Go Back   Ford Truck Enthusiasts Forums > General > Car/truck Buying Advice
Sign in using an external account
Register Forgot Password?


Welcome to Ford-Trucks Forums!
Welcome to Ford-Trucks.com.

You are currently viewing our forums as a guest, which gives you limited access to view most discussions and access our other features. By joining our community you will have access to post topics, communicate privately with other members (PM), respond to polls, upload content and access many other special features. Registration is fast, simple and absolutely free so please, join the Ford-Trucks Forums community today!





 
Reply
 
LinkBack Thread Tools Search this Thread
  #1 (permalink)  
Old 08-15-2008, 05:10 PM
borntohunt borntohunt is offline
New User
 
Join Date: Nov 2003
Posts: 13
borntohunt is starting off with a positive reputation.
72 month interest free financing

Does anyone know if later this month Ford will be implementing 72 month interest free financing on F150 trucks? Chevy and GMC are advertising 72 month interest free financing on trucks and I'm wondering if Ford will follow suit.
Reply With Quote
  #2 (permalink)  
Old 08-15-2008, 08:03 PM
BIGKEN's Avatar
BIGKEN BIGKEN is offline
So Little To Say!!!
 
Join Date: May 2007
Location: Greenfield, MA
Posts: 59,415
BIGKEN has a superb reputationBIGKEN has a superb reputationBIGKEN has a superb reputationBIGKEN has a superb reputationBIGKEN has a superb reputationBIGKEN has a superb reputationBIGKEN has a superb reputationBIGKEN has a superb reputationBIGKEN has a superb reputationBIGKEN has a superb reputationBIGKEN has a superb reputation
GM has been doing it for quite a while. Don't know if Ford plans to follow.

Remember...there is no such thing as "0% APR Financing"...in each and every case you sacrifice a rebate to get that rate. For instance...I sold a Super Duty today...the customer had their choice of $7500 in rebates OR $2000 in rebates and 0% APR. To finance at 0% would cost the customer $5500 more!!! You just pay the finance charge all at once...if you pay off the loan early...you lose that amount of money.

It may work for you...do your due diligence...check it both ways!!!
__________________
Member of the Massachusetts Chapter and Number One Winter Hater!!!


RIP...Hannah...affectionately known as Cujo...7/7/00-8/9/14.
Reply With Quote
  #3 (permalink)  
Old 08-16-2008, 09:25 AM
borntohunt borntohunt is offline
New User
 
Join Date: Nov 2003
Posts: 13
borntohunt is starting off with a positive reputation.
Good advice BigKen. Thank's! Interest rates are very low so by taking all of the cash insentives with low interest yields the best bottom line.
Reply With Quote
  #4 (permalink)  
Old 08-18-2008, 10:39 AM
JIM_C's Avatar
JIM_C JIM_C is offline
Elder User
 
Join Date: Jul 2008
Location: Tucker, GA
Posts: 555
JIM_C is gaining momentum as a positive member of FTE.JIM_C is gaining momentum as a positive member of FTE.
That's a good way to look at it, Ken. The loan for my 03 was 3.33%; it cost me ~$2,700 to finance my truck.
Can you take the rebates and still finance what's left through Ford Motor Credit, if they're competitive? You won't get the 0% deal but you could still get, say, 4.9% or less. Otherwise I think most dealers work with several lenders to get competitive rates.
And I think many don't realize that the interest rate is negotiable, if your credit is good enough.
__________________
2003 F250 CC LB 4x4, 6.0 with auto
Reply With Quote
  #5 (permalink)  
Old 08-19-2008, 02:53 PM
BIGKEN's Avatar
BIGKEN BIGKEN is offline
So Little To Say!!!
 
Join Date: May 2007
Location: Greenfield, MA
Posts: 59,415
BIGKEN has a superb reputationBIGKEN has a superb reputationBIGKEN has a superb reputationBIGKEN has a superb reputationBIGKEN has a superb reputationBIGKEN has a superb reputationBIGKEN has a superb reputationBIGKEN has a superb reputationBIGKEN has a superb reputationBIGKEN has a superb reputationBIGKEN has a superb reputation
Again...do your homework. FMCC probably not be competetive with local sources. Make sure you take into consideration all the programs that are available. For instance...if you finance with FMCC at regular rates...you may qualify for a small rebate in addition to the Customer Cash...generally $1000.

I would suggest that you probably would be better off taking all the rebates...finance with FMCC...and then pay off the loan after a short term...2-3 months...by financing with your local source. Your local source should still give you a new vehicle rate...and you still get the largest portion of the bonus rebate for financing with FMCC.

Hopefully this makes sense to you.
__________________
Member of the Massachusetts Chapter and Number One Winter Hater!!!


RIP...Hannah...affectionately known as Cujo...7/7/00-8/9/14.
Reply With Quote
  #6 (permalink)  
Old 09-09-2008, 02:29 PM
TorontoRaptor416 TorontoRaptor416 is offline
Junior User
 
Join Date: Oct 2007
Location: California
Posts: 54
TorontoRaptor416 is starting off with a positive reputation.
Ken is absolutely right. Do your homework. A lot of it will depend on how much you finance. You may find that the 0% works in your favor when you balance interest charges vs rebates lost. My experiences have been that the larger the amount financed, ie $30k+, 0% is your best bet. Your payments are typically lower as is your total amount financed. Food for thought
Reply With Quote
  #7 (permalink)  
Old 09-16-2008, 08:43 PM
1956MarkII 1956MarkII is offline
Post Fiend
 
Join Date: Apr 2002
Location: Rochester, NY USA
Posts: 7,686
1956MarkII has a very good reputation on FTE.1956MarkII has a very good reputation on FTE.1956MarkII has a very good reputation on FTE.1956MarkII has a very good reputation on FTE.
With the certain exception of Honda, virtually every company offers you the choice of either a cash rebate or reduced-rate financing. Have you ever wondered which incentive the manufacturer would prefer that you pick? Without a doubt, it's the financing. Think about it: if the loan should get paid off early, they (FMCC,GMAC, etc...) make out like a bandit. And these loans get paid off early all the time: trade-ins, totaled in an accident, people get tired of making the payments and just want to stop mailing a check every month. They get to "take back" most of an incentive they gave you to buy the vehicle in the first place. But when you take the rebate, how can they get that rebate back? They can't- it's gone, and there's no way they can recover it. My point is this: until loan rates, on average, get up into the 15% range, you're almost always better off to take the rebate. Figure it both ways; don't just assume 0% for whatever term is a good deal for you, just because it SOUNDS good.

And for the record, Honda has never offered a rebate, only lease deals and reduced-rate financing. There must be a reason...
__________________
Empower The Public, Pay It Forward
Reply With Quote
  #8 (permalink)  
Old 09-16-2008, 08:57 PM
TorontoRaptor416 TorontoRaptor416 is offline
Junior User
 
Join Date: Oct 2007
Location: California
Posts: 54
TorontoRaptor416 is starting off with a positive reputation.
Quote:
Originally Posted by 1956MarkII View Post
With the certain exception of Honda, virtually every company offers you the choice of either a cash rebate or reduced-rate financing. Have you ever wondered which incentive the manufacturer would prefer that you pick? Without a doubt, it's the financing. Think about it: if the loan should get paid off early, they (FMCC,GMAC, etc...) make out like a bandit. And these loans get paid off early all the time: trade-ins, totaled in an accident, people get tired of making the payments and just want to stop mailing a check every month. They get to "take back" most of an incentive they gave you to buy the vehicle in the first place. But when you take the rebate, how can they get that rebate back? They can't- it's gone, and there's no way they can recover it. My point is this: until loan rates, on average, get up into the 15% range, you're almost always better off to take the rebate. Figure it both ways; don't just assume 0% for whatever term is a good deal for you, just because it SOUNDS good.

And for the record, Honda has never offered a rebate, only lease deals and reduced-rate financing. There must be a reason...
You make some excellent points and honestly, its in most salespeople's best interest that you take rebate over rate. Let me show you something. Say you were buying a 2008 Expedition Limited 4x2. Assuming you were financing 28000 with all the rebates, your payments would be $543/month for 60 months at 5.99%. Now, if you were to take the 0% interest and lose the $3000 rebate (new financed amount climbs to 31000), your payments would drop to $517 (rounded up) per month. What about the interest charges though? For that 5.99%, your interest charge is approx $4500. So basically, it comes down to this. You'd have to spend $4500 to gain a $3000 rebate.
Does that make sense?

The only way the rebate makes more sense is if you're the type of person who doesnt keep the car/truck for the entire length of the loan but instead, get into something new every 3 years or so. In that case, take the rebates. They will lower your payoff amount.
Reply With Quote
Old 09-16-2008, 08:57 PM
Reply

Go Back   Ford Truck Enthusiasts Forums > General > Car/truck Buying Advice

Tags
37, 72, duty, f250, fiancing, financing, ford, free, honda, interest, months, paying, rates, sale, start, super, truck, trucks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On
Forum Jump



All times are GMT -5. The time now is 10:25 PM.


Powered by vBulletin® Version 3.7.5
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Advertising - Terms of Use - Privacy Statement - Jobs
This forum is owned and operated by Internet Brands, Inc., a Delaware corporation. It is not authorized or endorsed by the Ford Motor Company and is not affiliated with the Ford Motor Company or its related companies in any way. FordŽ is a registered trademark of the Ford Motor Company.

vbulletin Admin Backup