Ford Financing Interest Rates Increased

[NJ Pinelands]

Folks, don’t forget you can get $500 off by joining Farm Bureau. Cost is only $20 for the Illinois Farm Bureau. You do not have to be a state resident, be a farmer, or own farmland in Illinois. Also valid for other Ford trucks. Phone number is 309-663-6497.

Sponsored

 

[NotAnonymous]

Folks, don’t forget you can get $500 off by joining Farm Bureau. Cost is only $20 for the Illinois Farm Bureau. You do not have to be a state resident, be a farmer, or own farmland in Illinois. Also valid for other Ford trucks. Phone number is 309-663-6497.

Yep, I already jumped on the Farm Bureau application a couple of weeks ago as at least a small hedge against the increasing rates I'll face.

 

[huunvubu]

Ford credit has raised the cost of financing by from .9 to 1%. 0% for three years is gone 5.9 is now 6.9%!

With the FED expected to raise interest rates starting next month this shouldn't really be a surprise.

I am glad I got the 36M (3 years) 0.0% rate last month.

Here are the current rates from Ford Credit:

36M (3 years) 0.9%
48M (4 years) 1.9%
60M (5 years) 2.9%
72M (6 years) 4.9%
75M (6.25 years) 5.9%
84M (7 years) 6.9%

All I can say is OUCH for any loan beyond 5 years.

The 2% jump in interest from 5 years to 6 years is a 69% increase in interest costs.

Why is there even a 75 month loan? What purpose does it serve as it is only 3 months longer than the 72 month plan and is at 5.9% vs 4.9% or a 20% increase in interest costs.

On a $20,000 loan:

72M (6 years) at 4.9% the payment would be $322 per month.
75M (6.25 years) at 5.9% the payment would be $320 per month.

Going with the 75M loan the total cost is $24,000 ($4,000 interest) whereas going with the 72M loan the total cost is $23,184 ($3,184 interest).

So those three additional months cost an additional $816 in interest. All for a reduction of $2 per month in monthly payment.

 

[pa-outdoorsman]

Interesting perspective.

 

[Mavforever]

Are you trying to say that I was mislead by my sales person

 

[Mavforever]

With the FED expected to raise interest rates starting next month this shouldn't really be a surprise.

I am glad I got the 36M (3 years) 0.0% rate last month.

Here are the current rates from Ford Credit:

36M (3 years) 0.9%
48M (4 years) 1.9%
60M (5 years) 2.9%
72M (6 years) 4.9%
75M (6.25 years) 5.9%
84M (7 years) 6.9%

All I can say is OUCH for any loan beyond 5 years.

The 2% jump in interest from 5 years to 6 years is a 69% increase in interest costs.

Why is there even a 75 month loan? What purpose does it serve as it is only 3 months longer than the 72 month plan and is at 5.9% vs 4.9% or a 20% increase in interest costs.

On a $20,000 loan:

72M (6 years) at 4.9% the payment would be $322 per month.
75M (6.25 years) at 5.9% the payment would be $320 per month.

Going with the 75M loan the total cost is $24,000 ($4,000 interest) whereas going with the 72M loan the total cost is $23,184 ($3,184 interest).

So those three additional months cost an additional $816 in interest. All for a reduction of $2 per month in monthly payment.

Believe me I’m thankful daily to have received my hybrid truck 12/8 and I took the .9 rate for 48 months with 12k down…

 

[huunvubu]

Believe me I’m thankful daily to have received my hybrid truck 12/8 and I took the .9 rate for 48 months with 12k down…

I am also grateful to have received my hybrid truck 12/13 and I took the 0.0% rate for 36 months with 8k down. Payments are $500 a month .

I had cash on hand to pay outright but kept the $18,000 in a savings account that will earn at least $184 over the 3 years and probably more with the FED raising interest rates starting in March.

 

[Dun4791]

Interest rates going up is a good thing. Hopefully it will cool consumption some and pricing on everything will lower!

 

[Jdub]

With the FED expected to raise interest rates starting next month this shouldn't really be a surprise.

I am glad I got the 36M (3 years) 0.0% rate last month.

Here are the current rates from Ford Credit:

36M (3 years) 0.9%
48M (4 years) 1.9%
60M (5 years) 2.9%
72M (6 years) 4.9%
75M (6.25 years) 5.9%
84M (7 years) 6.9%

All I can say is OUCH for any loan beyond 5 years.

The 2% jump in interest from 5 years to 6 years is a 69% increase in interest costs.

Why is there even a 75 month loan? What purpose does it serve as it is only 3 months longer than the 72 month plan and is at 5.9% vs 4.9% or a 20% increase in interest costs.

On a $20,000 loan:

72M (6 years) at 4.9% the payment would be $322 per month.
75M (6.25 years) at 5.9% the payment would be $320 per month.

Going with the 75M loan the total cost is $24,000 ($4,000 interest) whereas going with the 72M loan the total cost is $23,184 ($3,184 interest).

So those three additional months cost an additional $816 in interest. All for a reduction of $2 per month in monthly payment.

I believe the 75 month is the flex pay with lower payments for 3 years then an increase the last part.

 

[Rojo]

The whole reason I ordered last October was because I suspected interest rates were gonna go up after the first of the year, the dealer was like "8-10 weeks for delivery" which was putting me right at the last week for December. I guess I was foolish to believe they would actually deliver in that window.

I'm gonna lose my shit on the dealer when I go to purchase my truck and they won't offer me the lower interest rates that I told I could get. This whole experience has really soured me on Ford. I probably won't be buying another after this.

 

[Chicago Mike]

Wow, glad I was able to secure the 0% APR for 36 months last week. Only thing is the monthly payment SUCKS!!

 

[NJ Pinelands]

I am also grateful to have received my hybrid truck 12/13 and I took the 0.0% rate for 36 months with 8k down. Payments are $500 a month .

I had cash on hand to pay outright but kept the $18,000 in a savings account that will earn at least $184 over the 3 years and probably more with the FED raising interest rates starting in March.

No trade-in ?

 

[NJ Pinelands]

Maybe Tim the Ford video guy will address the rumors tonight.

 

[lavatorymaster]

I was told I was price protected at the time I placed my order. We'll see if that actually pans out as my truck should arrive within the next two weeks. Hoping for the 0% 36 month offer.

Sponsored