Special Finance APR Rates Released for Maverick

[Spartan_J]

They have a little, in that most dealer finance departments shop for the best rate they can mark up... Which is why you need your own financing option in hand.

That is true...but this special financing offer is from Ford Motor Credit. They won't be shopping for 0% from the local Credit Union.

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[RobBot]

That's not true, you have 5 days after a hard inquiry, which you will have to do to get a rate locked in. You need to wait until a few days before you buy to start shopping financing terms.

I was wrong, but it's also longer than what you said.

For old score systems, you have 14 days for inquiries to count as a single inquiry, but newer models allow 45 days.

source: https://www.creditkarma.com/advice/i/will-rate-shopping-hurt-my-score

It sounds like you might be talking about locking in a rate from a single lender. I'm talking about shopping rates between multiple lenders and its effect on your credit score.

 

[HarrisonFordMaverick]

I’ll likely go with credit union. Hard to beat 3% for 72 months when it comes to keeping a low monthly payment. They also have an annual Presidents Day sale with a local Ford dealer and they’ve dropped rates as low as 2.5% for 72 in the past for that. Which works well with the timeline I’m looking at a new car purchase. Anyone know if X Plan requires Ford Financing???

 

[Spartan_J]

I’ll likely go with credit union. Hard to beat 3% for 72 months when it comes to keeping a low monthly payment. They also have an annual Presidents Day sale with a local Ford dealer and they’ve dropped rates as low as 2.5% for 72 in the past for that. Which works well with the timeline I’m looking at a new car purchase. Anyone know if X Plan requires Ford Financing???

It does not.

 

[medgar]

I just spoke to my dealer.
I was told that we can lock in the rates now until truck arrives and any rebates would still be valid at time of delivery. Not sure how true that is but if so a no brainer to lock in the low apr now.

It is probably true. Ford Credit isn't a bank it is Ford. They are using their own money to offer the loan. They aren't "borrowing" the money from the Feds and paying a percentage for it. Honda and Toyota are the same way. Since they use their own money they have luxuries banks and finance companies don't have since they borrow money. I am in an industry that offers this type of service as a way to stand out to over competition with a B2B sales.

In most cases they make margin on the car and make better margin if you finance through them. It is a way to tether you to the company. The zero percent is a way to tether people who can afford the car outright and get them to buy their car not the competitor car. With that said, I haven't figured out why Ford offers 0% for the Maverick. Unless they know a big competitor is coming and they want to lock in the order or they are using it to make sure they hit the 125,000 Mavericks sold the first year. Then you will see commercials about fastest selling truck the fastest truck sold ever produced in the first year. Sounds like the F150 commercials. Or, they are seeing a lot of interest but little in confirmed orders and 0% is the carrot to confirm the order. Companies aren't offering incentives for the customer they are offering incentives for their bottom line or for leverage in another revenue stream.

Just my two cents but it is fun to watch and learn.

 

[2022EOW]

0.9 and 1.9 are the way to go. Of course my credit just took a hit because I paid off my student loans. Go figure... Damned if you do, damned if you don't

Credit doesn't "take a hit" when you pay down debt. Something else caused it to "take a hit"

 

[Younglefthander]

Best interest rate is no interest rate.
I’m planning to get the Lariat or Lariat LP
put $7,000 on credit card (get those points)
Plus my dealership does not charge a fee for $7000 or less on credit card. Pay the remaining balance off at closing then
pay off CC (hate finance charges). No car payment is the best. But if I had to finance, I’d go 0% and pay off within that time.
Not expecting to get a rebate with this much interest on a new production truck but anything off would be great.

 

[2022EOW]

I am incredibly mistrustful of rates offered by auto makers and dealerships. They are going to get their money somewhere in the deal, and I've never had one that could touch bank rates when they were compared objectivity.

Always work out final pricing before you talk financing, especially trade in value. Once you've done that, then talk financing, and let them know what they are competing with and that you don't want to talk about monthly payments. You want to talk terms and rates, and they need to beat your current deal. If they want to change the price you'd already negotiated after they can't compete in financing then *walk away*.

Dealers want you to make an emotional decisions about how low the payments are, and how affordable a monthly payment is. It's tempting, but don't fall for it.

In the end, if they can be competitive, that's great! I'm skeptical though.

I have used Ford Motor Credit many time over 45 years of vehicle ownership, and mistrust in the rates is just not the case. Many times, depending on the current promotions, they far exceed banks and credit unions. The key is understanding since and doing the calculations yourself to verify. This, coming from me as an accountant/auditor.

 

[2022EOW]

What can I do to increase trade in value of my car? Should I get offers from places like Carmax and Carvana?

I plan to sell mine to CarMax after I take delivery of the truck.

 

[technolithic]

Credit doesn't "take a hit" when you pay down debt. Something else caused it to "take a hit"

Not true at all. “Available credit” decreased which hit the score

 

[balucipher]

Not true at all. “Available credit” decreased which hit the score

Paying off your student loan doesn't decrease available credit on a revolving line of credit, it only pays off an outstanding debt. Available credit decreases because the balance on your credit cards increased, giving you less available credit to use.

 

[RobBot]

Paying off loans lowers the average age of your account slightly.

Length of credit history counts for ~15% of your score, so closing one account shouldn't impact things too much.

 

[martyi48]

Has anyone locked in one of these rates? The 36 month 0%, for those that can swing the higher monthly payments, seems like a no brainer. The fiance manager at my dealership where I ordered the Maverick won't get back with me. Clearly, they don't want to do this since when the truck arrives they will be able to get you to finance with options that will make them money.

 

[Catmandu]

I wish Ford Canada would drop theirs! Currently 4.49% for 24/36/48 My dealer said financing doesn't have to be written up until later (ie. when it actually arrives and the full amount is due). Hopefully a lower rate will appear between now and then...

 

[2022EOW]

Not true at all. “Available credit” decreased which hit the score

Available credit goes up when you pay down debt! You’re thinking backwards. Paying off a loan doesn’t take away from your available credit, closing a credit card account does. I think I know credit, I’ve been an accountant for decades and my current score is 820+

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