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financing through Ford

3,080 Views | 26 Replies | Last: 6 yr ago by 12thAngryMan
Tatem
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my SO is shopping for a new truck. He was offered an extra $1500 off if he financed with Ford at 7%. The fin manager recommended we take the deal and just refinance as soon as possible.

Is this ever a good idea? I know there's a gimmick here, just not sure what it is...any help?? thanks
txag2008
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AG
Usually there's a stipulation that you have to make a minimum # of payments. I took a similar deal w/Ford and it ended up saving me money even after paying 3mo of high interest.

Just get all the details and run the #s.
Picard
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AG
Your SO needs to improve the ole credit score

Tatem
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we actually have excellent credit and can get around 2.99% and have bought many, many cars but i usually fin. through my credit union
i was just wondering if there was any benefit to doing it this way or what the gimmick is (besides the extra $1500 discount)
sts7049
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AG
check for min payment requirements or other fine print. if none, take the deal then refinance immediately because that rate is terrible
mts6175
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Picard said:

Your SO needs to improve the ole credit score




It's Ford, you could have perfect credit, a $1 mil/year income, and buying a Focus and they'd still charge you 7%......
AgLiving06
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They shopped my loan in house at TV, got me half that rate and gave me the discount when i bought.

Seems odd.
spud1910
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I think the gimmick is that it is a good deal if you take the offer and refinance at a better rate. But most people don't do it because they forget or don't want the hassle.
The Wonderer
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spud1910 said:

I think the gimmick is that it is a good deal if you take the offer and refinance at a better rate. But most people don't do it because they forget or don't want the hassle.
That's what Ford banks on.
mts6175
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The Wonderer said:

spud1910 said:

I think the gimmick is that it is a good deal if you take the offer and refinance at a better rate. But most people don't do it because they forget or don't want the hassle.
That's what Ford banks on.
Nah, they are banking on volume.
Mustang1
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Bought a Fusion last year. Finance guy offered 6.9. Told him that was completely unacceptable. Magically was able to lower to 3.9%.
The Wonderer
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mts6175 said:

The Wonderer said:

spud1910 said:

I think the gimmick is that it is a good deal if you take the offer and refinance at a better rate. But most people don't do it because they forget or don't want the hassle.
That's what Ford banks on.
Nah, they are banking on volume.
Of people not refi'ing?
sts7049
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this wasn't with ford, but one time in the finance guys office i told them their offer wasn't acceptable and was about to walk. then he reached into his drawer and said, "oh you know, i forgot all about these coupons i had for two additional points off the offered rate..."
mts6175
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The Wonderer said:

mts6175 said:

The Wonderer said:

spud1910 said:

I think the gimmick is that it is a good deal if you take the offer and refinance at a better rate. But most people don't do it because they forget or don't want the hassle.
That's what Ford banks on.
Nah, they are banking on volume.
Of people not refi'ing?


Number of vehicles sold......
The Wonderer
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mts6175 said:

The Wonderer said:

mts6175 said:

The Wonderer said:

spud1910 said:

I think the gimmick is that it is a good deal if you take the offer and refinance at a better rate. But most people don't do it because they forget or don't want the hassle.
That's what Ford banks on.
Nah, they are banking on volume.
Of people not refi'ing?


Number of vehicles sold......
That doesn't make sense. If that was the case, then you'd have to believe that they'd offer lower competitive rates from the start. They make money on the financing as well as the vehicle sold.
aggie028
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I did this recently at GMC to get an extra $2,500 off. Stipulation was I had to make payments for 5 months before I could pay it off. Interest over that time period was calculated by them to be $600.

I said ok and bought the vehicle. When I read through the fine print it said nothing about 5 months or a certain amount of interest. I paid it down to $1, let it sit there for 5 months then paid the $1.
Martin Q. Blank
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Tatem said:

we actually have excellent credit and can get around 2.99% and have bought many, many cars but i usually fin. through my credit union
i was just wondering if there was any benefit to doing it this way or what the gimmick is (besides the extra $1500 discount)
2.29% at lightstream
Dale Earnhardts Stache
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AG
0% on F150's was extended through the end of October. Take the free money. Assuming he's looking at half ton Ford's.
powerbelly
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aggie028 said:

I did this recently at GMC to get an extra $2,500 off. Stipulation was I had to make payments for 5 months before I could pay it off. Interest over that time period was calculated by them to be $600.

I said ok and bought the vehicle. When I read through the fine print it said nothing about 5 months or a certain amount of interest. I paid it down to $1, let it sit there for 5 months then paid the $1.
They tell people this so that they get paid on the loan. Most F&I guys aren't comped if the customer refis before 3 months.
Jrod05
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We refi a lot of people the next day or shortly after. There is no where in the contract you have to make certain number of payments that is the f&i saying that to get paid. Look at the paragraph under your interest squares on the long contract it says "no prepayment penalty" that is all a refinance is. I have yet to see one that hits a prepayment penalty. We have even confirmed with the actual finance companies not the dealer.
thaed137
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Last time we purchased they had some sort of stair step on incentives

7% - $3500
3% - $1500
0% - $0

We were paying in cash but ook the 7% deal and paid it off the first month. As said above they hope that it is too hard for you to re-finance as well as their financing arm gets better ratings with higher rates, paid off loans, etc..
Hanrahan
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bought an Audi for wife last year, same deal as others, took the crappy BofA in-house financing @6% to get a better deal, refinanced it within two weeks to 1.59% at a local credit union, it was super easy. Audi guy said i "had" to make three months payments... I checked there was no prepayment penalty in disclosures and said "sure, ok."
allen2286
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Exact same thing happened to us last year purchasing a pre-owned through Sewell. Initially offered around 7%, but I knew exactly what my credit score was and after I said that I would look around for a better rate they "re-ran the numbers" and magically found a rate closer to 2%.
montejr
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Refinancing your vehicle is simple and easy. You can get pre-approved before you close out your deal with Ford. It's nothing like a REFI on a house or even financing with a dealership. It's EASY.

0% interest at the dealer is often times not your best deal. Taking the incentives, financing at dealer, then refinancing immediately after usually comes out better in the end.
Al Bula
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Don't believe Ford Motor Crooks on financing. Last two vehicles have been with them and I took their incentives, LOLed internally at the "generous" percentage they offered refinanced through credit union at 1.99% the next business day.

The dealer where we bought my wife's explorer gave us 2.9 through FMC and crap on her obsolete Saturn trade in (to be expected). When we held out for 1000 more on trade in, they magically bumped up the financing and tried to rush us through payment. Immediately noticed they had switched rates on us but didn't matter since we were gonna refi immediately.

In hindsight should have held out for some extended warranty since they were playing games but the entire business model is sickening.

Tldr- most all finance departments are crooked because that is their business model. If they are breathing they are lying.
CS78
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Ive never looked in to refinancing a vehicle. What types of fees are normally involved?
Dr. Doctor
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Usually none.

I financed my wife's 2013 Fusion through Planet Ford for 6.9%. I walked into my company's CU the next day and filled out the paperwork. Waited till I got the loan documents and brought those in (2 weeks later).

I paid nothing and I got a rate of 1.99% in less than a month. Saved about $3,500 in interest (7% vs. 2%).

~egon
12thAngryMan
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Removed. Didn't see literally the same question asked two posts up. x_x
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