So if I'm hearing everyone correctly, you are saying that I only have to make 1 payment and then I can refi ? The dealer told me that if I didn't keep it for at least 3 pymts they would take back the thousand $ rebate back, is that B.S.? I would hate to refi and then find out they want their money back.

 

I was told pay it off in 3 payments, but I think they told me pay it off because they knew I was going for an all cash deal. I take from that is that they want 3 months to get that interest, 1 month isn't going to be worth in my mind. I would say it's 3 months, but I didn't take that option, so I don't know for sure.

Although, in the end your not getting a thousand off. At best, if you were to pay it all off and only dealt with the 3 months at their finance rate, your probably looking at 5-600 in reality and that's if you paid it all off. That's rough math by the way, that's not exact math.

Even if you refinance and get a lower rate your going to lose what's left in interest payments to whoever you refinance with. Your really not getting anything out of it other then what's in your head. Maybe that's enough I doubt know.

 

I only financed 11k on the truck, so the interest amount for 3 months isn't a whole lot, but 1 month is better still.

 

Keep in mind that the rebate offers may change on April 5th. I intend to pay cash for my truck, but maybe I'll borrow $10,000 from Ford to get the $1000 rebate, and pay it off in a month if that's permitted under the terms of the loan.

 

The dealer gets a small kickback when you finance through them...generally $100-$150 if they give you the money at their buy rate. I wouldn't be at all surprised if 8.9%APR for 60 months is the buy rate through FMCC. The dealer generally will be charged back that small stipend if the loan is paid off before the third payment. You will NOT lose the $1000 FMCC rebate if you pay the loan off at the first payment. You can pay off an auto loan at anytime and only pay interest on the outstanding principal balance. I am unaware of any state that allows a pre-payment penalty.

 

It would depend on the terms of the contract. I don't know how Ford Financing words their contract, but it would depend on how it is worded. I doubt it would be a pre-payment penalty, but there might be a min. paymant schedule addendum in there. Something that states you'll do their financing for 3 months then it can be revisited or refinanced to another company etc.

 

When I bought my '04, I used Ford's money then I refinanced before the first payment was due. The company that I refinanced with offered me total loss insurance (gap) for free and a lower rate. Score!

In my mind, if a person can afford a cash deal, then go for it. Hold your check book out and offer them $1000 under invoice plus incentives then turn and head for the door. They will bring you back, I'm certain of it.

 

Wow, those rates are terrible.
Just financed a 2010 F150 SCrew XLT for 0% @ 36 mo.
Financed a 2009 F150 SCrew XLT for 1.9% @ 60mo.

Both rates still included quite a bit of customer cash/rebate.

 

I talked with the salesman and he told me that if I paid it off before 3 months Ford wanted their $1000 rebate back, I asked about sending three payments all at once and he still said no good, it has to be in force for 3 full months. Does anyone know for certain if that is BS or if that's the truth? Thanks, Mike

 

Mike...that is pure BS!!!

Tim...the $1000 comes from FMCC...not the dealer. If the dealer is willing to sell the vehicle and give up most of his hold back...that's his business. The $1000 FMCC Bonus Cash is still there for the taking. Next time you want to leave $1000 on the table...please send me a check!!!

 

I wasn't trying to tie the FMCC $1000 rebate to my statement. I guess I didn't word my post correctly. I'm fully aware that the dealer has nothing to do with the rebate and that it's issued by FMCC. But, the fella that afford to pay cash for a truck doesn't necessarily care where the $1000 comes from as long as it's produced by someone. So as I said, hold out your checkbook and see how motivated the dealer is and fore go the stupid contract.

I'd have to refinance my house to do a cash deal. While that's not a very bright move it sure would feel good to go into a Ford dealer with enough money to at your fingertips to push those buttons.

 

X2!

It'd be really fun to get 5 or 6 guys to all go in at once (or one right after the other) with 'cash' (and no intention of buying).

Can you say '***** and get it' at the stealership?

 

Wouldn't that be a hoot!!! My buddy at work and I were planning on buy new trucks next year at about the same time but I'm probably going to bow out gracefully. I'm going to use fuel prices as my excuse as I'm not certain if I want to pump $200 per month worth of gas just to get to work and back. That's a compact car payment in itself. As good as my '88 is running, I'd have to look in a mirror and justify that purchase. Of course, she is old and that could all change.

 

A year ago I took the $1K financing deal late on a Friday. I paid off the loan early the following Monday. I wouldn't even make one payment...

 

I'm going in Thursday to order a 2010 KR crew, loaded; the salesman told me I get the 1K if I finance 7K for 1 month. I hope he is correct; we shall see. List is $46,505, I pay 36,635 plus tax, tag, title and $378 dealer paper work fee. That included the 1K discount for financing. Interest on 7K for a month @ 8% is about $47. Lets hope he is correct. Also received a letter from Ford giving an additional 1K due to turning a leased Tundra back to Toyota. Everything is in writing; all I have to do is sign the order and give a deposit. I shall let you know tomorrow how it works out.