FMCC
Tuned
Joined: Feb 2017
Posts: 394
Likes: 75
From: Alaska
So if you take the customer cash and refi early. Does Ford Credit keep track of that and possibly not give you loans on future trucks? I buy a new truck every 3-5 years. On my 2017 it was a $1200 customer cash, I would hate to get blackballed and not be able to get that discount on the next truck.
On the other side of the coin, I developed a small tear in my Platinum seat in less than 5,000 miles, Ford said they will not warranty it. So I'm like, I'll take my loan some where else.
On the other side of the coin, I developed a small tear in my Platinum seat in less than 5,000 miles, Ford said they will not warranty it. So I'm like, I'll take my loan some where else.
As an aside, I paid off the loan to my wife's 4Runner about 18 months after buying it. The dealer called while I was on a road trip telling me they can get me into a newer vehicle with a lower monthly payment. I said, "You mean you will pay me to drive a new vehicle? 'Cause that's what you're going to have to do to get my payments any lower." The sales lady got a laugh out of that, and then I asked her to remove me from her marketing list.
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Mountain Pass
Joined: Sep 2015
Posts: 133
Likes: 4
Finance guy told me same thing "Make sure to wait three months before you refinance." I asked why and he told me that they don't receive their kickback from FMCC unless we keep the loan for three months.
The current incentive when I bought my truck was $750 to take the FMCC financing. So I took their financing at 5.9% and received the $750 credit. 3 days later I refinanced with my credit union at 1.79%. If I would have keep the Ford loan for the 3 months the difference in interest was considerable and would have negated most of the savings benefit of the $750 credit.
Using an auto loan calculator with amortization schedule you can figure out the cost of the interest difference between the two loans. $758.09 (FMCC Interest for 3 months) - $229.64 (Credit Union Interest for 3 months) = $528.45
So the cost to me to keep the Ford financing was $528.45 more than refinancing. So like I said I refinanced as soon as possible. It has been 7 months now and no one from Ford has called asking for their $750 rebate back.
For general reference here's the breakdown of total interest paid over the life of the loan between the two options.
Amount Financed $52,000
FMCC loan at 5.9% = $9872.31
Credit union loan at 1.79% = $2881.11
Difference = $6991.20
So now you can see why Ford wants to finance your loan for you at a higher rate. The $750 that they give you is a pittance compared to the total interest.
The current incentive when I bought my truck was $750 to take the FMCC financing. So I took their financing at 5.9% and received the $750 credit. 3 days later I refinanced with my credit union at 1.79%. If I would have keep the Ford loan for the 3 months the difference in interest was considerable and would have negated most of the savings benefit of the $750 credit.
Using an auto loan calculator with amortization schedule you can figure out the cost of the interest difference between the two loans. $758.09 (FMCC Interest for 3 months) - $229.64 (Credit Union Interest for 3 months) = $528.45
So the cost to me to keep the Ford financing was $528.45 more than refinancing. So like I said I refinanced as soon as possible. It has been 7 months now and no one from Ford has called asking for their $750 rebate back.
For general reference here's the breakdown of total interest paid over the life of the loan between the two options.
Amount Financed $52,000
FMCC loan at 5.9% = $9872.31
Credit union loan at 1.79% = $2881.11
Difference = $6991.20
So now you can see why Ford wants to finance your loan for you at a higher rate. The $750 that they give you is a pittance compared to the total interest.
Cross-Country
Joined: Dec 2013
Posts: 66
Likes: 0
From: New Hampshire
Finance person at dealership told me I should wait until the title was rendered by DMV before refinancing . In NH, up to 3 months or more. Got 1200 off for signing a marker at 5.9%. Way too high for tier 1 credit , credit unions (and probably banks- I never checked-) were selling money at less than 3%. This was 4Q 2017 .Applied for refi from the lowest rate credit union.but to my dismay, they REQUIRED the title be rendered before they would execute loan. Persistence paid off, as I called FMCC every day to see if the 3rd party company they use had received the title.Took 45 days, but I was lucky, paid 1 payment to FMCC before payoff was executed with zero days to spare! I asked FMCC why they don't offer refinancing, it is not their business surprisingly. They obviously lose tens of thousands of loans (more?) every year. IF I was a FORD stockholder, I would sell ...And let's face it. if they offered a competitive rate AND the rebate , as a reward for financing with them, most of those loans would remain with them=win/win.
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