Anyone recently financed through Ford?

[Coolrain]

I am getting $1,600 rebate on my truck through Ford. The dealer, however, told me that you have to make 6 payments before the truck can be paid off without early penalties. I am going to be doing the math and reading the fine print closely. I don't want a note on my truck, but I do want my $1,600.

only so they get their kickback.....

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[05RubiconLJ]

The dealer may be feeding you a line so that they get their financing kickback.

My dealer told me no pre-payment penalty, just have to finance a minimum of $10k. No credit application fee either.

In my case (for my region) it's a $1,900 financing rebate at 8.9%. I'm going to finance the $10k minimum and pay it off in the first month, so minimal interest.

I completely agree with you. They told me the best thing to do is to finance 100% of the truck and pay it off on the 6th payment. Clearly, that is not how you should do it. But, I bet it makes for a great payday for the dealer.

 

[05RubiconLJ]

I did some reading. I couldn't find anything directly from Ford, but I will keep digging. What dealers tell you is all dependant on how the dealer wants to do business. Everything, however points to Ford using simple interest loans which have no pre-payment penalty of any kind.

From what I have read, some dealers will pass on an additional rebate they receive on the truck, in hopes of recouping that money + additional funds down the line. Example: truck is $64,500 w/Ford Financing and $65,250 without (all numbers before rebates). The dealer will tell the customer they need to make 3 payments or 6 payments before payoff in order for the dealer to meet the thresholds for kickback by Ford Credit. Typically, folks who say they are going to pay off the truck early, do not. That is why they try to get you to finance it.

Typically, but not always, a dealer who tell you that you can pay off the truck on the first payment, likely have not extended to you the upfront discount from Ford. They are not as concerned about getting the kickback on the back end, as they are holding back those funds upfront.

So, no matter what the dealer tells you, the keyword in all this is 'payment'. If the dealer says you must make 3 payments and you feel compelled to do so, write three checks and put them in three envelopes and mail them on 3 consecutive days. You have made three payments. That is the threshold for the dealer, not three months.

 

[Krock7360]

You can pay it off whenever you want. Dealer makes money if you wait 90 days. If you want to help the dealer, keep the loan for 90 days. If you don't care, pay it off as soon as you want. You don't need to wait regardless of what the Dealer says.

Spot on my friend

 

[Acob720]

The advertised rates from any auto-finance company are usually negotiable if you have good credit. Always go to a dealer with financing secured from another lender. (Meet it or beat it contest)

I believe the advertised rates from Ford are part predatory but also part business (They are clearly willing to take on a sub-prime loan if it makes financial sense to them, but are also willing to give a trash finance rate to those willing to accept one for a $1,000 rebate)

Capital One Auto Finance which isn't exactly a tier-one lender offered me 2.45% for 72 months.

The variance of a 40K loan (2.45% vs 8.9) is about $8,700 bucks. For those that are fun-nancing like me, go to dealer prepared!

 

[Acob720]

Also, I always treat car buying as a series of transactions. I won't even discuss the next transaction in sequence until I am satisfied with the previous. And where applicable, always have a counter offer. I have aggravated a few dealers in my life. . I know nobody is asking, I just like my process...

Transaction #1: The trade if applicable
Transaction #2: The new vehicle sale price
Transaction #3: The loan
Transaction #4: The actual financing

 

[Steve2352]

Has anyone recently financed through ford to get the $1000 cash back? What rates are they offering for perfect credit? The website only says 8.9% which seems insane and not sure if it’s even worth applying lol

What I did was finance just 8K thru ford credit which earned me a $1600 rebate and I’m paying off the 8000 before I get my first bill from Ford credit

 

[Predator]

I financed through ford got 2.9% over 72 months paid 11k lower than sticker price

 

[Jim Bandy]

Back in Nov 2020, when I ordered and signed my purchase order my GSM (General Sales Manager) clearly stated no early payoff penalty, I must finance $10K and soon as the 1st payment is do - pay it off if I desire. It was my GSM who suggested it to me in order to get the Ford finance cash incentive.

 

[Mast2Beam]

Any issues getting the title sent to the new lender when you refinance quickly?

 

[goatlord99]

Has anyone recently financed through ford to get the $1000 cash back? What rates are they offering for perfect credit? The website only says 8.9% which seems insane and not sure if it’s even worth applying lol

Credit rating 875+

6.53 was rate.

 

[Agashi25]

Credit rating 875+

6.53 was rate.

Fucking yikes ?

 

[TruckGuy2020]

What I did was finance just 8K thru ford credit which earned me a $1600 rebate and I’m paying off the 8000 before I get my first bill from Ford credit

How do you pay it off before you get your first bill? Don’t you need some sort of account number? I’ve never financed a new car before and I took the ford credit for the rebate but would like to refinance ASAP, however I would need some account or something for the new lender to send the money to correct?

 

[Smitdog]

Credit rating 875+

6.53 was rate.

875+?

Must have used a proprietary credit score from an financial institution.

FICO and VantageScore are the industry standards, and used by the three major credit bureaus. Score range is 300 - 850. Anything over 780 is typically considered "Excellent", and will get you the best interest rate.

 

[goatlord99]

875+?

Must have used a proprietary credit score from an financial institution.

FICO and VantageScore are the industry standards, and used by the three major credit bureaus. Score range is 300 - 850. Anything over 780 is typically considered "Excellent", and will get you the best interest rate.

Good point! This was whatever metric ford credit spit back to me when I applied and I did not catch it was out if range!! Previous score was 814 last year. I should check my FICO...just for reference

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