What financing APR rates are you seeing?

[MakinDoForNow]

So here's the thing, there is nothing that says the finance manager cant lie to you before the final paperwork is done. Its a huge scam. So the dealership has what is called a buy rate - the quote they get from the lender for providing credit for your loan then the stealership will increase the rate - thats called the contract rate. On top of that , certain lenders will have financial bonuses for finance folks to use them. So in other words they tell you ohhhh Ford Credit offered you 7% which isnt really the truth - the only instance when you can trust a rate is when Ford Credit has a set rate and you can hold them to it. The finance manager isnt trying to "help" you get the best rate, he is trying to extract as money as possible from you Get your financing before you go.

Do not forget to look for "prepayment fees". Some lenders don't charge one if you pay off early but some do. Some require one if you pay off before six months or one year or more. Some states allow up to 2% of balance to be charged some allow more. If you have loan call lender and ask how much can you pay ahead without penalty. Better than getting surprised.
Edit:. Some lenders require this to be reimbursed for wire transfer costs and/or the commission/referral fee they paid dealer for getting them the loan. Etc.

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[Gullzway]

Went through this today. Long story but maybe it'll help.

My Bronco Sport will arrive at my dealership in the next few days. Ive been asking for the purchase agreement for a couple weeks now so I can get pre-approval from my credit union. Never would give it to me, just kept saying they can do it through my bank from their office. I know they can, I just didn't want them padding the interest rate for themselves or anything. Checked with my credit union yesterday and they are at 4.74% currently. Asked my salesman yesterday what Ford financing was at and was told the best they can do is 4.99% and there's no way any credit union could come near that. Asked if there are any financing incentives, rebates, credits, etc. And was told there was not.

Got bored last night and looked on my dealers website and was eyeballing my Bronco listed there in their stock. Scrolled down a little further and noticed it listed a $500 and $1000 incentives.

So, go into dealer today to either deal with financing there, or get my purchase agreement so I can go to my bank. My salesman wasn't there so I ended up with a higher up salesman. Explained what I wanted and of course they ask what payments you want. Told him let's see what interest rates are and that'll determine what payments are. Told him to find out interest rates and I'll apply to that bank only. Days they go through ICCU which always has the best rates. My Brother bought a new Prius two days ago and they financed through them at 6.7%. both of us have about a 750 credit score.

Anyways, told him my bank is at 4.74% currently. Asked how long ago that quote was from because rates have risen significantly lately. Told him it was yesterday afternoon. He came back twice to make sure I was positive about that rate. Told him if I couldn't get that rate or less I'd just pay cash for it and not mess with financing. (A total bluff). He came back and said they could get that rate through my bank. That's when I asked about those two cash offers from Ford listed on their website for my vehicle. He said there wasn't any so I showed him on their website on my phone. He disappeared for a few minutes and comes back saying the $500 one only counts for a lease. Then he says I can take the $1000 off the price but he "just found out" that I was rate locked to September 21st when I ordered and I'd have to give that up to get the $1000 discount. The rate he got me through Ford financing was 2.9% for 60 months.

Bottom line, do your research, go in prepared, and don't be afraid to say no to them when necessary. They're used to people wondering if they CAN get financing and just going along with whatever they are told.

That was a lot to go through for not knowing 2022 orders were finance protected.

 

[Sleeper 7]

How do their rates compare though? Personal loans are typically higher rates.

https://www.lightstream.com/new-car-loan

 

[Yinzrmav]

Definitely try to get pre-approved through a bank or credit union beforehand. Just got my maverick last Saturday and got pre-approval with Navy Fed @ 5.04% / 72 months. Dealer was not able to beat this, rates were higher, they even tried a credit union we paid a vehicle off with 2 year’s ago and their rate was 7%.

 

[IdahoDirtFarmer]

That was a lot to go through for not knowing 2022 orders were finance protected.

I'd heard they were but they swore it wasn't. It's a dealership, sometimes you gotta play their BS games to get them to do what they're supposed to do.

 

[mitchwkr]

On Dec. 21st, my local credit union give me a rate of 3.24 when I told her I had a truck coming. I just checked their website and the lowest one I say was 3.99. I don't know how long the 3.24 quote is good for, but it doesn't help when Ford keeps pushing out my delivery date. When I spoke to my Ford Salesperson months ago, he said they were very worried going into 2023 that the Ford rate was really going to hurt sales. At that time the Ford rate was in the 6.00 range.

 

[hellokitty1984]

I got 5.94% for 85 months. I maxed out the months until this financing rate situation gets ahold of itself. I could save $10 a month at most by going 60 months, but pay up front like $100 more per month. Or I can just cut out costs on things that don’t matter, like a single fast food meal and call it a wash.

 

[Tomstruck]

Ordered my Maverick 9-16-21 , picked it up 11-10-22. Got 1.9% thru whoever my dealer goes thru. Also got A plan discount. Love the truck. Southgate Ford is a great dealership. Been buying from same salesman for over 30 years.

 

[baldboy]

Here's my advice - get your loan together before going to pick up a truck. Unless you have a guaranteed rate for Ford Credit the scumbag finance manager will lie, add on percentage points, steer you to a company that gives them the biggest kickback. My credit rating is 850 and I literally had a credit manager two days ago tell me Ford Credit ( I told him I wanted to use them ) would only give me 8.5% rate but mechanic's bank would give me 7.5. I had traveled out of state to pick up a Maverick so I didn't have many options. When I receive the registration I'm refinancing the loan for 4.0% I'm mad at myself for not getting a loan before going. A good rate with very good credit should be somewhere in the 5% range.

Absolutly go with a federal/credit union !

 

[BigShoots920]

Like David @Redneck Garage said, get your financing in line beforehand. You'll usually find your best rates from a credit union. My truck is just awaiting a car hauler to bring it to the dealer. I already have a pre-approval on my loan, at a great rate, from my local credit union.

As soon as I had a build date I started looking for who could freeze my rates the longest. I found a Credit Union in town that could freeze 4%(down to 3.25% with bonuses) for 90 days so I got pre-approved there (my credit rating is about 810). Their current rate is 4.75% but I took delivery of my truck Wednesday and basically told them straight out I have 3.25% for 60 months pre-approved so you can run your numbers but it makes no sense for me to even entertain anything higher. They just kept inquiring if that was my real rate and finally said we couldn't come even close to that. So I had to wait an extra day for delivery but I did get that financing at 3.25% for 60 months and had my truck the next day. So I would check around to see who can hold the longest for you and get a pre-approval then. My motivation at the time was the feds had just raised their rates again.

 

[AntD]

I thought our rate was supposed to be protected from when we placed order. For example, I placed order 9/19/22 and have my order confirmation sheet. I thought dealer was supposed to pull up rates in system from that date. Did this change?

 

[Michigan Bill]

As soon as I had a build date I started looking for who could freeze my rates the longest. I found a Credit Union in town that could freeze 4%(down to 3.25% with bonuses) for 90 days so I got pre-approved there (my credit rating is about 810). Their current rate is 4.75% but I took delivery of my truck Wednesday and basically told them straight out I have 3.25% for 60 months pre-approved so you can run your numbers but it makes no sense for me to even entertain anything higher. They just kept inquiring if that was my real rate and finally said we couldn't come even close to that. So I had to wait an extra day for delivery but I did get that financing at 3.25% for 60 months and had my truck the next day. So I would check around to see who can hold the longest for you and get a pre-approval then. My motivation at the time was the feds had just raised their rates again.

The finance guy is gonna freak when he sees mine.

 

[BigShoots920]

I thought our rate was supposed to be protected from when we placed order. For example, I placed order 9/19/22 and have my order confirmation sheet. I thought dealer was supposed to pull up rates in system from that date. Did this change?

I inquired about freezing rates through ford shortly after I ordered and they told me that it had to be done at time of the order so I was out of luck since it was in the system already. So unless you talked to the finance department when you were putting in your order, I don't believe you can. Or at least that is what I was told.

 

[AntD]

I inquired about freezing rates through ford shortly after I ordered and they told me that it had to be done at time of the order so I was out of luck since it was in the system already. So unless you talked to the finance department when you were putting in your order, I don't believe you can. Or at least that is what I was told.

Wow. They really are trying to screw people over. I believe Tim Bartz said it is as simple as them clicking a button in their system and rates will come up that match date of initial order after your car arrives at dealer.

 

[tpcroozer]

Check Bankrate.com and get approval before you go to dealership. They will often match lowest rate. I will be looking for 2.99% or less with 700+ credit score.

https://www.bankrate.com/loans/auto-loans/rates/

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