Lets Talk Finance!!
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Fleet Mechanic
Joined: Mar 2006
Posts: 1,519
Likes: 134
Lets Talk Finance!!
I know it's not the most fun topic but I need some advice. I have never purchased a new vehicle and don't have much experience with vehicle loans. I know houses only.
I'll be picking my truck up in about a week or two and trying to get this finance thing figured out. Originally wanted to go through the business but the rate is almost 10%. The dealer I am using ran the numbers and through ME only got it to about 5.44% if I put 10K-25K down and finance the rest. I originally wanted to put about 50K down and finance the balance but the dealer told me if I put that much down the rate sky rockets. He said anything over 25K down the rates go high. I contacted a local credit union who is at 3.44% and does not matter, NEW or USED or the amount I borrow.
My thought is go through Ford finance to save the $500 on the truck with lets say $25,000 down. Then when I get home make a payment of 20-25K towards the truck and refinance the rest through a credit union. I am trying to keep the payments down and not in the $700-$1000 range.
Any help is appreciated.
Thanks in advance
I'll be picking my truck up in about a week or two and trying to get this finance thing figured out. Originally wanted to go through the business but the rate is almost 10%. The dealer I am using ran the numbers and through ME only got it to about 5.44% if I put 10K-25K down and finance the rest. I originally wanted to put about 50K down and finance the balance but the dealer told me if I put that much down the rate sky rockets. He said anything over 25K down the rates go high. I contacted a local credit union who is at 3.44% and does not matter, NEW or USED or the amount I borrow.
My thought is go through Ford finance to save the $500 on the truck with lets say $25,000 down. Then when I get home make a payment of 20-25K towards the truck and refinance the rest through a credit union. I am trying to keep the payments down and not in the $700-$1000 range.
Any help is appreciated.
Thanks in advance
Senior User
Joined: Dec 2018
Posts: 276
Likes: 0
Your plan will work. Get the rebate and then pay it off, refinance or a combination of both. Do not listen to your dealer. He will oppose you paying it off or refinancing because he will gt penalized by Ford and lose the incentives he gets for selling a FFS loan.
Tuned
Joined: Feb 2017
Posts: 394
Likes: 75
From: Alaska
Your plan is just fine. I've done it myself a couple times. Finance through Ford for the rebate, wait for the paperwork to finalize, account numbers to be assigned, etc. Then refinance with your credit union. I think it took about 7 to 9 days for my last loan to work its way through the process. Best not to mention it to your dealer, as many dealers lie about the process.
Best of luck, and post pictures after you get the truck home.
Best of luck, and post pictures after you get the truck home.
Mountain Pass
Joined: Oct 2018
Posts: 121
Likes: 1
Agreed with all, the dealer makes money on the back end when they run through Ford finance, just let them go that way and then refi through your bank.
The only thing to watch is retail money, right now Ford is offering $1250.00 cash back on a 2019 and more on a 2018 but not if you finance through Ford. So you may end up better with that.
Here is a link to dealer incentives: https://www.edmunds.com/ford/f-250-s...ty/2019/deals/
The only thing to watch is retail money, right now Ford is offering $1250.00 cash back on a 2019 and more on a 2018 but not if you finance through Ford. So you may end up better with that.
Here is a link to dealer incentives: https://www.edmunds.com/ford/f-250-s...ty/2019/deals/
Tuned
Joined: Oct 2017
Posts: 266
Likes: 48
From: Ohio
Finance thru Ford then bail on their finance. I love the vehicles but they make tons of money on the finance end. Somehow we ended up paying an extra charge to Ford every month. We just paid it off couple months later but it was around a$50 extra charge. They are not doing the $500 rebate out of the goodness of their heart.
Hotshot
Joined: Nov 2000
Posts: 11,591
Likes: 14
From: Pflugerville, tx
and watch out as you go thru the finance department.. they WILL try to slime in ANYTHING they can.. check every number and object to anything more than the truck.
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New User
Joined: Jan 2019
Posts: 6
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I suspect the dealer makes less money from 'small' loans vs larger ones, and that's why they're feeding you this line of BS.
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Lead Driver
Joined: Oct 2014
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From: NY/Canada border
Just run your plan by your credit union first to make sure they'll go along. Having the big Ford debt hanging over your head may change their outlook. I know it's done all the time and shouldn't be a big deal. I'd just make sure your bases are covered before you bite on Ford's financing. But with your substantial down payment I'm guessing you'll be fine with the CU because of so much positive equity.
Agreed. Watch out for extended warranties, fabric protection, paint protection, gap insurance, etc. You shouldn't need gap with the money you're putting up front. If you want any of that stuff is one thing but don't let them try to slide it under the radar
Agreed. Watch out for extended warranties, fabric protection, paint protection, gap insurance, etc. You shouldn't need gap with the money you're putting up front. If you want any of that stuff is one thing but don't let them try to slide it under the radar
Junior User
Joined: Oct 2013
Posts: 54
Likes: 2
Second this for sure. Dealers tried it on us when we bought my truck and my wife's explorer. Two different dealers. Great buying experiences for both until we got to the point of signing papers. Watch the numbers carefully no matter how you are paying for it. They try and tack on all sorts of B.S. for instance on the Explorer wanted to charge $100 for wheel locks and $500 seat stain and pain coverage on my truck.
More Turbo
Joined: Mar 2018
Posts: 737
Likes: 13
I thought cash incentives were usually the best deal? Either way, have your dealer show you all the numbers, cash, the lower down, and the higher down. They're going to try to distract you with rates, monthly payments, etc.. Take them in, but then ignore those. You're only interested in the outstanding balance required to pay off the loan.
Hotshot
Joined: Nov 2000
Posts: 11,591
Likes: 14
From: Pflugerville, tx
Second this for sure. Dealers tried it on us when we bought my truck and my wife's explorer. Two different dealers. Great buying experiences for both until we got to the point of signing papers. Watch the numbers carefully no matter how you are paying for it. They try and tack on all sorts of B.S. for instance on the Explorer wanted to charge $100 for wheel locks and $500 seat stain and pain coverage on my truck.
Mountain Pass
Joined: Jul 2018
Posts: 243
Likes: 18
From: PA
Exactly! The larger the loan, the more they get paid as the bank is expected to make more off the back end. Never trust anything finance at the dealership tells you.
Cargo Master
Joined: Aug 2010
Posts: 3,225
Likes: 63
And when they say you have to pay for the extras like paint, seat protection, window etching etc because it was already done, tell them to remove those items (probably wasn’t done anyway).
If they balk, get up and walk out.
Pretty much guaranteed you won’t make it to the door before they back off.
Finance, go with the best deal then change after a month. When we bought our new RV last year the best rates were only with 20 year notes. That’s what I did to get out the door. Refinanced it last month.
Don't roll an extended service plan into the loan.
You cannot get the best deal at your selling dealer.
You have have extra cash? Buy the service contract from one of the online Ford dealers. Probably be half of what your dealer is offering.
If they balk, get up and walk out.
Pretty much guaranteed you won’t make it to the door before they back off.
Finance, go with the best deal then change after a month. When we bought our new RV last year the best rates were only with 20 year notes. That’s what I did to get out the door. Refinanced it last month.
Don't roll an extended service plan into the loan.
You cannot get the best deal at your selling dealer.
You have have extra cash? Buy the service contract from one of the online Ford dealers. Probably be half of what your dealer is offering.