Financing Options?

[Garrett]

Sorry for starting a new thread in this, but I couldn't find where we discussed this before.

- where are people financing to get out of the horrible Ford Credit rates?

- how long are you all waiting to refinance? I heard a rumour you want to wait 2-3 months so your dealership doesn't get a clawback on the rates.

 

[Flexpedition]

Your local credit union would normally be your best bet. 2.9% locally.

The clawback I have no sympathy for. Your dealers F&I guy sends Ford Credit your file. Ford Credit says Garrett is a great guy, we'll give him 4% APR. Your dealerships F&I guy looks you dead in the eye and says "I've got good news Garrett: Ford has approved your loan at a fantastic rate of 7.5%, need you to sign here". That 3.5% he padded goes into his books. When you refi quickly thereafter, the dealer doesn't get their cut. Cry me a river, right?

If and when you balk at Fords rate he'll tell you that Capital One, Ally, Chase, etc. all wanted 8%, making Ford more attractive. Or vice versa. Chase may have offered 4%, which he pads up to 6.5%, beating Ford, but you lose the FMCC bonus cash.

Negotiations should not stop at the vehicle purchase price. They continue, or should continue, for financing and extended warranties. Back office dealership profit is in addition to showroom, service, parts, etc.

 

[jeff kushner]

Good post Flex but I would add, KNOW WHERE YOUR MONEY IS COMING FROM AND AT WHAT RATE before you walk into ANY showroom!

FWIW- Ford offered 1.9% & 2.7% when I bought my '17. I opted for the 2.7 since I could get them to reduce my cost by 3,700 or so. The delta on the loan amount was only 1200 so in effect, I gained 2500 dollars.

You may do even better today......

jeff

 

[Artie]

Lincoln had .9% in January.

 

[07xln]

I got offerd 0% and 2.99% from Ford credit. Like Jeff I went with the higher rate because they took more off the top.