889]

It is a daily driver and as long as it ran properly, I was planning on keeping it long term before all of this started in November. I have to make a decision this week, so realistically, I have probably 100 miles on it since I got it back (and babying it at that W/ the new engine).

I wish they would have just offered an exact replacement.


Thanks for all of that, you have given me good information on this when I started this whole process.

I wish they would have offered the "Swap of collateral" option but they did not, the two offers are:
1. They buy the car back and give me about $4,000
2. I keep the car, waive future "Lemon Law" rights on the car and accept about $5,000

I feel like if I choose to keep it, that I am gambling on it running ok for the long term because I would not be able to afford the loss of selling/tradng it (it's already several thousand dollars "under water" value wise according to any trade in values).

On the other hand, I can't exactly find my exact color/options of car available (and if I did, I no longer have family with the Ford discount and the interest rates on loans are ridiculous).

I just have to tell them which I choose and think I am leaning on letting them buy it back.

With it being a daily driver, I can see why it feels riskier to take the cash and keep it. Certainly wouldn't want to find yourself in a similar position in a year, for example, with fewer options available to you. Alternatively, the coyote motors overall are generally reliable. The odds of a second motor failing on you are very low. So since it sounds like you were never really concerned with resell value, it may be a moot point now that you've got a fresh coyote in there.

 

[FreePenguin]

if was me, I would do above. let the car go, get 4k, buy the mach 1. imo its the best looking mustang variant ive seen hands down.

 

[merlin803]

if was me, I would do above. let the car go, get 4k, buy the mach 1. imo its the best looking mustang variant ive seen hands down.

Yeah, I think I have to do the buy back but not sure if the Mach 1 is in the budget (I am not really "gaining" the $4,000 as that is what I put down on my current car, along with a friends Ford discount, to get to a comfortable payment).

I no longer have the friend's Ford discount, the Mach 1 (has to be an auto) is likely going to be a minimum of $4,000 more than my current car was, plus the interest rate is darn near double what I have now.

Realistically, I would probably be looking at $150-$200 more car payment/month.

 

[shogun32]

(I am not really "gaining" the $4,000 as that is what I put down on my current car

huh, so nothing for "pain and suffering" over the whole ordeal... I thought the 4k was "we're sorry we made your life suck so hard for N months" consideration.

 

[merlin803]

huh, so nothing for "pain and suffering" over the whole ordeal... I thought the 4k was "we're sorry we made your life suck so hard for N months" consideration.

No, only if I were to keep the car and waive future Lemon Law claims.

 

[Balr14]

No, only if I were to keep the car and waive future Lemon Law claims.

I would be inclined to take the $5000. You have a new engine and a warranty. What's the odds of needing a Lemon Law claim?

 

[merlin803]

I would be inclined to take the $5000. You have a new engine and a warranty. What's the odds of needing a Lemon Law claim?

Yeah, I am conflicted about it. On the other hand, I probably could find a used low mileage Mach 1 with a clean history for around the same price now. Or, just save for a few months and then get a new Mach 1.

 

[1hotboss]

Why would you think a replacement engine lowers the value? In the good old days when cars were stop light to stop light racers, the engines were frequently replaced, and during those days without Carfax the you might be able to tell via a different engine block casting date or lack of vin on the block, sure this is important nowadays putting a value on a classic car, but today I don't think it would matter. You have a Ford replacement engine, installed by a Licensed Ford dealer, you have the car you want, with the options you initially desired. Drive the car and enjoy it.

And who is to say if you trade in for another vehicle that you won't have the same issue and that car needs a replacement engine or any other major component. That would be definitely bad luck but you never know. Enjoy the car.

 

[geep81]

I wish they would have just offered an exact replacement.

My situation was a little different than yours, but initially they offered me buyback of all my money back or MSRP for MSRP swap and I said "Will you just build me another Mustang like I wanted the first time?" and they said yes. Maybe it helped that I had ordered my first one that they bought back.

I did have to wait an additional 4-5 months while that new car was built.

 

[KingKona]

....the Carfax is already going to show a new engine regardless, so that in itself would be a deterrent to reselling.

You think that a Carfax, showing a new engine, would be a detriment to reselling?

I would counter with the idea that 99% of perspective buyers would consider that a serious bonus.

 

[merlin803]

You think that a Carfax, showing a new engine, would be a detriment to reselling?

I would counter with the idea that 99% of perspective buyers would consider that a serious bonus.

I think some people would think like you but a whole lot of people would also take a look at it being in the shop from November to February in the first year of ownership and just move on to another car that doesn't have that kind of record.

 

[KingKona]

I think some people would think like you but a whole lot of people would also take a look at it being in the shop from November to February in the first year of ownership and just move on to another car that doesn't have that kind of record.

I don't believe a carfax shows information like that. And 99% of people won't care. Like I said, most people will see it as a real bonus. And your resale value won't be hurt in the least bit.

Just relax. Dial back your emotions a bit. Feel less and think more.

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