Ford financing/rebate question
Lead Driver
Joined: Oct 2014
Posts: 5,956
Likes: 1,361
From: NY/Canada border
I've been in both positions in the past. Either got just a little more than I owed on the trade or walked in and only traded for a few thousand. The point being that everyone isn't in the same financial boat to get loans approved basically back to back when the first loan doesn't have a payoff amount favorable enough for the second lender. But as you say, different lenders have different standards. Those who roll debt from the current truck into the new would be a good example not being able to take advantage of using FC and then refinancing, but as most of us know that's never a good financial move anyway just to have something new. But we all probably know someone who always has a new vehicle but it probably still paying for one from several years back.
Logistics Pro
Joined: Mar 2019
Posts: 4,064
Likes: 13
There's always the possibility of another lender telling you that you don't have a good enough "loan to value" ratio if there wasn't enough money "down" applied to knock down the price of the new truck enough, such as when the trade value barely pays off the old truck.
I've been in both positions in the past. Either got just a little more than I owed on the trade or walked in and only traded for a few thousand. The point being that everyone isn't in the same financial boat to get loans approved basically back to back when the first loan doesn't have a payoff amount favorable enough for the second lender. But as you say, different lenders have different standards. Those who roll debt from the current truck into the new would be a good example not being able to take advantage of using FC and then refinancing, but as most of us know that's never a good financial move anyway just to have something new. But we all probably know someone who always has a new vehicle but it probably still paying for one from several years back.
I've been in both positions in the past. Either got just a little more than I owed on the trade or walked in and only traded for a few thousand. The point being that everyone isn't in the same financial boat to get loans approved basically back to back when the first loan doesn't have a payoff amount favorable enough for the second lender. But as you say, different lenders have different standards. Those who roll debt from the current truck into the new would be a good example not being able to take advantage of using FC and then refinancing, but as most of us know that's never a good financial move anyway just to have something new. But we all probably know someone who always has a new vehicle but it probably still paying for one from several years back.
Logistics Pro
Joined: Jan 2011
Posts: 4,892
Likes: 3,452
From: Ohio
Looks like it costs you $20 per month per 10K in loan amount to keep that 7.8 loan vs 3.4 which is what my CU is offering. How long you keep that loan is up to you. Seems like there are some pretty good deals on 19's, good for you.
More Turbo
Joined: Oct 2017
Posts: 562
Likes: 45
I was in the same situation on my two Super Duty trucks. I never made a single payment to FMC. I waited two weeks for FMS to process the paperwork, called and got a payoff, and refi’d with my credit union at less than 3%, and they considered it a new purchase. Even with credit scores well over 800, FMC’s “great rate” was 5.95%. I dropped my payment significantly, and cut the total interest in half. The dealer looks out for their bottom line, I look out for mine.
Tuned
Joined: Feb 2018
Posts: 339
Likes: 25
I was in the same situation on my two Super Duty trucks. I never made a single payment to FMC. I waited two weeks for FMS to process the paperwork, called and got a payoff, and refi’d with my credit union at less than 3%, and they considered it a new purchase. Even with credit scores well over 800, FMC’s “great rate” was 5.95%. I dropped my payment significantly, and cut the total interest in half. The dealer looks out for their bottom line, I look out for mine.
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sbrennan007
2017 - 2022 Super Duty
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Nov 12, 2019 08:39 AM
