Good rates on short term loans will cause them to be paid of quicker, and therefore be in the black on the loan quicker. Someone who owes less on a car than it is worth is more likely to trade it in because they feel like they have positive equity, even though they lost a buttload of money. Its all perspective and marketing.

 

I purchased in September.

I had 1.79 (36 months) or 2.19 (48 or 60 months) approved from NFCU.

the dealer got me 1.74 from Wells Fargo.

 

Ned- oh I get that. But why the disparity between the two different truck chassis? Ford is upfront with terms on most of their cars and F150, but not F250.

 

With a score that hovers near 800 most of the time I was at 4.5x% on the loan for my 2020. This time around my local bank was at 3.99%. I told the dealer if they had someone that could beat that then go for it. Ended up at 2.84% plus I shortened the original term of the loan by six months compared to the previous loan and dropped the payment $152 a month. Ford Credit was never spoken of by either the dealer or myself.
I always tacked $100-$150 a month extra into the old payment, so doing that on the new loan will knock it down even faster. I've never really been upside down on a truck and starting out with a good loan to value figure on this one, combined with paying extra each month will put me in a very good spot in fairly short order.

 

Local bank was at 4%?! Dang thats high. I would expect that from Ford, but not a local bank. I can get 1.7% last time I checked with mine.

Glad you found someone lower!

 

Nice rate. Pretty much every time I buy I check some local sources and then tell the dealer if they can beat it to go ahead. So much easier than running around place to place to get the ducks in a row. One stop shopping. If they get a cut of the financing, so be it. I'm OK with it as long as they're saving me money too.
I might have been able to do better at a credit union but I don't belong to one. My hometown bank has offices in many small villages in our county, including my town. Personal service is literally a half mile from my house when I need it. And they've always been very attentive and fix any issues right away. I can walk in unannounced or with no appointment and speak to the branch manager most any time. But just because the service is wonderful doesn't mean I'll borrow from them to my checkbook's detriment.
I haven't checked in quite some time but Ford always seemed to be 6.9 - 7.9%. That's out of the question unless there's a big incentive. And then get a lower rate loan and pay them off immediately.

 

As another data point...

At the beginning of Dec '21, I joined a local credit union in upstate NY to get 1.25% for 60mo. w/ excellent credit. Rate includes .25% discount for new members. They finance > MSRP, so I put $0 down.

 

How far upstate? I'm Watertown area.

 

Near Albany

 

Heck of a rate you found.

 

That and the current inflation environment is why I took the max amount.

BTW they still are offering it, but I doubt it covers your area (https://www.tctfcu.org/member-groups)

 

In TX and just got 2.1% on 72mths from Texans CU. Pretty happy with that and am contemplating investing the other portion to see if I can make some money while drawing payments from it, never know with the market right now tho haha.

 

Our credit union had good rates in the low 2%'s, but they have a $50k loan restriction so it was no good unless we wanted to put down a helluva lot more money than we had planned on.