refinancing a new purchase w/ford rebates...Jeff...
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refinancing a new purchase w/ford rebates...Jeff...
Hello,
The finance guy at the Ford Dealership where I bought my new truck from specifically said I could not pay-off the loan untill I have made at least three payments to Ford, otherwise I would not be allowd to keep the rebates or there would be penatlies or something. The salesman who sold me the truck said it only had to be one payment before I could pay off the loan. I've read on here (from Jeff) that you can refinance whenevr you want. So, my question is, who's pulling my leg? Thanks.
The finance guy at the Ford Dealership where I bought my new truck from specifically said I could not pay-off the loan untill I have made at least three payments to Ford, otherwise I would not be allowd to keep the rebates or there would be penatlies or something. The salesman who sold me the truck said it only had to be one payment before I could pay off the loan. I've read on here (from Jeff) that you can refinance whenevr you want. So, my question is, who's pulling my leg? Thanks.
Laughing Gas
Joined: Aug 2004
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From: P.G. VA
I WOULD NOT BE SUPRISED IF THEY TRIED TO HIT YOU WITH PENALITIES, BUT I WOULD CONTACT FORD CREDIT DIRECTLY 1-800-727-7000 OR WWW.FORDCREDIT.COM. IF ANYONE CAN TELL YOU THEY WILL.
GOOD LUCK
GOOD LUCK
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From: Tampa Bay, FL USA
On the front of our Ford Credit contracts, it states that you may pay off your loan early "without penalty." It doesn't say that you have to wait 90 days (but that might be a New York State regulation; check your contract). If you do pay off the loan BEFORE 90 days have elapsed, Ford Credit will charge back the commission they paid to the finance guy (is everything you've heard suddenly beginning to make sense?). We recommend you wait to get the first statement before paying off the loan, so that you have the account number, phone number and Ford Credit address.
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Yes, that makes sense. I actually just got a reply from FMC (20 minutes, not bad!) with my account number (i'm surprised they sent it to me in an e-mail), total payoff amount good to Aug. 27, and an address to send payoff to (Las Vegas). The e-mail said nothing about any penalties and the payoff was what it should be, not more, so it looks like i'm in the clear then, right? Sorry, I just don't need any "problems" with this. Thanks so much for your help.
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Joined: Feb 2001
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From: Conn
EJ Been there done that in June.
Dealer said wait 6 mo, I waited 2mo as my credit union did not want to chase the title around.
NO prepayment penalties, I made shure!
Hey they offered the $500.00 so I took it!
Even got a nice letter from Ford thanking me for paying promtly!
Bob
Dealer said wait 6 mo, I waited 2mo as my credit union did not want to chase the title around.
NO prepayment penalties, I made shure!
Hey they offered the $500.00 so I took it!
Even got a nice letter from Ford thanking me for paying promtly!
Bob
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Hey Jeff, Why does ford even mess with this? You know.. why cant they just give us the extra 1000 as a flat rebate, isnt it more work on ford credit to get all these refinances after a couple months.. They arent going to make any money doing this.. it seems like a big hassle for all parties since no one is going to pay FMC high interest rates.. just curious..
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I'd be willing to bet that a lot of people would rather not mess with going through multiple loan apps. and sending checks here to there. I'd bet a lot of people don't mind or don't care about paying the extra X per month just because it's easy, it's over with, and they don't have to do a thing more about it. I on the other hand, will be saving tons by doing so I'm all for it!
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Yeah, I did just to make sure. Contract sates:
"1. D. YOU MAY PREPAY. You may prepay all or part of the unpaid part of the Amount Financed at any time."
It goes on to say if you do so you must pay the earned and unpaid part of the finance charge up to the date of payoff.
A second e-mal from FMC clarified my question regarding penalties or lost rebates. They said there are no penalties and restated the payoff amount good till Aug. 27. Sounds good to me! Thanks so much for your help everyone.
"1. D. YOU MAY PREPAY. You may prepay all or part of the unpaid part of the Amount Financed at any time."
It goes on to say if you do so you must pay the earned and unpaid part of the finance charge up to the date of payoff.
A second e-mal from FMC clarified my question regarding penalties or lost rebates. They said there are no penalties and restated the payoff amount good till Aug. 27. Sounds good to me! Thanks so much for your help everyone.
Laughing Gas
Joined: Aug 2004
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From: P.G. VA
Hey Guys,just Reading All The Replys Here And It Seems To Me That The General Concensus Is That You Financed With Fmc Only To Get The Extra $1,000 Now You Are Refinancing With Another Source To Get A Better Rate. Where Are You Finding A Better Rate? In Va I Got 7.9 For 72 Mths On July 29 On My 150 Screw, I Checked All The Local Banks And Credit Unions And They All Wanted 10+% I Know Your Credit Affects Your Arp. But I Have Good Credit And I Was Quoted These Rates Over The Phone Without A Credit Report. Don't You Think That They Would Quote The Lowest Possible Rates Just To Get Me In The Door. In My Experience I Have Always Found Interest Rates Better With The Manufacturer. If I Am Fooled Please Tell Me Where To Look!
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I think the killer here is the 72 months, the local banks have an equal or better rate than Ford for a finance period of 60 months or less. Banks don't like 72 months, most people are upside down until mid way through the 4th year and the last thing they want is a parking lot full of used vehicles. In February, at the time there were no Ford finance rebates but they were at 5.9 or 6.9% on trucks - cars were less. Local banks didn't care whether it was a truck or car and at the time I received a 60 month term at 4.9%. My kids were quoted 10% plus at local banks but those were first new car purchases so I cosigned to get a rate at slightly over 5% in March/April for 60 months. Ford was a little less than the bank without my signature but couldn't see them paying an extra $50-60 bucks a month. Ford is in the car/truck business, not the finance and only do it to sell cars but I don't think anyone will disagree that there making bucks in finance too.
Laughing Gas
Joined: Aug 2004
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From: P.G. VA
Your Right, Fmc Is Making A Ton On Financing If Not They Would Be Doing It. I Know The 72 Months Throws A Wrench In The Deal But Even At 60 Months The Banks Weren't Even In The Same League As Ford Credit.
Oh Well If Your Gonna Play You Gotta Pay And I Love My New 150. Just Real Worried I'm Gonna Get A Ticket, Every Time I Look At The Spedo I'm Doing 60 +. Man This Thing Is Smooth And Quiet.
Oh Well If Your Gonna Play You Gotta Pay And I Love My New 150. Just Real Worried I'm Gonna Get A Ticket, Every Time I Look At The Spedo I'm Doing 60 +. Man This Thing Is Smooth And Quiet.