Shocking discovery with Granger Ford ESP?
Thread Starter
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Laughing Gas
Joined: Mar 2018
Posts: 1,146
Likes: 309
Shocking discovery with Granger Ford ESP?
Wow, I hope I am wrong here, but just went to get an ESP from Granger Ford, Planned to use the payments option. When I selected it, they added a 10% "admin" fee. Well, let's face it, that is basically an interest rate. So, I decided to see what the actual rate was using ChatGPT.
The purchase price of the plan is $2065. They require 20% down, so you aren't actually paying the full amount over 18 months, you are paying $1652 with a down payment of $413. The payoff period is 18 months and the installment is monthly.
What's that work out to according to ChatGPT? A whooping 21% interest (or as they put it, admin) fee.
Holy cow, this is two fingers Jimmy rates. @GrangerFord what say you?
Note: I've checked Flood Ford and their price is $2065 with no "admin" fee. If there is an "admin" fee for the monthly payments and not for the single pay, then it is interest by very definition. Are you charging an admin fee for people who pay all at once? If not, you need to disclose this. Looking forward to your response. I hope there is a reasonable explanation here. If this is a 3rd party charging these fees, then they are not doing anything to help your reputation.
The purchase price of the plan is $2065. They require 20% down, so you aren't actually paying the full amount over 18 months, you are paying $1652 with a down payment of $413. The payoff period is 18 months and the installment is monthly.
What's that work out to according to ChatGPT? A whooping 21% interest (or as they put it, admin) fee.
Holy cow, this is two fingers Jimmy rates. @GrangerFord what say you?
Note: I've checked Flood Ford and their price is $2065 with no "admin" fee. If there is an "admin" fee for the monthly payments and not for the single pay, then it is interest by very definition. Are you charging an admin fee for people who pay all at once? If not, you need to disclose this. Looking forward to your response. I hope there is a reasonable explanation here. If this is a 3rd party charging these fees, then they are not doing anything to help your reputation.
Hotshot
Joined: Jul 2013
Posts: 14,263
Likes: 2,185
More shocking is I paid the 7yr/125k in full at the time of vehicle purchase….when ever I try to use the 7yr/125k warranty there are never any appointments available for 3 months or more. I guess these plans don’t pay stealerships much…else they would be all over them.
Lead Driver
Joined: Dec 2020
Posts: 8,639
Likes: 2,433
I purchased from a dealer out of Tennessee that offered 0% interest for up to 24 months with no additional fee and no change in plan pricing. They did require a certain % down (20%?). At the time, their ESP pricing was exactly the same as Flood Ford. The only option for making payments through Flood back then was to use PayPal, which offered 6 months 0%. I remember when Granger announced their "0%" finance option and thinking to myself, with the admin fee that's not really 0%.
Mountain Pass
Joined: Jan 2018
Posts: 179
Likes: 17
From: Salt Lake City
I used Lombard Ford out of CT for my Ford factory ESP. I tried Granger and a few others, they would not sell me a warranty as my factory warranty had expired (drivetrain warranty still was in force).
https://www.lombardfordwarrantys.com/?
Lombard was able to sell me an extended factory warranty at a very competitive price.
Two things:
Overall super happy with Lombard Ford, where Granger and the TN dealer said no, Lombard found a way to yes
https://www.lombardfordwarrantys.com/?
Lombard was able to sell me an extended factory warranty at a very competitive price.
Two things:
- I had to have the truck inspected, Lombard Ford hired the inspector, I had to pay (I think about $100 USD).
- Although Lombard Ford is in CT, I lived in Seattle area, but they found an inspector in Seattle
- The inspection was pretty thorough, lots of pictures
- I had to pay 50 percent down, and then remaining balance paid over 24 months zero interest
Overall super happy with Lombard Ford, where Granger and the TN dealer said no, Lombard found a way to yes
Lead Driver
Joined: Dec 2020
Posts: 8,639
Likes: 2,433
I used Lombard Ford out of CT for my Ford factory ESP. I tried Granger and a few others, they would not sell me a warranty as my factory warranty had expired (drivetrain warranty still was in force).
https://www.lombardfordwarrantys.com/?
Lombard was able to sell me an extended factory warranty at a very competitive price.
Two things:
Overall super happy with Lombard Ford, where Granger and the TN dealer said no, Lombard found a way to yes
https://www.lombardfordwarrantys.com/?
Lombard was able to sell me an extended factory warranty at a very competitive price.
Two things:
- I had to have the truck inspected, Lombard Ford hired the inspector, I had to pay (I think about $100 USD).
- Although Lombard Ford is in CT, I lived in Seattle area, but they found an inspector in Seattle
- The inspection was pretty thorough, lots of pictures
- I had to pay 50 percent down, and then remaining balance paid over 24 months zero interest
Overall super happy with Lombard Ford, where Granger and the TN dealer said no, Lombard found a way to yes
Thread Starter
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Laughing Gas
Joined: Mar 2018
Posts: 1,146
Likes: 309
Trending Topics
Lead Driver
Joined: Dec 2020
Posts: 8,639
Likes: 2,433
I think the cut off for the new vehicle ESP's is something like 41 months 41k miles. I could be off a little on that. I was going to PM you that dealers info but it says your inbox is full.
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Tuned
Joined: Nov 2019
Posts: 303
Likes: 208
More shocking is I paid the 7yr/125k in full at the time of vehicle purchase….when ever I try to use the 7yr/125k warranty there are never any appointments available for 3 months or more. I guess these plans don’t pay stealerships much…else they would be all over them.
Is this "go to the back of the line" treatment with these ESP plans common out there? Was it fully explained to customers before purchase?
Mountain Pass
Joined: Sep 2016
Posts: 109
Likes: 30
From: Tucson, Arizona
The calculations you acquired are incorrect. If you really want to count the admin fee as interest (it's not) then
here's how to calculate the interest rate:
$2065 - $413 (20% down) = $1652 (principal in your scenario)
Admin fee = $1652 * 10% = $165.20
R = I / (P * T)
Substitute the values into the formula:
R = $165.20 / ($1652 * 1.5 years)
R = $165.20 / $2478
R = 0.06666.
To express this as a percentage, multiply by 100:
R ≈ 0.0666 * 100 = 6.67%
here's how to calculate the interest rate:
$2065 - $413 (20% down) = $1652 (principal in your scenario)
Admin fee = $1652 * 10% = $165.20
- Principal (P): $1652
- (Admin Fee) Interest (I): $165.20
- Time (T): 1.5 years
R = I / (P * T)
Substitute the values into the formula:
R = $165.20 / ($1652 * 1.5 years)
R = $165.20 / $2478
R = 0.06666.
To express this as a percentage, multiply by 100:
R ≈ 0.0666 * 100 = 6.67%
Thread Starter
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Laughing Gas
Joined: Mar 2018
Posts: 1,146
Likes: 309
Thanks. I am at 35 months and a few weeks and 33k miles. So I need to make a decision ASAP. I'll probably go with Flood and just pay the full amount al at once if I can't find a zero interest (NO ADMIN FEE) dealer.
I cleared my inbox. Sorry about that! thanks
I cleared my inbox. Sorry about that! thanks
More Turbo
Joined: Mar 2024
Posts: 546
Likes: 453
I've had no issues with using the Grainger ESP at my dealership. I'm not sure they would even know an ESP is involved until they get the truck in and diagnose any issues so confused on why people are getting pushed off over it...
Thread Starter
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Laughing Gas
Joined: Mar 2018
Posts: 1,146
Likes: 309
lol. it's not simple interest if you pay in installments. Go back and redo you numbers.
And the admin fee is 10% of the total, so go back and redo that as well.
And when you do that, you'll figure out that the rate is 21%.
If you don't know the difference between simple interest and amortized, then you shouldn't be posting.
And the admin fee is 10% of the total, so go back and redo that as well.
And when you do that, you'll figure out that the rate is 21%.
If you don't know the difference between simple interest and amortized, then you shouldn't be posting.
Fleet Mechanic
Joined: Jul 2019
Posts: 1,648
Likes: 694
lol. it's not simple interest if you pay in installments. Go back and redo you numbers.
And the admin fee is 10% of the total, so go back and redo that as well.
And when you do that, you'll figure out that the rate is 21%.
If you don't know the difference between simple interest and amortized, then you shouldn't be posting.
And the admin fee is 10% of the total, so go back and redo that as well.
And when you do that, you'll figure out that the rate is 21%.
If you don't know the difference between simple interest and amortized, then you shouldn't be posting.