When will the 2017 drop?
Postmaster
Joined: Jun 2014
Posts: 2,775
Likes: 7
From: Lewisberry, Penn
Are you saying rebates from the factory or 0% from Ford have no $ effect on your bottom line profit and what deal you would be willing to let the truck go for?
Edit: I've also lost deals because customers are idiots. I show them the payment at 0% and they buy the truck down the street for a higher payment because the truck cost less. So between that, and not making any money from Ford finance, many folks don't offer 0% until it's inquired about.
Moderator
Joined: May 2005
Posts: 8,229
Likes: 1,247
From: San Antonio, TX
I've always found my payment lower when I choose to take the rebates and finance 48-60 months at low interest. Taking the 0% and giving up the rebates has always made the payment higher, at least at the times I was buying. Not saying it hasn't happened, but I have never seen 0% offered without an offsetting rebate.
Postmaster
Joined: Jun 2014
Posts: 2,775
Likes: 7
From: Lewisberry, Penn
The shorter the term and the better the interest rate and the lower the amount financed the less 0% is going to help. Fact of the matter is very few folks I see finance for less than 60 months, and most retail sales go to 72. So yes, certainly very important to look at both options because you do give up rebates to get the 0%. I just sold a F150 for $28k last week to a repeat customer and for that case it was better to take the $6000 rebates I could get him. Many times the rebate isn't quite that high, and many folks don't qualify for very low rates (especially commercial loans).
Not trying to get in a "best rate" war, but the best I've generally seen lately is 2.49%
@ 72 months a $50k truck would have about $4200 in finance charges
@ 60 months it drops to $3500, and @ 48 months its down to $2800 in finance charge.
Many times folks who don't qualify for 2.49 type rates can still get 0%. I had a customer go from paying 16% with a credit score in the mid 600s get qualified for the 0% on his new vehicle. Talk about an interest savings!
The 0% also covers any upfits (dump truck bodies), or negative equity as well. It's not the only option, but for a large majority of deals, it does get the lowest payment. And I make nothing on it )-=
Not trying to get in a "best rate" war, but the best I've generally seen lately is 2.49%
@ 72 months a $50k truck would have about $4200 in finance charges
@ 60 months it drops to $3500, and @ 48 months its down to $2800 in finance charge.
Many times folks who don't qualify for 2.49 type rates can still get 0%. I had a customer go from paying 16% with a credit score in the mid 600s get qualified for the 0% on his new vehicle. Talk about an interest savings!
The 0% also covers any upfits (dump truck bodies), or negative equity as well. It's not the only option, but for a large majority of deals, it does get the lowest payment. And I make nothing on it )-=
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