Ford 0-0-0 Summer Sales Event: 0 down payment, 0% interest for 48 months, 0 payments for 90 days

[JumboJVT]

At 0% interest? Beats paying cash hands down, especially in times when you can get 4% interest in a money market fund or a savings account.

Really? I'd like to see your math on the return on $50K at 4% when knocking the principal down $1100/mo to make the payment vs. the employee pricing. Most numbers for a 302A XLT are up about $7K over the yesterdays depending on specifics. I'll bet there is no daylight between to two pricing approches.

Sponsored

 

[flixden]

Really? I'd like to see your math on the return on $50K at 4% when knocking the principal down $1100/mo to make the payment vs. the employee pricing. Most numbers for a 302A XLT are up about $7K over the yesterdays depending on specifics. I'll bet there is no daylight between to two pricing approches.

My statement there has nothing to do with the employee pricing, maybe I didn't make that clear. I just said that making payments at 0% interest beats paying cash (assuming the same amount).

Also, in my case, I had negotiated a price that was 3% below invoice (and $400 above the employee pricing) and placed an order with that in mid March, some two weeks before Ford announced the employee pricing. So basically, the employee pricing gave me a $400 discount at the cost of any other possible incentives or promo interest rates. ?

But again, that's separate from my statement that you quoted.

And since you asked: a $60k loan at 4% / 5 years costs about $6,300 in interest. At 4.5%, that interest cost is north of $7k. That's not too far off from the employee discount over MSRP. So the 0% interest deal there is somewhat comparable to the employee pricing, except that even without employee pricing, people usually negotiate far below MSRP on an F150. As I said, I was $400 above employee pricing. Compare $400 to $6,300 in interest. ?
So IMO, 0% interest beats the employee pricing.
But that still wasn't what I said above. I had responded to the other poster who had made a statement on car payments.

 

[Snakebitten]

If you are going to buy a truck anyways, then:

0% can be a windfall.
Or not.
Depends on the rest of the deal, of course. But usually it's a much better opportunity than not with rates what they are.

There's little that I have more disdain for than paying interest. I'd rather be frivolous with money than spend it on interest. I think it stems from my youth when me and the missus purchased our first home and mortgage rates were 12%. It stung and the experience left a lifetime mark. ?

 

[BarryT82]

It looks like there’s an additional $6k off of 2024 models too. I did a search on Cargurus and there’s still a lot of 2024 models for sale.

 

[JumboJVT]

My statement there has nothing to do with the employee pricing, maybe I didn't make that clear. I just said that making payments at 0% interest beats paying cash (assuming the same amount).

Also, in my case, I had negotiated a price that was 3% below invoice (and $400 above the employee pricing) and placed an order with that in mid March, some two weeks before Ford announced the employee pricing. So basically, the employee pricing gave me a $400 discount at the cost of any other possible incentives or promo interest rates. ?

But again, that's separate from my statement that you quoted.

And since you asked: a $60k loan at 4% / 5 years costs about $6,300 in interest. At 4.5%, that interest cost is north of $7k. That's not too far off from the employee discount over MSRP. So the 0% interest deal there is somewhat comparable to the employee pricing, except that even without employee pricing, people usually negotiate far below MSRP on an F150. As I said, I was $400 above employee pricing. Compare $400 to $6,300 in interest. ?
So IMO, 0% interest beats the employee pricing.
But that still wasn't what I said above. I had responded to the other poster who had made a statement on car payments.

I ordered the the same time as you (still no build date), albeit at a little higher price (1.5% below invoice) which of course is looking better all the time with the recent price increases. If I can get the 0% on the agreed price at delivery, then we're talking about something.

But what remains to be seen is what the deals will look like with and without 0%. In days of old, there was always an upfront discount offered in lieu of the low interest rate deal - a discount that pretty much tracked with what it cost Ford for offer the deal...the difference between the typical lending rate and the deal. Now it seems that Ford is leaving it up to the buyer to figure out that the free money isn't free.

 

[National Superbike]

I ordered the the same time as you (still no build date), albeit at a little higher price (1.5% below invoice) which of course is looking better all the time with the recent price increases. If I can get the 0% on the agreed price at delivery, then we're talking about something.

But what remains to be seen is what the deals will look like with and without 0%. In days of old, there was always an upfront discount offered in lieu of the low interest rate deal - a discount that pretty much tracked with what it cost Ford for offer the deal...the difference between the typical lending rate and the deal. Now it seems that Ford is leaving it up to the buyer to figure out that the free money isn't free.

Really comes down to how bad Ford needs to get rid of these vehicles. When I bought my truck last year, it was 9k off sticker, 4k cash offer, and 1.9/72. They gave me exactly what Carvana would have given me on my trade. This was on a truck that had been on their lot for 6 mo so they were motivated. Probably can't get deals like that on an ordered vehicle or current model year.
Average loan term is 71 mo now. That's average... lots of people taking out 84 and even 96 mo loans which is just insanity unless the interest rate is 0 or very low. And, the full effect of tariffs hasn't even showed up yet.

 

[Kodiak]

There's little that I have more disdain for than paying interest. I'd rather be frivolous with money than spend it on interest. I think it stems from my youth when me and the missus purchased our first home and mortgage rates were 12%. It stung and the experience left a lifetime mark. ?

HA! You must have bought a first home just before I did. While my new bride and were saving and working OT out the wazoo, the mortgage rates dropped to 10.25% for 30 years. I hated that 30 year mortgage but I wanted to get into a home.

4 years later it had dropped to 7.25% for 15 years and I refinanced. When you looked at the principle that was paid off for that first 4 years of a 30 year mortgage, it would make you sick. Seemed like $20 of principle for 4 years of payments. Total waste and in fact my blood is starting to boil now rehashing those terrible memories of young kids just starting out.

If you every find some "Interest Monster" somewhere and decide you want to go postal on them, let me know. I will join you in the rampage.

 

[powerboatr]

This is just my thoughts.....

$50k truck / 48 months = $1041.67 per month. Oh wait..90 day no payments. So then $50k / 45 months = $1111.11 per month. That is an extra $70.00 month.

Wow...IMO.....having 4 years of paying over $1100.00 a month payment sucks. And on top of utilities, mortgage and other monthly bills to boot.

Still 48 months
They just defer 1st payment up to 90 days
We have zero on explorer
Haven't done much of inventory search lately
But our area expedition, super duty and f150 still fly off lot

 

[Truckguy24]

I know a lot of people keep saying vehicles aren't selling but I've finally bought a new one this year, my dad finally just bought one this year, other neighbors have. The trend I've noticed though recently is people like myself, family and neighbors... We all are people that are probably a bit more reserved with buying new vehicles if that makes sense? Long term owners 12 to 15 to 20+ years old vehicles finally now replacing or adding new ones to the fleet. That's the trend I've noticed in my neighborhood and family anyways. Waited out the COVID craziness and now starting to replace them with newer vehicles.

Dealer inventory for trucks is still moving in my area.

 

[Calson]

A new truck costs me an immediate 10% of the purchase price with the state sales tax and DMV fees. The only way to get around that is with a lease where the amount is paid over the term of the lease on a monthly basis.

 

[National Superbike]

Dealer I bought my 23 from has a 24 XLT SCrew, 4x4, tow package, mirrors, 3.5 EB for 19,500 off sticker. 7500 of that is a Ford rebate which you lose if you take the 0,0,0 financing. Manger told me I'd be better off taking the rebate and getting financing through them which he said would be in the 5-6% range. Crazy good deal but I just don't need a new truck...

 

[Bossharp]

As a Navy veteran (100% SC since mid 70's) over the years inflation has year by year effectly decreased my buying power.. I understand lots of folks CAN afford to buy a new truck. But with all the new tech and the fact it basically can only be serviced by a dealer without a extended warranty that $75,000.00 truck is a financial time bomb waiting to happen.
I think that's why mid 80's to 2005 trucks of the big 3 are rising in cost AND value. That's going to increase. After all a fair percentage yet of folks just need a truck to tow and haul stuff..

 

[Ricksc]

I went down hoping for some deals on super duty, no luck. Put these deals on the super duty please. They will sell.

 

[JumboJVT]

Dealer I bought my 23 from has a 24 XLT SCrew, 4x4, tow package, mirrors, 3.5 EB for 19,500 off sticker. 7500 of that is a Ford rebate which you lose if you take the 0,0,0 financing. Manger told me I'd be better off taking the rebate and getting financing through them which he said would be in the 5-6% range. Crazy good deal but I just don't need a new truck...

And there you go: 0% costs $7500. 0% that costs anything isn't 0%. Taking the rebate and getting a loan elswhere makes sense for those that will borrow. But for those that have cash, there is no money to be made by taking the 0%, leaving $7500 on the table, and setting up a CD at 4-4.5% instead. The math just doesn't work.

 

[National Superbike]

And there you go: 0% costs $7500. 0% that costs anything isn't 0%. Taking the rebate and getting a loan elswhere makes sense for those that will borrow. But for those that have cash, there is no money to be made by taking the 0%, leaving $7500 on the table, and setting up a CD at 4-4.5% instead. The math just doesn't work.

Not exactly... depends on how much you are borrowing as to whether the 7500 or 0% is the better deal. If you're invested at anything over about 5%, take the 7500 and finance with a local CU at 5%. But you do have to run the numbers for your particular deal to see.
I read today that 20% of new car loans now have a monthly payment over 1000/mo and 20% of people are financing for 84 mo or longer.

Sponsored