Ford Financing Question
Laughing Gas
Joined: Jun 2018
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From: DFW
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Freshman User
Joined: Apr 2018
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I did almost exactly the same last week. Half down, FMCC the rest. 72 mo's @ 8% to get the $500 incentive. Finance guy recommended to make the first payment for the credit cycle to "flush out" and prevent them from taking the credit back, then either pay it off or re-fi elsewhere. There is no penalty for early payoff.
Junior User
Joined: Aug 2018
Posts: 74
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I did almost exactly the same last week. Half down, FMCC the rest. 72 mo's @ 8% to get the $500 incentive. Finance guy recommended to make the first payment for the credit cycle to "flush out" and prevent them from taking the credit back, then either pay it off or re-fi elsewhere. There is no penalty for early payoff.
yikes
FTE Community Team
Joined: Mar 2017
Posts: 3,337
Likes: 1,050
From: Florida
They will email you a payoff letter that you can provide to credit union to refinance or to FedEx a check from you to pay it off. I’ve done this many times. I seem to remember there may be a $50 fee to pay off early. But you only pay interest from date loan was signed to the date they receive your payoff check. A $50,000 @ 8% is $10.96/day interest. Every day you wait costs you.
FTE Community Team
Joined: Mar 2017
Posts: 3,337
Likes: 1,050
From: Florida
it it depends on your state. Florida charges you 0.35% doc stamps on loan value when loan is initiated. Then I believe FMC charges a $50 fee to pay off the loan. So on a $50,000 loan FL doc stamps are $175 plus the FMCC Fee of $50. That eats into the $500 credit rebate which BTW you pay sales tax on. In Florida that’s about $35 in sales tax on the rebate. Plus if you refinance there’s a few days overlap from new loan initiation until Ford Loan payoff is booked. For those few days you’re paying interest on both loans.
And in Florida you will pay the 0.35% doc stamps again on the new loan value.
If if you are planning on paying cash then just finance $5,000 and pay the rest as a down payment. You will qualify for the $500 FMC Credit rebate and pay it off ASAP.
Mountain Pass
Joined: Jul 2018
Posts: 101
Likes: 0
YOU DON’T NEED TO WAIT UNTIL AFTER FIRST PAYMENT. Call Ford Motorr Finance, ask them for a Loan number and a payoff price. It takes about 5 days after you sign for the truck to get the loan number.
They will email you a payoff letter that you can provide to credit union to refinance or to FedEx a check from you to pay it off. I’ve done this many times. I seem to remember there may be a $50 fee to pay off early. But you only pay interest from date loan was signed to the date they receive your payoff check. A $50,000 @ 8% is $10.96/day interest. Every day you wait costs you.
What would be the optimal workflow to get whatever the current Ford Finance Initiative is? What is the minimum amount allowed to finance,( I'm not going to refinance )? Would I still need to call Ford Financing and request the loan number as you suggest above or since I was doing the minimum loan amount can I just pay it off the first month with minimal interest ? Thanks for any help.
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FTE Community Team
Joined: Mar 2017
Posts: 3,337
Likes: 1,050
From: Florida
Flyct,
What would be the optimal workflow to get whatever the current Ford Finance Initiative is? What is the minimum amount allowed to finance,( I'm not going to refinance )? Would I still need to call Ford Financing and request the loan number as you suggest above or since I was doing the minimum loan amount can I just pay it off the first month with minimal interest ? Thanks for any help.
What would be the optimal workflow to get whatever the current Ford Finance Initiative is? What is the minimum amount allowed to finance,( I'm not going to refinance )? Would I still need to call Ford Financing and request the loan number as you suggest above or since I was doing the minimum loan amount can I just pay it off the first month with minimal interest ? Thanks for any help.
The sooner you pay it off the less less you pay in interest. $10,000 @ 6.9% is $1.89/day ininterest.
Just call them at 800-727-7000 after 5 days and ask for a payoff letter. They can track it via VIN number.
It takes about 5 days for the Loan to populate to their system. They have no hesitation providing the payoff letter via email immediately. They go through this all the time. That makes it simple. The loan payoff letter will have all instructions. Sending your check to the payoff dept with the letter attached gets the title cleared quickly. If you send a personal check they hold off clearing the title for I think 10:ndays but stop charging interest as of the date they receive your check.
Another thing I do is use a credit card as much as they allow towards down payment to get credit card reward points to use for cash back. My Chase Unlimited VISA Card gives me 1.5% cash back. Most dealers only allow $5,000 on a credit card but that’s still $75 in rewards points at 1.5%.
Fleet Mechanic
Joined: Jan 2015
Posts: 1,377
Likes: 292
From: SE Michigan
I did almost exactly the same last week. Half down, FMCC the rest. 72 mo's @ 8% to get the $500 incentive. Finance guy recommended to make the first payment for the credit cycle to "flush out" and prevent them from taking the credit back, then either pay it off or re-fi elsewhere. There is no penalty for early payoff.
I've done this twice, each time for $1,000 incentives to finance with Ford Credit. Both times, my first payment to Ford Credit was my last payment to Ford Credit.
Fleet Mechanic
Joined: Jan 2015
Posts: 1,377
Likes: 292
From: SE Michigan
Nope. The ONLY way they can charge you a prepayment penalty would be if it was literally stated in the contract that you signed.
Fleet Mechanic
Joined: Jan 2015
Posts: 1,377
Likes: 292
From: SE Michigan
Flyct,
What would be the optimal workflow to get whatever the current Ford Finance Initiative is? What is the minimum amount allowed to finance,( I'm not going to refinance )? Would I still need to call Ford Financing and request the loan number as you suggest above or since I was doing the minimum loan amount can I just pay it off the first month with minimal interest ? Thanks for any help.
What would be the optimal workflow to get whatever the current Ford Finance Initiative is? What is the minimum amount allowed to finance,( I'm not going to refinance )? Would I still need to call Ford Financing and request the loan number as you suggest above or since I was doing the minimum loan amount can I just pay it off the first month with minimal interest ? Thanks for any help.
1. Sign the loan paperwork with Ford Credit, drive away with your new truck and your "extra" incentive for using them. Put down as much or as little as you want, doesn't matter, because what you don't put down you'll just pay your CU when you refinance.
2. Contact your credit union, apply to refinance your vehicle. They will contact Ford Credit and obtain the payoff amount (good for 10 days). Also, if you want to add the cash (that you did NOT put down on the vehicle) at this time, then just do that and finance less with your CU.
3. Sign your loan paperwork with Ford Credit and your CU will send a check and pay off your truck. Any over-payment for interest will be returned to your CU, and they will deposit those funds into your savings/checking account.
You got your $500 (or, in my cases, $1,000) incentive. They can't take it back. And you have a low interest loan from your CU. Done.
Fleet Mechanic
Joined: Jan 2015
Posts: 1,377
Likes: 292
From: SE Michigan
Another thing I do is use a credit card as much as they allow towards down payment to get credit card reward points to use for cash back. My Chase Unlimited VISA Card gives me 1.5% cash back. Most dealers only allow $5,000 on a credit card but that’s still $75 in rewards points at 1.5%.
Tuned
Joined: Oct 2006
Posts: 449
Likes: 40
All you need to do is call whoever is going to lend you money and they will do a credit check and see where you fall on your DTI. Before buying my truck I called my credit union to verify what rate they would lend me money at. I knew I could afford it, but know I have a mortgage that is large and was looking to put down minimal on the car load (the return on my investments is better than the rate on the loan). Yeah it pains me to have such large loans but it works out better to leave my money where it is.
The bank may have an underwrite look at your financials but it's an easy process that can be done over the phone. The one thing is you need to know how much you want to borrow and not ask how much can I borrow.
The bank may have an underwrite look at your financials but it's an easy process that can be done over the phone. The one thing is you need to know how much you want to borrow and not ask how much can I borrow.