Ford Credit Question
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Senior User
Joined: Dec 2003
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Ford Credit Question
I purchased an 06 this week and financed part of the purchase price through ford motor credit for 36 months. I got an additional $1000 off due to financing through ford.
I plan on selling my 02 and paying off the balance or re-finance. Local rate is about 1.5% less than ford. (Not a big difference) The dealer stated that I could not refinance for six months. Is this correct? What would ford credit do if I paid off the balance or refinanced before six months?
I plan on selling my 02 and paying off the balance or re-finance. Local rate is about 1.5% less than ford. (Not a big difference) The dealer stated that I could not refinance for six months. Is this correct? What would ford credit do if I paid off the balance or refinanced before six months?
Lead Driver
Joined: Apr 2002
Posts: 7,746
Likes: 7
From: Tampa Bay, FL USA
Although credit laws can vary from state to state, it must be spelled out in your contract if you can or cannot pay it off early. In most cases, you can pay it off as soon as you want. Paying it off within the first 6 months does reduce the commission Ford Credit pays to some of its dealers for writing contracts. Hmmmmm- could THIS be why they told you not to pay it off before 6 months had passed? Naaah........
Elder User
Joined: Mar 2005
Posts: 735
Likes: 1
From: SW Iowa
I just bought a Crown Vic and used Ford Credit for the $1000 rebate too. But 6 days later I had a check in the mail to Ford Credit to pay off their note. I did it over the phone with FC, as I was ahead of all their paperwork. They gave me the amount to write the check to pay up the interest till the end of the month, and said they would rebate me the difference in interest from when they process the check vs the end of the month interest payment I made. We'll see on that, as they figure that interest daily! The FC address by the way is in Las Vegas, Nevada~~.
Posting Guru
Joined: Dec 2003
Posts: 1,157
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From: Wichita, KS
I've never had a loan through Ford Credit that charged a penalty for early payoff. Come to think of it, I don't think I've had any loan with an early payoff penalty. Parents mentioned something about it on a couple of Chryslers they bought in '86-87 but not sure if they had one, or just said something about it. Check your contract to be sure.
Freshman User
Joined: Nov 2005
Posts: 29
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like everyone else the key point is to check your contract. here in our area ford does not charge you for paying off the loan early. i just had a customer last night that hadnt received his home equity line yet, but wanted to take the truck. i told him to simply do ford financing, and when he gets his check pay it off. we just had a similar question like this in another thread. take the $ and pay it off, but always contact fmc to double check!
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New User
Joined: Nov 2005
Posts: 22
Likes: 0
I am running into a similiar issue here. My credit is strong (770 average) and Ford is telling me that the best interest rate they can do right now is 6.75%. I have already secured financing elsewhere, just in case, that is substantially below this rate. As some of you have indicated, go through Ford and then refinance the loan. My low interest loan is through Capital One, and the check has to be made out to the dealership. So, if I accept the Ford loan then won't I be writing the Capital One check out to the Ford Credit Company and not the dealership? The refinance rate offered through Capital One is higher than the 6.75% Ford is offering. Ideas?
Griz
Griz
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Lead Driver
Joined: Apr 2002
Posts: 7,746
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From: Tampa Bay, FL USA
1) Ford Credit's rates are always higher than everyone else's (how do you think they pay for those rebates?).
2) Be VERY careful with on-line financing sources. Most of them want to give you a sight draft, which is NOT a check or bank draft, and my dealership will not accept them. Sight drafts have conditions attached which make them invalid if they're not performed to that bank's satisfaction. You wind up with a truck, I wind up with a worthless piece of paper. We got burned once, and it won't happen again, so VAN BORTEL FORD DOES NOT ACCEPT SIGHT DRAFTS.
2) Be VERY careful with on-line financing sources. Most of them want to give you a sight draft, which is NOT a check or bank draft, and my dealership will not accept them. Sight drafts have conditions attached which make them invalid if they're not performed to that bank's satisfaction. You wind up with a truck, I wind up with a worthless piece of paper. We got burned once, and it won't happen again, so VAN BORTEL FORD DOES NOT ACCEPT SIGHT DRAFTS.
Laughing Gas
Joined: Jun 2005
Posts: 939
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Originally Posted by weadjust
I purchased an 06 this week and financed part of the purchase price through ford motor credit for 36 months. I got an additional $1000 off due to financing through ford.