Ford financing rates

[Stevie]

Around here, credit unions will get you under 2% on a new car. But if the rebate is only $1000 you will pay more then that in interest if they give get 0% without rebate. Borrowing $20,000 for 5 years at 2% costs $1033 in interest. I would take the 0% unless you are financing under $20K

When I bought my used 2013 SLK the used car dealer was going to get me 2% I talked to USAA and even though their best advertised rate was 2.25% on a used car they gave me 1.75% 800+ credit score

 

[wtd]

Originally Posted By: bdcardinal
The manufacturers will offer deep incentives if you take credit from their company. Supposedly you are agreeing to stay at their rate for a certain amount of time. But there is nothing really that Ford can do if you get their loan which includes the $7k in incentives and then the next month refinance to a real rate.


The Ford Credit rebate for this truck is 1,500 so I was a little low on my initial post. I just pulled the truck up online. The rest of the incentives are for other things.

Wayne

 

[otis24]

My friend has good, but not excellent credit. He just refinanced at 3.45% with Chrysler. Only part of the incentive is tied to finance. You are better off to get your own financing elsewhere.

 

[wtd]

Originally Posted By: Fatboymoe
Mine was 4.19 % for 1 month from Ford Credit to get the incentives. I paid it early and re-financed through my credit union for 2.29 % I bought the truck on 5-23-17.


thanks for this info. that is what I need.

Wayne

 

[wtd]

Like I have mentioned before, she is going to refinance elsewhere later. We are only initially financing through Ford to get the $1,500 rebate.

My point in starting this post was basically to find out how is it possible that as large as Ford Credit is, how can their interest rate be so much higher than smaller lending institutions for someone who has an 800+ credit score? It makes no sense to me and has me convinced that this finance guy is doing some shady stuff.

 

[L_Sludger]

7.25 on a new car? In this day and age with Fed rates where they are now?

I'd walk away on principle. Bonus points for throwing coffee in the salesman's face (disclaimer: don't do this)

 

[JHZR2]

Why doesn't she put in an application at a bank or cu? What they come back with will be most telling. Does she know her credit score?

If she can afford the vehicle, why not pay cash and be done?. Financing does not equal affording. The market is due for a correction, but it hasn't happened yet and may take a while to occur and bottom, so now is a good time to have cash and use it.

The magnitude of the finance level, plus downpayment, plus loan to income may factor in.

Just to confirm, she has to finance through the dealer to get the rebates? Not pay cash or third party check? Does the financing have a prepayment clause?

I agree something isn't exactly right..

 

[Linctex]

Originally Posted By: fields
One of my friends got stuck at 3.99% from the dealer. He refinanced at a Credit Union 20 days later at 1.75%. He had to finance with the dealer to get a $1,000 rebate.


This is pretty common, I've know a few that have done this as well.

Just have to MAKE SURE that is possible with the original financing. Watch those fees!

 

[Linctex]

Originally Posted By: wtd

My point in starting this post was basically to find out how is it possible that as large as Ford Credit is, how can their interest rate be so much higher than smaller lending institutions for someone who has an 800+ credit score? It makes no sense to me and has me convinced that this finance guy is doing some shady stuff.


Someone in the sales office is getting a HUGE commission/bonus if you accept it!

 

[Wolf359]

Originally Posted By: wtd
Originally Posted By: Fatboymoe
Mine was 4.19 % for 1 month from Ford Credit to get the incentives. I paid it early and re-financed through my credit union for 2.29 % I bought the truck on 5-23-17.


thanks for this info. that is what I need.

Wayne


Go to another local Ford dealer and see if you can buy the same car from them at a lower rate. They swap inventory all the time. You also try negotiating with the sales rep. He's lying to you about the rate, they're always negotiable. They just get a bigger kickback the larger the interest rate is. But if you're paying it off in a month, it doesn't really matter because the extra 3-4% works out to about .25% over the 1 month period and that's about $75 on a 30k loan. So push for the dealer to knock off an extra few hundred and pay it off in a month. Make sure you read all the documents and don't trust what they say about no prepayment penalty.

 

[HM12460]

Your dealerships F & I guy thinks your friend has "sucker" stamped on their forehead. Find another dealership.

 

[bradtech]

Go to your bank or a local credit union. I got 1.90% rate on 60 months. I think all that was required was decent DTI ratio & credit score of 720.

 

[DuckRyder]

Boy, there is a real reading comprehension problem around here.

 

[Uregina09]

With Pop gone, it's good to see you continue the "if you can't/don't pay cash, you can't afford it" nonsense.

Originally Posted By: Linctex
Originally Posted By: fields
One of my friends got stuck at 3.99% from the dealer. He refinanced at a Credit Union 20 days later at 1.75%. He had to finance with the dealer to get a $1,000 rebate.


This is pretty common, I've know a few that have done this as well.

Just have to MAKE SURE that is possible with the original financing. Watch those fees!

 

[SteveSRT8]

I second the credit union. With decent scores we got 1.75% on our last loan, and they paid all the fees, too!

 

[Mr Nice]

2.49% at my credit union.

The guy is is dirtbag and wants to jack up the rate unnecessarily.

 

[sopususer]

All good advice given. Go to the local credit union. If you aren't a member join one like Penfed, which can be done online. To give some perspective, even with a couple of raises in Fed rates in the last few months, their current rates are as follows:

36 months 1.49%
48 months 2.24%
60 months 2.99%
72 months 3.24%
84 months 3.84%

I'd personally be finding another dealer who didn't want to play games; it's not like F-150's are scarce and hard to find. With the '18 model year redesign coming up dealers should be willing to move the iron to make way for the new model.

 

[shurguywutt]

Do yourself a favor and get pre qualified for an auto loan at your bank that you use. I got a 7.5% loan at autonation then I found out they financed it through my own bank at 3.2% LOL Never again! Luckily I paid my loan off in a short time. Acura tried to do the same thing with my wife and offered us 5-6% we said no, please take this deposit and hold our car that we want. Came back the next day and they changed their tune down to ~3% after we wold them thats what our bank was offering.

 

[wtd]

Originally Posted By: JHZR2
Why doesn't she put in an application at a bank or cu? What they come back with will be most telling. Does she know her credit score?

If she can afford the vehicle, why not pay cash and be done?. Financing does not equal affording. The market is due for a correction, but it hasn't happened yet and may take a while to occur and bottom, so now is a good time to have cash and use it.

The magnitude of the finance level, plus downpayment, plus loan to income may factor in.

Just to confirm, she has to finance through the dealer to get the rebates? Not pay cash or third party check? Does the financing have a prepayment clause?

I agree something isn't exactly right..


Yes, she has to finance through the dealership to get the $1,500 rebate since it's tied to Ford Credit. Since some people are not reading my posts, she knows she can get better rates through other channels so she is not forced to finance through Ford. She just wants all of the rebates for this truck.

The thing for both of us is the principal of the matter and that it seems like someone is trying to screw us royally on this financing.

 

[sopususer]

Originally Posted By: wtd
Originally Posted By: JHZR2
Why doesn't she put in an application at a bank or cu? What they come back with will be most telling. Does she know her credit score?

If she can afford the vehicle, why not pay cash and be done?. Financing does not equal affording. The market is due for a correction, but it hasn't happened yet and may take a while to occur and bottom, so now is a good time to have cash and use it.

The magnitude of the finance level, plus downpayment, plus loan to income may factor in.

Just to confirm, she has to finance through the dealer to get the rebates? Not pay cash or third party check? Does the financing have a prepayment clause?

I agree something isn't exactly right..


Yes, she has to finance through the dealership to get the $1,500 rebate since it's tied to Ford Credit. Since some people are not reading my posts, she knows she can get better rates through other channels so she is not forced to finance through Ford. She just wants all of the rebates for this truck.

The thing for both of us is the principal of the matter and that it seems like someone is trying to screw us royally on this financing.


Got it; two things to consider. Another dealer can give the same rebate and might not rake you over the coals with his rate. If she does the deal at this dealer and does the 7%+ rate, refinance the loan the next day. BTW if you tell the dealer you are going to do this they probably will tell you that you cannot do it for X amount of months. Hogwash...you can do it the next day. They lose some money if you do it too quickly (3 months?) so tell them your intentions; they might "find" a better rate.