Financing thru Ford? Early payoff fee.
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Financing thru Ford? Early payoff fee.
Does anyone know if there is an early payoff fee when finacning thru Ford? I intend to finance thru them to get the rebates but would like to refinance thru my own credit union with a lower intrest rate. Thanks everybody hopefully close the deal tommorrow.
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Originally Posted by ExplorerSp0084
Does anyone know if there is an early payoff fee when finacning thru Ford? I intend to finance thru them to get the rebates but would like to refinance thru my own credit union with a lower intrest rate. Thanks everybody hopefully close the deal tommorrow.
New User
Joined: Oct 2003
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I just purchased a 2004 Supercrew XLT 4X4 on 9-3-04 and recieved a $1500 rebate for financing through Ford Credit on top of the $2500 on the truck itself. As far as I know there is no penalty for paying loan off but I will admit I didn't read all the fine print. One dealer (not the one I bought truck from) told me to finance through Ford and then pay it off just so I could get rebate.
Elder User
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From: Chesterfield, Mi
It is a simple interest loan and there is no early pay off fee. It is stated right in your paperwork. We bought our truck about a month ago and once our home equity increase goes through (another week or 2) we are paying the truck off so we can write off the interest. I am 110% positive there is no fee because my wife was a freak about it and I made the finance guy circle and highlight it on my paper work.
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What rates are people getting on these deals where they give 1500 cash if financing with Ford? Are they above market rates, it seems like too good of a deal.
Lardman, Im sure you know this, but just in case, if you have a longer term home equity loan than a typical car loan, 10 or more years lets say, you'll end up paying a fortune in interest thus wiping out any savings by writing it off.
Lardman, Im sure you know this, but just in case, if you have a longer term home equity loan than a typical car loan, 10 or more years lets say, you'll end up paying a fortune in interest thus wiping out any savings by writing it off.
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New User
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I originally financed mine thru ford credit, but ended up re contracting thru my credit union for a lower rate but lost 1500 bucks in rebates. It was okay because they gave me a great trade allowance. It kind of made up for it. Id reccommend going thru a credit union.
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My understanding...according to my finance guy is the following:
There is no early pay off fee....however...if you take the additional $1000 cash for financing through ford you must keep the loan for 90 days or they can attempt to recoup some of that cash rebate. That isn't an early payoff fee.
I've never checked my paperwork for it, I'll look but he wasn't the first finance guy to tell me that.
If you don't want to risk dealing with them....wait until day 91 and pay it off.
There is no early pay off fee....however...if you take the additional $1000 cash for financing through ford you must keep the loan for 90 days or they can attempt to recoup some of that cash rebate. That isn't an early payoff fee.
I've never checked my paperwork for it, I'll look but he wasn't the first finance guy to tell me that.
If you don't want to risk dealing with them....wait until day 91 and pay it off.
Elder User
Joined: Jun 2004
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From: Chesterfield, Mi
bc, We did consider that, hope to pay it off early. Our equity line has 8 yrs left and the rate is 4.5%. We are at 5.9% through FMCredit and my Credit union was 5.5. Hopefully it doesn't increase much.
Vader, wasn't told that. Hopefully it is not true. I'll call my finance guy and ask.
Vader, wasn't told that. Hopefully it is not true. I'll call my finance guy and ask.
Junior User
Joined: Aug 2004
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From: Virginia, USA
No fee. I asked this when I financed through Ford Motor Creidt. It's in my contract with them. I truly only financed to get the rebate. I will be paying it off 3 months after the purchase. 3 months helps the dealer somehow so i agreed to wait til then.
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Joined: Aug 2004
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From: Bothell, WA
Originally Posted by vader716
My understanding...according to my finance guy is the following:
There is no early pay off fee....however...if you take the additional $1000 cash for financing through ford you must keep the loan for 90 days or they can attempt to recoup some of that cash rebate. That isn't an early payoff fee.
I've never checked my paperwork for it, I'll look but he wasn't the first finance guy to tell me that.
If you don't want to risk dealing with them....wait until day 91 and pay it off.
There is no early pay off fee....however...if you take the additional $1000 cash for financing through ford you must keep the loan for 90 days or they can attempt to recoup some of that cash rebate. That isn't an early payoff fee.
I've never checked my paperwork for it, I'll look but he wasn't the first finance guy to tell me that.
If you don't want to risk dealing with them....wait until day 91 and pay it off.
I bought my F150 2 weeks ago- Did the ford financing to get the $1500 off (at 9.2% interest GRRR) - I refied it last week through my credit union for 4.95%.
I did Read all the small print ahead of time- And despite their talk about waiting 90 days- there is nothing in print on the finance docs. In fact- on the final docs- it doesn't even list what the rebates were- it just totals them and puts them in the "Downpayment" field. I had $5k worth of rebates added up- but they were not broken down into ammounts or specific deals, just the total.
I've talked to several people about this, and they all say there is no "coming after you" for that rebate back. They just pressure you to keep it for 90 days because they get a kickback that way.
Last edited by topdowncrusin67; Sep 16, 2004 at 12:56 PM.
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From: Tampa Bay, FL USA
You can pay off your loan anytime you like, with no pre-payment penalty. Also, they can't take back a rebate once they've given it to you. All you'll pay is the interest FMCC has earned from the date of the contract to the payoff date. topdowncruisin67 is right: after 90 days, the dealer won't get charged-back the commission they earned for writing the contract, which is why they tell you to wait. All we tell our customers is to wait till you've received your first statement so that you have a phone number to call, and an account number to credit your check to.