Does anyone know?
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This is why I asked the question about amount financed, length of loan, loans are based on interest paid first, the first 3-4 payments of an amortization schedule basically go to the interest not the principal.
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I apologize, you had me so pissed off last night, but basically I was pissed off at FORD finance/dealer for screwing people. That $1000 rebate is useless if you have to make 3-4 payments at 5.9% and then buyout/switch to 2.9% after that, as another poster commented, The amount of interest saved at 2.9% without taking the $1000 rebate is ENORMOUS.
jr
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Say your loan is $51,000..........with the rebate you borrow $50,000 for 72 months @5.9% the first 4 payments are mostly interest $966.15 to be exact Auto loan calculator - Bankrate.com
Now say you take a loan out for $51,000 for 72 months @2.9% (no rebate) more than half the interest in 4 payments and huge savings over the life of the loan Auto loan calculator - Bankrate.com
Now say you take a loan out for $51,000 for 72 months @2.9% (no rebate) more than half the interest in 4 payments and huge savings over the life of the loan Auto loan calculator - Bankrate.com
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From: Central Kansas
Say your loan is $51,000..........with the rebate you borrow $50,000 for 72 months @5.9% the first 4 payments are mostly interest $966.15 to be exact Auto loan calculator - Bankrate.com
Now say you take a loan out for $51,000 for 72 months @2.9% (no rebate) more than half the interest in 4 payments and huge savings over the life of the loan Auto loan calculator - Bankrate.com
Now say you take a loan out for $51,000 for 72 months @2.9% (no rebate) more than half the interest in 4 payments and huge savings over the life of the loan Auto loan calculator - Bankrate.com
Point being it's not a bad deal so long as you refi after the 4 payments (if you pay it off in full however then the savings aren't nearly as much). Obviously Ford is counting on people not bothering to refinance and I'm sure there's a lot of people out there that don't. But if you pay attention and refinance then you can still save some money.
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To be fair, you still save almost $500 even making the 4 payments at the higher rate. Using your numbers, the interest paid on the first 4 payments it's $966.15 - $483.57=$482.58. Not a bad deal certainly but it doesn't stop there. If you do refinance, you owe less at the end of 4 payments w/ a $50,000 loan than a $51,000 loan even at a higher rate. Assuming you borrow the $50,000 @ 5.9%, you owe $47,661. If you borrow $51,000 at 2.9%, you owe $48,393. Not chump change.
Point being it's not a bad deal so long as you refi after the 4 payments (if you pay it off in full however then the savings aren't nearly as much). Obviously Ford is counting on people not bothering to refinance and I'm sure there's a lot of people out there that don't. But if you pay attention and refinance then you can still save some money.
Point being it's not a bad deal so long as you refi after the 4 payments (if you pay it off in full however then the savings aren't nearly as much). Obviously Ford is counting on people not bothering to refinance and I'm sure there's a lot of people out there that don't. But if you pay attention and refinance then you can still save some money.
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