I purchased an 06 this week and financed part of the purchase price through ford motor credit for 36 months. I got an additional $1000 off due to financing through ford.

I plan on selling my 02 and paying off the balance or re-finance. Local rate is about 1.5% less than ford. (Not a big difference) The dealer stated that I could not refinance for six months. Is this correct? What would ford credit do if I paid off the balance or refinanced before six months?

 

I bought an f250 in nov 03, using ford credit, getting the 1000 bonus,and refi'd it in under 30 days. I doubt if anything has changed.

 

Although credit laws can vary from state to state, it must be spelled out in your contract if you can or cannot pay it off early. In most cases, you can pay it off as soon as you want. Paying it off within the first 6 months does reduce the commission Ford Credit pays to some of its dealers for writing contracts. Hmmmmm- could THIS be why they told you not to pay it off before 6 months had passed? Naaah........

 

I just bought a Crown Vic and used Ford Credit for the $1000 rebate too. But 6 days later I had a check in the mail to Ford Credit to pay off their note. I did it over the phone with FC, as I was ahead of all their paperwork. They gave me the amount to write the check to pay up the interest till the end of the month, and said they would rebate me the difference in interest from when they process the check vs the end of the month interest payment I made. We'll see on that, as they figure that interest daily! The FC address by the way is in Las Vegas, Nevada~~.

 

I have never heard of not being able to pay off a loan early. But some types of loans do charge a early payoff penalty. Look at paperwork. Call ford credit.

 

I've never had a loan through Ford Credit that charged a penalty for early payoff. Come to think of it, I don't think I've had any loan with an early payoff penalty. Parents mentioned something about it on a couple of Chryslers they bought in '86-87 but not sure if they had one, or just said something about it. Check your contract to be sure.

 

like everyone else the key point is to check your contract. here in our area ford does not charge you for paying off the loan early. i just had a customer last night that hadnt received his home equity line yet, but wanted to take the truck. i told him to simply do ford financing, and when he gets his check pay it off. we just had a similar question like this in another thread. take the $ and pay it off, but always contact fmc to double check!

 

I am running into a similiar issue here. My credit is strong (770 average) and Ford is telling me that the best interest rate they can do right now is 6.75%. I have already secured financing elsewhere, just in case, that is substantially below this rate. As some of you have indicated, go through Ford and then refinance the loan. My low interest loan is through Capital One, and the check has to be made out to the dealership. So, if I accept the Ford loan then won't I be writing the Capital One check out to the Ford Credit Company and not the dealership? The refinance rate offered through Capital One is higher than the 6.75% Ford is offering. Ideas?

Griz

 

Just let Capital one make the check to the dealership and then have them endored it over to ford credit.

 

Now that might just be a very viable suggestion!

Griz

 

1) Ford Credit's rates are always higher than everyone else's (how do you think they pay for those rebates?).

2) Be VERY careful with on-line financing sources. Most of them want to give you a sight draft, which is NOT a check or bank draft, and my dealership will not accept them. Sight drafts have conditions attached which make them invalid if they're not performed to that bank's satisfaction. You wind up with a truck, I wind up with a worthless piece of paper. We got burned once, and it won't happen again, so VAN BORTEL FORD DOES NOT ACCEPT SIGHT DRAFTS.

 

Jeff, my financing is through Capital One. They provide me with an actual blank check in which to give the dealership. I have used them 2-3 times before without issue.

Griz

 

jeff, i know what you meant on those types of checks, i ran into a problem here earlier in the year! i primarily ran into that with secondary credit customers with pre-approval letters.!

 

Thanks for the replys. I though they were blowing smoke up my $%^$

 

Is this extra $1000.00 off good in all areas or just certain areas, and is it possible to get it in addition to the $2500 rebate.