If this were the case, what would stop the customer from refinancing immediately, thus preserving whatever discount they got from Ford Finance and beating the dealer out of their end for financing? I wonder if it's in the contract language that you have to make X amount of payments? If not, I'm with you in saying screw 'em. I'm looking out for my bottom line, not the dealer's.

​​​​​​Always a good idea to have an approved rate before you make your deal. If the dealer can beat it, great. If not, you're ahead with your own financing.

 

Couple things wrong with that. When you refi, most banks and credit unions will not give you a new car rate because technically it is a used car, then you then have more title fees and transfer fees with the state, which I'm sure when added up become a giant deal breaker and wont pencil out unless the rate is quite a bit lower. In my case though the Ford prefered rate was lower that my own credit union so they actually did me a huge solid with the $1500 back and lower rate, no complaints on my end for sure.

 

It doesn't really affect me personally. But if you read through the posts apparently many have done it. They must have found a way to make it worthwhile.
In the past I've found that sometimes the incentives from Ford Finance make a little higher rate worth it. For example, if the incentives plus a little higher rate from Ford pencil out to be a lower payment for the same term of months than a lower rate with no incentives from an outside financer, then I've done it. But every situation is different and all options have to be checked out. Online payment calculators can be handy for this.

 

I can't speak for every contract, but in Fords case there is no clause stating that the buyer must make x amount of payments to retain the financing incentive. That is why you see so many suggest taking the incentive then refi as soon as possible. Now some dealers will lie to the buyer, telling them they must make 3 payments to get the incentive, others might be honest and just request that the buyer does, explaining why. The bottom line is the buyer is not obligated to do so.

Another worth knowing is that typically when they offer a cash back finance offer the accompanying rate is high. So high you would be crazy to hold it. In 19 the finance offer was $1k cash back, but the rate on a 72 month for example, was 7.9% lol, 3.8% or so was the average rate on that term with most other lenders at the time(in this area). I had an Experian credit score of 861 out of 900.
That is why many, including myself, have taken the rebate and refi ASAP. Currently there are no such Ford financing incentives.

Just about every lender I contacted based their rates off of MY. Anything two MY or less is considered "New". Over that was "Used".
I'm not sure where title and transfer fees come in, I've never seen any if that on an auto refi. Maybe that depends on state you reside in?

 

Maybe the title transfer fees are incurred when you have to have the title laundered? It would have to be routed from Ford, through your local DMV in order to change the name of the lien holder, and then sent off to the new financing company? That would be the case here in Delaware.

 

I'm sure similar here as well. Maybe some lenders just absorb it being that they are banking on the interest, and something like a simple change of lienholder on title is a very small fee. Maybe $10-$15. One of the CU's I considered will actually give you $100 for bringing the loan to them. Unlike a home loan, an auto loan requires no financial penalty that would make it a deal breaker. The rate is the only real consideration.

I ultimately chose the CU that gave me the lowest rate, rather than the one offering $100. Cost me nothing other than opening an account with a minimum of $5 in it.

 

This could actually be a good thing.. My credit union offers 1.5% (max $300) on ANY car loan you bring to them. So if the dealer wants to BS me, fine Ill play along and finance through ford and within a week or so Ill have my credit union take over the loan and ill take my $300 and get some BS accessory for the truck lmao!!!

 

My CU is sitting at 2.99% and has been for about 6 months. So barring Ford beating that, which they haven’t been on SD trucks from what I can tell, I’ll likely be sticking with my CU.

 

I’ve taken Ford financing and either paid off the loan within days or refinanced with credit union within days many times. My experience with USAA and PenFed credit union is that they offer new car rates when immediately refinancing.

Normally I pay cash for vehicles unless there is a rebate to take Manufactures finance company. Last Ford I did that with was my 2019 F150. I financed $10,256 ($10,000 minimum required to finance to receive the $500 rebate), put $5,000 on a credit card for points and wrote a check for $11,500, the remainder. Three days later I called FMC to get the loan number and then paid off the Ford loan online that day. My credit cards are paid in full automatically every month on due date so I didn’t have any interest due on the credit card bill. So I got $500 in rebates to finance with Ford and got $75 in cash back from my Chase credit card for the $5k I put on it.

I try to maximize rebates and be creative as possible.

 

Here in Ma. the title has two entries for release of lien holder, and 3 entries for dealer ownership or transfer, and one spot for private party selling. I do not believe the title has to do anything until private party sells or buys. Dealers can release to each other 3 times before the titles full and lien holder twice. We pay a title fee at purchase so when final is made when ever they release lien and we get the title with our name on it, it's prepaid @ dealer. All this stuff is rolled right into the loan to make it easier for some to afford, or you can handle it other ways. They do want you to have skin in the game as you should (down payment, or trade in).

 

Points are good. Last several years some merchants aren't laying down for the 3% or whatever they are charged from Visa or other cards. My dealer would only allow $5K on the charge. Colleges will charge a fee for a card payment as does the garage where I get my sticker. That stuff adds up. 2% on all purchases

 

T all to ford credit before your dealer does if your credit is good u will get better than a credit union and never buy a Ford with out ESP

 

That's great to have an dealer you trust, keep your business there. Remember that after the deal is made you're working with Ford Credit, not the dealer.

 

There is nothing to stop you from doing that. I often ask the dealer questions just to see if they answer honestly. If we're talking Ford Credit and they tell me I *must* make at least three payments - which is simply not true (and I've heard multiple times from different dealers) then I no longer feel the need to be totally honest with them. I will simply do what is in my best interest.

 

Obviously you want to have your plan in place before playing games with financing from multiple institutions. I've been buying long enough that I can pay cash for me vehicles, so when I get money back for financing I'll take it and then just pay off the balance immediately.

Also note that you don't have to finance the entire purchase to get the deal from Ford Credit. This is another area where some dealers just make s**t up, I've been told from $1000 to $30,000. But that's just a question I ask to see how honest the dealer is being, lol. I don't really care how much it is. (I don't know the actual answer to that question, btw - does anyone?)