Lets Talk Finance!!
Senior User
Joined: Dec 2018
Posts: 276
Likes: 0
I’m still not on board. Using the 3.44% rate, a $25k loan for 36 months costs $1350 and a $30k loan for 48 months costs $2150. That seems like spending a dollar to save a dime if you ask me. If you’re prepared to make a $50k down payment, the balance of the purchase price isn’t much of a stretch from there. You also mentioned having your business make the purchase. I understand the rates are higher but with the current bonus depreciation allowed by the IRS, it might be the better way to go.
Mountain Pass
Joined: Jan 2017
Posts: 112
Likes: 24
Found our '18 350 6.7 4x4 Lariat on a lot in small-town America while visiting the folks about August last year. Called a few weeks later, they still had it on the lot. They wanted to get rid of it, $67,000+ sticker. Just shy of 6k in reductions. Purchased and went through our CU. $5k down and we'll pay off early with a sub 3% interest rate. No add on's, silly pricing, etc.
Hotshot
Joined: Jun 2003
Posts: 12,343
Likes: 4,368
From: SW VA
I went through Ford for the $500 rebate. When the first bill came, I went to my CU and refinanced it with them.
Even with my 805 credit score, I could only get 4.4% through them. Every other bank or CU I looked at stated that their bare-minimum rate was 3.75% and up.
I need to shop around this spring. A friend of my parents said they got a 2.5% rate on a new SUV last year. When I checked their website, the lowest rate advertised was 3.80%...so I don't know if I believe that one...
Even with my 805 credit score, I could only get 4.4% through them. Every other bank or CU I looked at stated that their bare-minimum rate was 3.75% and up.
I need to shop around this spring. A friend of my parents said they got a 2.5% rate on a new SUV last year. When I checked their website, the lowest rate advertised was 3.80%...so I don't know if I believe that one...
More Turbo
Joined: Mar 2018
Posts: 737
Likes: 13
In the OPs case, as I mentioned in my earlier mail, it'll all come down the numbers. Obviously the CU's giving him the better rate, he just needs to figure out which one of these options results in the least he has to borrow from the CU:
- Get loan from CU first, pay Ford upfront leveraging any cash incentives
- Give Ford only part of his 50k, combine the rest he has set aside with the loan from the CU when he pays Ford off
- Give Ford all of his 50k, pay off Ford with the loan from the CU.
Senior User
Joined: Dec 2018
Posts: 276
Likes: 0
Technically, you could have done better early last year. When I ordered my truck in Feb 18, they were offering 0%. When it came in in May, they were offering 0.7% (I think, not sure, might have been 0.9%, it was less than 1% either way). Now the rates seem to be around 4.99%. At least on the Canadian rates. Not that that really helps the OP.
In the OPs case, as I mentioned in my earlier mail, it'll all come down the numbers. Obviously the CU's giving him the better rate, he just needs to figure out which one of these options results in the least he has to borrow from the CU:
In the OPs case, as I mentioned in my earlier mail, it'll all come down the numbers. Obviously the CU's giving him the better rate, he just needs to figure out which one of these options results in the least he has to borrow from the CU:
- Get loan from CU first, pay Ford upfront leveraging any cash incentives
- Give Ford only part of his 50k, combine the rest he has set aside with the loan from the CU when he pays Ford off
- Give Ford all of his 50k, pay off Ford with the loan from the CU.
Posting Guru
Joined: Jan 2004
Posts: 1,628
Likes: 0
From: South...
I’ve financed a few to get the Ford incentive for their financing - but it was $1k on my ‘18 F150. The only catch was that I had to make at least one payment to get the $1k rebate...so I made one payment, then refi’d through my credit union...Ford’s rate was ~6.2%...my credit union’s - 2.49% for 60 months. It as worth it to me to go that route. I only refinanced ~$12k so will pay the balance off asap, but the 2.49 isn’t hurting me.
More Turbo
Joined: Feb 2018
Posts: 710
Likes: 3
From: Oregon
You’re putting down $25k and then immediately making a $20k or $25k payment and refinancing the balance. I’ll guess the balance is $20k on a $70k truck. Financing the $20k for 3 years @ 3.44% nets you a payment of $586 and interest charges of over $1k for the life of the loan. Why not skip the financing altogether, give up the $500 incentive and keep the $1k worth of interest payments in your pocket?
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Senior User
Joined: Dec 2018
Posts: 276
Likes: 0
I guess if someone told you to stop by the bank and pickup $500 you wouldn’t do it because it’s too much of a hassle.
BTW, it’s less of a hassle than shopping around for springs to save $50...
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Fleet Mechanic
Joined: Mar 2006
Posts: 1,519
Likes: 134
I found 2.75% through a different CU that I’ve been approved for. It’s only 36 month but I’m not narrowing a lot
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