I am pullin' my hair out about buying my next truck.

I have not yet decided on the final truck but I do know that it'll be an Excursion...well... It may be a SD Crew Cab... Oh and the new Expy is really nice but then the extended version is coming out soon so I should wait...plus if I get another Super Duty/Excursion I'll be addicted to FTE again and I'll never leave my house, will be on ebay all night looking for deals, I'll never be satisfied with my current mods...but I'll have the ****-eatin' grin on my face that I do not have driving my Cadillac, (sorry about the GM thing boys. It was a good deal at the time...)


ARGH!

AAAAAAAAAAHHHHHHHHHHHHH........

So anyway.

When you financed at 0% did you finance the actual sticker price?

Did you negotiate price and then finance at 0%?

I have excellent credit so I do not worry about qualifiying I just don't want to over pay for whatever I decide to get. Like an 4x4 XLT, 9 passenger, 6.0L, locked rear end, with tow mirrors and travel packaged Excursion; in silver please.

 

Can't help you with the fiancing question. Just wanted to say "HI", or "Aloha", glad to see you are still a Ford man at heart.

Hope you are settled, and you and the family are doing well.

Mark

 

monsta... hey dude!

i got mine on the zero down and zero percent financing..... used the X-plan deal.... i know the dealership hated that one since they make very little money off of it.... but they went ahead and did the deal. so i'd say negotiate the hell out of them!

and if they are still doing the zero down..... go for that. having to put no money up front and have no finance charges is a financial dream

 

Monsta,

Like a moth to a flame! Come on in, the water's nice.

When it comes to buying, my only advice would be to make sure you hammer out both a CASH deal and a finance deal.

The difference between paying cash and financing can be over $3000-4000 by the time the incentives etc.. are added.

0% financing does not equal FREE financing. Ford Credit gets their money one way or another.

If you've got excellent credit, and you're on good terms with your bank, it may be significantly cheaper to finance through them. The bank can usually give you more flexible terms as well. The only thing is, it takes a little leg work and shopping around to get the best rates out of the banks. IMHO, time well spent.

Hope all is well on the Big Island.

Waxy

 

Because they are trying to move inventory on the last of the Excursions, you may have good luck negotiating agressively on one of those with a 7.3L . . .

 

Don't hold me to this but I thought you could get the cash incentives or the 0% financing but not both. If that is the case it would be cheaper to take the cash incentives and get financing for around 4% from a bank. Of course there are a lot of variables in this but if I had to choose, I would stay away from 0% financing and take the cash off. Anyone have any experience with this?

 

waxy... how so?

how could your bank give you a better term than ZERO percent financing? my truck was 36k out the door (x-plan price plus tax and license)... with zero down and zero financing i pay 1000/month x 36 months.

period, no extra costs, nada, nothing!

i can't understand how you come up with your conclusion that ford credit is getting anything!

and even less understandable is your point that a bank could give you better terms than zero percent (i doubt any bank will give you money to take out a loan... if so, please tell me what bank you bank with!!)

and if monsta could get X-plan pricing, cash would get him no better deal..... and why would he even want to drop a penny on this if he could walk away with zero percent financing.... as i stated above, zero down, zero percent financing is a financial DREAM.... you can't do better than that (unless of course you give the name of this bank that will loan me money and then give me extra money to take their money).

sorry dude.... but i don't see your point.

 

negotiate negotiate negotiate by all means. Even with 0% the dealer gets paid $200 bucks from FMC just for writing the deal. He will not make any back end points so he will try and talk you out of it for something else. They will try and push the line of well you credit is not quit right and everything they can but that is a load. Remember even if they show you the sticker that does not show dealer hold back and kick backs. So work for you best deal.

 

abendx,

Thumper4995 touched on it, it works like this.

If you go in to buy you have two choices, cash or finance.

Cash - you are eligible for the "cash" incentives - rebates, cash back, accessories, etc... This value can often exceed $3000. Also, the dealer itself will offer an extra incentive for a cash deal, they get more money, faster, if pay cash.

Finance - 0% over a 3 year term on the sum of the price. You are not eligible for the cash incentives. It's one or the other.

So, if you negotiate to buy a truck at invoice, if you finance, you pay invoice. If you pay cash, you pay invoice MINUS whatever the rebates are, say $3000.

Now, go to your bank. I have good relationship with my bank, but they certainly won't pay me to borrow money. However, interests rates are VERY low right now. If you borrow the money at say 4-5%, the total interest payed over a 3 year term would be significantly less than $3000. See how it works now?

Also, if you finance through a bank, you have the option of more flexible terms. You could finance over say, 5 years, it'll drastically reduce your monthly payment. At the same time, there's no penalty for early payment, so if you want to drop $10000 on you loan after you scratch and win, no problem. I'm pretty sure Ford credit doesn't work that way.

Just think about it, how could Ford possibly finance the purchase of every vehicle for nothing? They couldn't, that's an astronomical amount of debt. There has to be some way that they're making it work. The answer is that you don't get the cash incentives. The cost of financing the vehicle is built in to the price.

In a lot of cases, the difference between cash and 0% financing is likely a wash. In your case, 0% may have been to your advantage. It depends on interest rates and the banks.

One definite advantage of taking the 0% is that Ford Credit is far more likely to approve you than the typical bank.

Clear as mud?

Waxy

 

clear as mud! lol.

i think the zero down/zero percent is a way of moving vehicles in the slow economy... i think they'd rather take sell the vehicles then not and if they have to take a beating on the financing side, they have to? i could be wrong tho?

when i bought, the interest rates were certainly not what they are now.

maybe if i had to buy at invoice or more, your route might have made sence.... i did get one rebate that ford was offering, but not another that was available at the time.... if i remember correctly, the motor company had some deal going that if you had a GM product, they'd pay you a grand to trade up to a ford..... my stupid mistake of buying a GM product paid off in the end i guess and since i didn't even give them the trade, it worked out best for me as they offered some think like 7k for the GM and i sold it for 16k on my own..... i learned a big lesson that day.... NEVER trade your vehicle, you'll do MUCH better on your own!

 

That's EXACTLY what it is.

I went so far as to call 0% financing a scam in another post, and in some situations, I think it is.

It was a brilliant marketing ploy that GM invented to get people in the door. People thought, "Wow! A free car loan!" when in fact, they were paying for it anyway. Even better for GM, they got you both ways, because they were now the lender/financier, taking away that profitable little job from the banks.

It's been so successful that the Japanese/Korean companies (even cartel known as Toyota!) have had to follow suit because they're getting slaughtered right now in sales numbers.

Waxy

 

Here you all go.....

Sticker is 36000
Finance at 0% like Monsta said is $1000/month for 36 months

Sticker is 36000
Cash rebate is 3000
Finance 33000 for 36 months at 5% is $989.04/month
Finance 33000 for 36 months at 4% is $974.29/month

Savings is $394.56 and $925.56 respectively.

And yes, I have never seen 0% financing and cash rebates/incentives together. It is usually one or the other.

 

Thanks jbalestri,

That's a little clearer than the mud I posted.

Waxy

 

man... you guys keep doing this, i might have to give an *** supspension package out for free!

 

CASH????
Hell no don't tell them you are paying cash! My dad has a used car dealership and worked for a new car dealer for years. I sold new cars and had an ATV dealership.
A dealer makes money on the back end! When my dad sell a car he gets between $150 and $300 just for sending financing it, the bank pays this to him not the customer then if you get a buy rate of what ever % by law I can add up to 3% to that and that is also my money. And you get funded right away there is no wating for money. The CASH deal is a mith and nothing more, a dealer makes more money financing you!
On a typical deal I can make up to a grand more if you finance. Even if you are going to pay cash or if you have your own bank financing tell them you are going to finance it through them. If you bring your own bank money with you it is worse than a cash deal because your bank will handle TT&L and guess what if I do it I charge you for it so I make more money. If your bank does it they make the extra!