Financing with Ford Company

[Sage]

If I financed with Ford for my new Maverick will there be a chance for a better deal on the initial price?

If I did finance through them, can I pay off loan at any time? Has anyone done the numbers or know the details about a loan through Ford.

Sponsored

 

[realshelby]

Unless there are special incentives from Ford, financing through Ford Credit will not lower the price of the car. Pricing, as long as it is at MSRP as Ford shows on window sticker, is not a bad price as there is little markup. If financing, the interest rate you get is a LOT more important than purchase price where you are worrying over a few hundred dollars.
Just go to any online payment calculator. Put in the amount you are going to finance. Put in term you expect to use. Then put in interest rates. Gonna be hard to beat 6% range for banks and retail lenders ( like Ford Credit). There will be some Credit Unions cheaper and they are a great place to finance if you qualify with them.
Ford Credit is usually VERY competitive with rates. Especially with good credit customers. Chase Bank used to be quite aggressive with rates for instance. Shop around.

 

[Sage]

Unless there are special incentives from Ford, financing through Ford Credit will not lower the price of the car. Pricing, as long as it is at MSRP as Ford shows on window sticker, is not a bad price as there is little markup. If financing, the interest rate you get is a LOT more important than purchase price where you are worrying over a few hundred dollars.
Just go to any online payment calculator. Put in the amount you are going to finance. Put in term you expect to use. Then put in interest rates. Gonna be hard to beat 6% range for banks and retail lenders ( like Ford Credit). There will be some Credit Unions cheaper and they are a great place to finance if you qualify with them.
Ford Credit is usually VERY competitive with rates. Especially with good credit customers. Chase Bank used to be quite aggressive with rates for instance. Shop around.

Thank You very much for your knowledge.

 

[Scott Asheville]

It's almost unheard of to have a prepayment penalty on a car loan in the USA.

Dealerships typically get kickbacks when they sell financing. You can use this to your advantage. But sometimes that kickback is already factored into the price you're being offered. That's why you never start negotiating with "I'll pay cash". Those are the worst words you can utter when you first walk into a car dealership.

PS: I financed with Ford at a 0% incentive rate over three years. Someday that offer will return on the Maverick. Even though I could have paid cash, that 0% rate was basically a $1,500 discount on my Maverick (based on the interest I earned on the cash I kept in savings).

 

[BostonMaverick]

If I financed with Ford for my new Maverick will there be a chance for a better deal on the initial price?

If I did finance through them, can I pay off loan at any time? Has anyone done the numbers or know the details about a loan through Ford.

Your dealer's lending network will include multiple banks, not just Ford. You need to do some research on what interest rate you will qualify for before visiting your dealer. They may give you a better price if you finance it with them, but, they may not give you the best interest rate you could receive elsewhere. Most auto loans do not have a prepayment penalty.

$30,000 at 5.9% for 60 months will cost you $4,715 in interest.
$30,000 at 5.9% for 1 month will cost you $147 in interest.
$10,000 at 5.9% for 60 months will cost you $1,571 in interest.
$10,000 at 5.9% for 1 month will cost you $49 in interest.

How much additional savings would you need from your dealer in order to make an auto loan worth it to you?

 

[NJBob]

It's almost unheard of to have a prepayment penalty on a car loan in the USA.

Dealerships typically get kickbacks when they sell financing. You can use this to your advantage. But sometimes that kickback is already factored into the price you're being offered. That's why you never start negotiating with "I'll pay cash". Those are the worst words you can utter when you first walk into a car dealership.

PS: I financed with Ford at a 0% incentive rate over three years. Someday that offer will return on the Maverick. Even though I could have paid cash, that 0% rate was basically a $1,500 discount on my Maverick (based on the interest I earned on the cash I kept in savings).

Could not beat that 0 percent they had. Happy I got my truck when I did.

 

[Hot Runr Guy]

Just bought my wife a new Edge last month, Ford Credit was offering 0% for 66 months, plus a $1500 rebate. No pre-payment penalty. We can only hope that these deals trickle down to Maverick someday, once they start filling-up the lots.

HRG

 

[Sage]

Your dealer's lending network will include multiple banks, not just Ford. You need to do some research on what interest rate you will qualify for before visiting your dealer. They may give you a better price if you finance it with them, but, they may not give you the best interest rate you could receive elsewhere. Most auto loans do not have a prepayment penalty.

$30,000 at 5.9% for 60 months will cost you $4,715 in interest.
$30,000 at 5.9% for 1 month will cost you $147 in interest.
$10,000 at 5.9% for 60 months will cost you $1,571 in interest.
$10,000 at 5.9% for 1 month will cost you $49 in interest.

How much additional savings would you need from your dealer in order to make an auto loan worth it to you?

Thank You for your calculations. I will look into it further before the end of the month. What I was hoping was some price cut and then when that first bill comes, I would pay it off. Like you said, how much will I save and how much hassle will it be, maybe won't be worth the finagling to even want to mess with it.

 

[Bob The Builder]

Not sure why anyone would want to pre pay a 0% loan on anything from a financial institution. Screw em and feed them beans. Use their money and leave yours in the bank.

 

[ABTremor]

If I financed with Ford for my new Maverick will there be a chance for a better deal on the initial price?

If I did finance through them, can I pay off loan at any time? Has anyone done the numbers or know the details about a loan through Ford.

Your final price on the vehicle will depend on your negotiating skills AND your knowledge of what MSRP is and the dealers invoice cost - they are distinctly different things.

As far as financing through the dealer, sometimes they make the price negotiating easier because they get an incentive from the lender for initiating the loan, that applies regardless if it's Ford finance or another lender.

Fist negotiate your deal. After that finance through the dealer, bring the vehicle home, wait a few business days for the paperwork to be processed and then contact the lender for the payoff. Usually the finance charge will be minimal if you pay off the loan in the first week. The dealership may or may not get there incentive when it's done this way. Most times they only get the incentive from the lender after 30 days.

 

[James K]

If I financed with Ford for my new Maverick will there be a chance for a better deal on the initial price?

If I did finance through them, can I pay off loan at any time? Has anyone done the numbers or know the details about a loan through Ford.

My wife got 0% on her Escape so we financed $10 K of it. She can pay off anytime but at zero, no reason to. Ford finance was easy to work with and I have no problem recommending them but money talks so if you find lower interest from a reputable you may save a fair amount.

 

[HTX]

Just as an FYI, I got a horrible rate through Ford last week. 8.25% for 5 yrs. Over 800 credit score.

 

[Superg0]

but why?

 

[HTX]

Fords rates have been higher than anyone else I’ve checked over the past 1.5yrs. No maverick incentives currently.

 

[Superg0]

Damn, 800 is a superprime credit score. Ford be bugging

Sponsored