I have a question. Looking at buying a truck. I understand that you have the choice of the cash incentive or the low rate financing. My question is if you take the low rate of financing, does the dealer get the rebate? If so, then it increases your ability to lower the negotiating price that much more because they can take more money off the msrp because of the rebate.

 

I believe there is an incentive to the dealer if you finance through FMCC. But I don't think there is any extra kickback to the dealer if you go with 0% or low rate financing instead of the rebate. Look at it this way: if FMCC gives you a 0% rate, they're not making any money on finance charges. So Ford needs the profit to come from the sale price of the vehicle. You might want to consider taking the rebates, financing through FMCC at the higher rate to get the "bonus cash" incentive, then shop around for a lower rate on a loan from a credit union or competitive bank. Use the new loan to pay off the FMCC loan and keep the bonus cash $$. Many FTE folks have done this. The only hassle is the extra paperwork to change the lien holder for the title of the vehicle.

 

The rebate or low rate is a consumer incentive- it has nothing to do with the dealer. Instead of the rebate going to you, it goes to Ford Credit to subsidize the low rate. So no, the dealer doesn't get the rebate. Now, the dealer does make money on financing when they arrange it, but it has nothing to do with the rebate. Two separate transactions.

 

There are combinations too. You have to look at the chart carefully...

I recently got an 05 Explorer XLT Sport 4X4 for $10,500 off the sticker. $5000 of it was rebates, $5500 of it was the dealer.

This $36,000 truck was out of my affordability range until this happened.

Part of the rebate came from financing with Ford. I forget how much of it, but I got 6.2% (72 months) with Ford and the extra Rebate Money.

This was on March 25th.

-Larry