Financing thoughts

[Lyle]

0% for 36 months is the best deal IMO, allows you to keep your money invested instead of paying cash or a large down payment for the truck. It may require a tighter budget, but it is a big payoff to your finances in three years.

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[DryHeat]

So will dealers lock in a rate for a retail order made in June or are we all at the mercy of whatever Ford puts out after Jan3?

I asked my dealer that same question back in October. He said that he could lock in the rate for my truck (ordered in June, build date in December) by putting my info into a dealer computer program called "Smart Vincent."

He did that and then printed out a sheet with my name, VIN, etc. on it that also listed the programs available at that time (which included the 0% - 36 month deal). He put that sheet in my file at the dealer and gave me a copy, saying that would protect the rate for me.

He thinks that the program ("Smart Vincent") saves the deal under my name/number and that that will show Ford I am entitled to the deal. That said... He didn't seem entirely sure about the process so I am hoping he is right.

 

[uh50]

Just so that others see just how much more a 4%/72 month loan costs vs a 2%/60 and 1%/48:

Not doing this to single you out! Primarily want to point out the small difference, particularly between the 72 and 60 month loans. We are talking $57 dollars/month to save yourself over $2,000 in interest - you'll also build the equity in the vehicle much quicker, and be paid off a year sooner.

Even if the loan is for $20,000 - the difference still ends up at $1,500. To everyone buying and financing - your future self will thank you. Also a general caveat - if $57/month means the difference between affording the payment or not, you should be looking at a quality used vehicle for less (though I understand the current market makes this significantly more difficult...)

2% vs 4% doesn't sound like much, but there is a reason banks are in business...

Thanks for the reply. I'm fully award of the interest rates available to shorter terms and the economics behind the savings possible. As stated in my post, we are on a fixed income and monthly payments are of primary interest to us, not the long term savings shorter term financing brings. I'm 75 and may be dead before ever getting a truck paid off. Besides our savings is for emergencies, not for buying trucks.

Thankfully, we had a lot of equity in our trade in vehicle that I picked up a check from the dealer this morning. Again, I appreciate the thought behind your post.

 

[pxpaulx]

Thanks for the reply. I'm fully award of the interest rates available to shorter terms and the economics behind the savings possible. As stated in my post, we are on a fixed income and monthly payments are of primary interest to us, not the long term savings shorter term financing brings. I'm 75 and may be dead before ever getting a truck paid off. Besides our savings is for emergencies, not for buying trucks.

Thankfully, we had a lot of equity in our trade in vehicle that I picked up a check from the dealer this morning. Again, I appreciate the thought behind your post.

Of course! No ill will intended at all. I just want to show numbers whenever these threads come up. It is something that my younger self would not have paid attention to, but it is a significant hidden cost that adds up over the years. If it clicks with one person I've done my work!

 

[uh50]

Of course! No ill will intended at all. I just want to show numbers whenever these threads come up. It is something that my younger self would not have paid attention to, but it is a significant hidden cost that adds up over the years. If it clicks with one person I've done my work!

Oh, I agree with you. 20 years ago I wouldn't have even financed a vehicle unless I could get 0% which is how I bought my 2006 King Ranch F150. Situation is totally changed when I retired and no replacement income is coming in other than social security and 401K payments. Thankfully, I made enough money when I worked that my SSA is near the top that I don't have to touch our 401K other than the normal withdrawals.

The information you provided is very good and I don't begrudge your willingness to help by posting useful information. Again, thanks for the thought.

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