In order to receive the extra incentives on the purchase, the dealer is setting me up to finance with Ford, to which the approval is given. The question comes in as to how long does Ford require you to keep this loan as to receive these extra incentives. I have a much lower rate ready to go with my Credit Union but the extra cash from Ford is really nice. Does anyone have info on how long you must keep the Ford loan to keep the incentives, or if you can pay the loan off at any time? Rates with my CU are about 3% lower which make the payment much more comfortable.
Is there any verbage in the documents that reflect you must pay it back if you pay off early?
Any help is appreciated.
I just purchased my 09 F150 on April 29 and financed the minimum amount required ($7000) with Ford to get the $1000 rebate. As soon as I got the coupon book for the payments in the mail I paid off the remainder. The dealer may tell you that you have to finance it for at least 90 days but if you read the back of the contract there is no mention of a penalty for early payoff. It is definitely worth doing to get the rebates.
This is common dealer "misinformation", strongly suggested by Ford Credit no doubt. They often say 90 days or 3 payments, then you can pay it off with no penalty. Of course this is true.
It's also true you can pay it off much sooner than that: as soon as you get a loan number. I called Ford Credit 3 business days after I purchased my truck, got the loan number, and over-nighted payment.
You'll need to run the numbers to determine which is a better deal, but there's a good chance the additional Rebate + ford financing will still be better than your credit union's lower rate. Your payments might be higher with ford, but the total cost of the vehicle will probably be lower. It depends on trade-n, downpayment, etc. The best calculator I found is here: http://www.newcars.com/loan/loancalcincentives.html
Keep in mind if you refinance through your credit union for the lower rate, you may have to get the "used car" rate. Which is sometimes different than the new car rate.
I took the Ford incentive and got 2k rebate for financing through Ford, but they charged me 9 percent interest (and my credit rating is 320 go figure). I had the money to pay cash for the truck but took the financing to get the extra 2 grand off of the price. They told me I had to wait 90 days before I paid it off in order to get the rebate, but I looked at all my loan papers and no where does it say this, my first payment statement even says what the cash payoff is and where to mail it. I called my father who works for the dealer and told them what they said and he said the 90 day period is only so the finance person gets their commission on the sale, if its paid off before hand then they lose it. But at 9 percent screw that. I thought about paying off all but 2 payment amounts worth if I did get stuck so to minimize the interest paid, but like others said just pay it off with the lower interest rate form you credit union, etc.
My dealer told me that I have to wait to get the title before transferring it to the bank and my bank confirmed that. Not sure how it works out but the 9.9% APR from Ford is going to hurt but I should only be making 1 payment. So I should still be saving quite a bit when I refinance it at my credit union.
My dealer told me that I have to wait to get the title before transferring it to the bank and my bank confirmed that. Not sure how it works out but the 9.9% APR from Ford is going to hurt but I should only be making 1 payment. So I should still be saving quite a bit when I refinance it at my credit union.
Dan
no...because you won't ever recieve the title in the first place.
The DMV will send it to the LEIN holders...Ford
So finance it via Ford, turn around and do it with your Bank. Worst case, it takes 1-2 months for the Title to make it's way from DMV to Ford to You and finally to your bank.
Here in MN, you get a green official title and it says "1st secured party" on it. I still get a legal title, it shows both of us as lienholders. So when I get that, then I can have my bank pay off Ford.
Here in MN, you get a green official title and it says "1st secured party" on it. I still get a legal title, it shows both of us as lienholders. So when I get that, then I can have my bank pay off Ford.
Dan
even better. I guess you'll need an official Payoff letter from Ford before the DMV will remove them as the Lein Holder though.
I wish some of the places I have been offered that. It has been a major PITA to get the title released on a few occasions
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