To maximize cash back rebates on their new Ford truck purchase, a few members have promoted the following strategy:

1. Negotiate best price on truck
2. Take advantage of all available cash back rebate incentives by financing loan through Ford at "retail" (i.e. crappy) rates.
3. Immediately refinance that loan at the bank or credit union of your choice, at more favorable rates.

This strategy is purported to be a "win-win" approach, one that presumably saves money up front on the sale price of vehicle (by financing through Ford for all qualifying rebates), while minimizing interest payments (by financing elsewhere later).



But what's the catch? Doesn't Ford build in some insurance with a hefty pre-payment penalty, or other "fine print" that protects their finance revenue stream? How does this actually work in practice?



I called my credit union, and they said that they cannot refi any car loan until at least one payment has been made, and of course depending on the number of miles on the truck at the time, it would likely be considered a used vehicle at that point (which equates to slightly higher rates than when financing a new car).



Are people successfully refinancing their trucks as "new" or "used?" And are you waiting for that first payment (which could be 45-60 days after driving off the lot) before doing anything?


Has anybody been bitten by Ford's fine print? You know what they say, "there's no such thing as a free lunch." But obviously a few of you are dining for free! What's the secret?

 

I purchased my truck on 5/27 this year and financed with Ford to get the rebate. My statement came on 6/10. I set up my account online the same day and paid it off.

I have heard of some people calling and getting their account numbers several days after purchasing instead of waiting for the statement.

Happy shopping!

 

I purchased my truck 5/21/2011 and paid it off on 6/13/2011. No pre-pay penalty. Ford gave me 4.9 percent financing and I refinanced at 2.9 percent for 72 months. I got $6,000 off of sticker buying it this way. According to the dealer I paid about $275 over their cost.

 

It appears Ford is now offering 2.9 on 2012 F150's for 36 months

 

I financed both my 2010 Focus and 2011 F-150 through Ford credit at 1.9% and enjoyed all applicable rebates, incentives and promos. Not many local banks are offering that kind of rate.

Just remember, when you make your purchase you should:

a) Come prepared with your own financing and,

b) Don't be afraid to negotiate for a better rate from Ford Credit. You have that right.

c) Don't purchase the extended warranty until after you have made your purchase and have time to digest the entire deal. The dealer will play on one's emotions and certainly convince you while signing papers on a $40K+ truck that ANYTHING can happen.

 

If you're going to purchase an extended warranty, just look the price up on fordwarrantys.com and take that with you. Tell the dealer to beat it - they can.

 

^^^^^^^^^ Outstanding link sir and reps sent.


This is no doubt the best way to go in my mind. The Premium care package literally covers everything but wear items, paint and normal maintenance items such as fluid exchanges and filter changes, tires, etc.

 

We also used Ford's financing (4.9%?)to get the cash back offered. Then refi'd with local credit union for 2.9%. The only thing we had to wait for was a "account number" set up by Ford. Took a few days to get into their system. Once in there,we could call for a payoff amount and refinance.

 

I think it's still better in the long run to skip the extended warranties altogether.

 

I didn't know you could negotiate your own rate. Is that only on a dealer-by-dealer basis, or are we talking about Ford Financial (corporate)? Why would they go to 1.9% and offer me all rebates, when they know I already have to give up $2,000 in rebates if I go with the promo rates of 2.9%/3.9%/4.9%?

Ford and the dealer both told me the following:

• I can have $3000 cashback if I finance with them at the crappy retail rates
• Or I can have $1000 cashback if I finance with them at one of the promo rates (2.9%/3.9%/4.9%)
• Or I can have no cashback if I paid cash or financed elsewhere (unless I have a trade-in, but I don't).

 

On 6/18 of this year I financed my 2011 Platinum through Ford Credit at 1.9% / 72 months, and will pay only a couple grand in interest on a $53k MSRP (negotiated to $41k) truck. If you have great credit and make a few bucks Ford will do just about anything. Also, I'm going to make the monthly payment for as long as I feel like, then pay it off. Dealers use your beacon score as well as something called "auto industry option scores". This is your beacon + a formula that compounds your auto payment history. If your beacon is over 720, and auto payment history is clean, you're golden.

 

I would recommend that you log on to Ford and check out the incentives and financing options. There are some unadvertised or under advertised options available so make sure you check out everything before pulling the trigger.

I've never heard or seen any financing incentive from Ford credit of more than $1000 no matter the rate. The dealer has an opportunity to make money on your financing, I have no problem with dealer profits but they negotiate your terms and so can you. You simply do it through the dealer's finance manager while he's trying to sell you a bunch of crap that you generally don't need.

 

Tim, what un- or under-advertised incentives are you talking about? All I know is to go to Ford's website, click on incentives, select the truck and zip code, and hit submit. They'll list incentives then.
Is there anything else? I just want to make sure I am not missing anything .... Thanks!

 

When I bought my truck in June, I sat down with the sales manager for a quite a spell. We went over anything and everything pertaining to rebates, incentives, etc. At the time there was a $1000 military offer on the table that Ford wasn't talking too much about that I took advantage of. I had to give up my $750 coupon to get but I came ahead regardless.

The point is, some incentives may cancel out others so the best advise is to be a savvy shopper.

 

Tim is correct - there are *lots* of incentives that aren't shown on the Ford website.
Classic example: I received $500 rebate from Ford Credit for rolling in more than $2K worth of add-ons (in my case, an ARE DCU topper and a Ranch Hand front end replacement) to the note. There are discounts for military (but not for public safety... ahem, hello Ford, 5 of the 7 pieces of apparatus in my firehouse are on Ford chassis...), AQHA, all sorts of things. Many of these are limited in application - you can have A and C, but not B... or maybe B, but not A or C... etc.

Also, if there have been any private offers made to you, the dealer can pull that up as well (even if you don't have the coupon).

Tell the dealer to pull up whatever vehicle you purchase in "Smart VINCENT" and it will show all of the offers available for the VIN purchased and your ZIP. Then walk through each offer, check the eligibility requirements, and any conditions that might apply.