Financing questions, and my final post in this sub-forum…

[Roachant]

…because my maverick is at the dealer! When we get it, I’ll post a pic in another sub-forum.

Currently, the interest rate with Ford for financing is 7.9% for a 6 year purchase plan. At 5 years it’s even higher at 8.5%. my wife and I are considering using our line of credit to buy the truck which has a slightly lower interest rate.
Does anyone have any advice or thoughts? Any downsides to going the line of credit route Vs the dealership?
thanks!

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[SLH13]

Check your local credit unions. I just opened an account with $100 and am getting 6.15 when ours comes in in the next 2 weeks. Even a regular bank may be lower than Ford.

 

[Ranch]

Check your local credit unions. I just opened an account with $100 and am getting 6.15 when ours comes in in the next 2 weeks. Even a regular bank may be lower than Ford.

6.15 is pretty good. I just checked my credit union and they are at 6.49% for five year and 6.69% for six year.

 

[OB1e]

First things first, if you plan on having the loan paid off asap, then it doesn't really matter. Even having it paid off in 2 years, the different between 6.49 and 7 is a "few" bucks. You can use your line of credit, im guessing it's a heloc. If i got my truck in 2022 my dcu rate was gonna be 1.49%. a year later im at 4.49%, thanks fed! I plan on cash out refinancing whenever these rates go down (ha!) the best rate dcu currently has is like 6.49 and they got rid of the hybrid discount. My title will probably be in my hands by the time these rates ever go down.

 

[Ozarkbeard]

...Does anyone have any advice or thoughts? Any downsides to going the line of credit route Vs the dealership?...

If you can secure a lower rate from another source, that's good. Go ahead and get those ducks lined up so you can pay for the truck at delivery time. But when you go to get the truck, don't initially tell them how you plan to pay for the truck. If they ask, tell them you haven't decided. First ask them if there's any OTD price reduction for using their financing. If there is and if you think it's worth doing, go ahead and finance through the dealer. Then, pay the car note off with the first month's payment. There should be no penalty to pay off the car loan early.

 

[InDaRed2]

I had my financing lined up through my local credit union prior to picking my truck up but my dealer was able to beat it with lenders they worked with. They had to run my credit but i didnt care if they were able to beat what i had lined up.

 

[Oscarcat]

6.15 is pretty good. I just checked my credit union and they are at 6.49% for five year and 6.69% for six year.

RE: Credit Union = shop multiple CU's. Also ask if there is a savings if you have the monthly payment automatically deducted from your account and/or if you have auto-deposit of a paycheck, retirement check, government SS check etc. etc.

 

[Roachant]

If you can secure a lower rate from another source, that's good. Go ahead and get those ducks lined up so you can pay for the truck at delivery time. But when you go to get the truck, don't initially tell them how you plan to pay for the truck. If they ask, tell them you haven't decided. First ask them if there's any OTD price reduction for using their financing. If there is and if you think it's worth doing, go ahead and finance through the dealer. Then, pay the car note off with the first month's payment. There should be no penalty to pay off the car loan early.

I’m planning to go and see what they can do for me before committing to any financing, so I’ll have to make two trips which works out if it’s this week because it will give me time to get a cashiers check, and arrange for my old car to be delivered to the buyer (I sold it to a friend) if we do actually go with the bank.
Thanks for the info!

 

[tired comet]

While I generally prefer going with Manuf. financing (in the past its been cheaper) with the Maverick I went Bank. Bank was lower interest than Ford.

 

[jamie722]

If you get a pre approval from a credit union or other financing source you can ask your dealer if they’ve worked with them before. If they have it’s super easy- just give the dealership your down and they will handle the rest with your other bank. One benefit with my credit union Kinecta is they offer a 1/2 percent discount off the advertised rates for auto pay.
I was considering paying cash for the Mav because of the high interest rates, but I did the math and as it turns out I actually make a little more $ in interest by keeping it in a high yield savings account (over the 60 mo term, due to compound interest) and that money is available for emergencies if I need it. Just something else to think about.

 

[generalmgr]

I second the credit union... I never knew until recently that almost anyone qualifies to join some credit union somewhere. And the rates at mine are so much lower, mortgages and credit cards too. As to using the HELOC, I lean towards no. In essscne you are pledging an interest in your house to purchase a vehicle. If you can't pay back the HELOC for whatever reason, your house is now in jeopardy. If you can't pay your car loan, you only lose the car. So, it depends on an examination of your risk tolerance and on the stability of your entire financial situation.

 

[JuJuMike]

Go to Wells Fargo.
They have a promotion going on.
15 months 0% interest!
They gave me a $30,000 credit limit.
With that and my money down, I got the title to the truck. Yeah, the payments will be steep for me, but I’ll have my truck paid off in 15 months 0% interest. Might be worth looking into!

 

[2020 GT500]

…because my maverick is at the dealer! When we get it, I’ll post a pic in another sub-forum.

Currently, the interest rate with Ford for financing is 7.9% for a 6 year purchase plan. At 5 years it’s even higher at 8.5%. my wife and I are considering using our line of credit to buy the truck which has a slightly lower interest rate.
Does anyone have any advice or thoughts? Any downsides to going the line of credit route Vs the dealership?
thanks!

If your line of credit is secured by your house then you’re putting up your house as collateral. If that is a risk you want to take then go for it.

 

[Superg0]

I've been a Bank of America customer for 20 plus years. They were offering 5.99% for 60 months. Not bad for a CC company. I joined the Preferred Awards program and my 3 month average balance gave me an additional .5% off. I would have never thought I would finance a vehicle through my CC and personal bank. Ended up going 5.84% for 72 months. I asked the dealer before I signed my paperwork if they could match or beat that rate I would go with them....they said we are no where close. Bad time to finance a car unfortunately.

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