Ford Financing Interest Rates Increased

[ValenciaOrange]

I was told yesterday by dealer you will have the option of finance at time of order or at time of delivery

If that is the case I would get it in writing. You will never get a dealer to write this down.

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[Random]

Did they offer financing through Ford or someone else the dealer was able to find?

Speculation: Dealer said 0% option wasn't available to get you to try to finance through a lender they get a kick-back from.

They asked if I wanted to finance I said yes at 0%. They said not available any longer. They weren’t mean about it. I ordered 6/28/21.

 

[NotAnonymous]

If that is the case I would get it in writing. You will never get a dealer to write this down.

My dealer also said rates are as of delivery/purchase, not time of order. Logically that makes far more sense even if, unfortunately, it now means higher rates for me whenever my truck arrives.

 

[Renho17]

I went in on Saturday to get all the paperwork taken care of even though the truck hasn't made it to the dealership yet. I got Ford's 1.9% for 60 months financing. Had I waited for delivery it would have been 2.9%.

but how do you actually know that for sure?! It seems each dealership does their own thing. Just cause they say ur rate will go up if you wait sounds like a way to get you to sign on the spot.

 

[Renho17]

My dealer also said rates are as of delivery/purchase, not time of order. Logically that makes far more sense even if, unfortunately, it now means higher rates for me whenever my truck arrives.

That isn’t fair to us one bit. It’s not our fault our truck took 10 months, why should we have to pay for that.

 

[Onslow]

The Farm Bureau rebate may vary by state. Not ever sure if KY's has heard of the Maverick yet.
https://www.kyfb.com/federation/member-benefits/automotive/ford/

 

[MarkG]

but how do you actually know that for sure?! It seems each dealership does their own thing. Just cause they say ur rate will go up if you wait sounds like a way to get you to sign on the spot.

I did the financing on the weekend for my convenience. The dealership didn't request me to sign anything before the truck arrived other than the DORA when I made the order. I had no idea that interest rates would go up. It was just dumb luck that I submitted the paperwork right before they did.

The truck has already been at the railyard almost two weeks waiting to be delivered and I was optimistic that it would be ready soon.

I picked up the truck on Wednesday so everything worked out.

 

[pa-outdoorsman]

I did the financing on the weekend for my convenience. The dealership didn't request me to sign anything before the truck arrived other than the DORA when I made the order. I had no idea that interest rates would go up. It was just dumb luck that I submitted the paperwork right before they did.

The truck has already been at the railyard almost two weeks waiting to be delivered and I was optimistic that it would be ready soon.

I picked up the truck on Wednesday so everything worked out.

The cost of higher interest rates should not be a deal breaker for most people, particularly considering what good value the Maverick is overall. For example, let's say you plan to borrow $25,000 for a 60-month term, which is probably the most common for auto loans.

Under Ford's previous rate of 1.9 percent for 60 months, the monthly payment is $437 and your actual cost of the loan is $26,226. Which means you're paying an extra $1,226 over five years.

Assuming rates go up a full percentage point to 2.9 percent for the same term, the monthly payment rises to $448 and the actual cost of the loan is $26,886.

And if the rate went up 2 full percentage points to 3.9 percent, the monthly payment rises to $459, and the actual cost of the loan is $27,557.

So, you are only looking at roughly an extra $10 each month for each percent of interest, and over the life of the loan, you're looking at an extra $1,200-$2,500, which breaks down to $250-$500 a year. I understand no one likes to pay more for anything, but it would be hard for me to walk away from my Maverick over a higher interest rate when considered in the context of current vehicle prices.

 

[MarkG]

So, you are only looking at roughly an extra $10 each month for each percent of interest, and over the life of the loan, you're looking at an extra $1,200-$2,500, which breaks down to $250-$500 a year. I understand no one likes to pay more for anything, but it would be hard for me to walk away from my Maverick over a higher interest rate when considered in the context of current vehicle prices.

The Maverick is a fantastic value which is one of the reasons Ford cannot fill the demand but that is no reason not to try to get the best deal on financing.

I went into the dealership with printouts from 3 different loan companies that I had pre approval with. The 1.9% from Ford was the best deal. At 2.9% Ford would not have carried my loan and I would still have been happy with my purchase.

 

[Thrillhouse]

You don't have to finance through Ford. My credit union is 1.9% which is who I will finance through if they remain that way. If the rates were equal I would do it through Ford since it's easier but there are more options than Ford Motor Credit.

 

[huunvubu]

I just got Ford to match DCU at 1.24 for 65 months through Capital One financing. They also came up with a rate of 1.75 for 72 months which actually beat DCU so I went with that.

You will pay $491.78 more in interest for those additional 7 months.

 

[TS0323]

You will pay $491.78 more in interest for those additional 7 months.

Oh yeah, the 65 month is definitely a better deal overall. I just wanted the flexibility of having a slightly lower payment. Plus I'll most likely be investing the difference which at a conservative 4% growth rate will at least make up half of what the additional interest will be.

 

[Renho17]

I did the financing on the weekend for my convenience. The dealership didn't request me to sign anything before the truck arrived other than the DORA when I made the order. I had no idea that interest rates would go up. It was just dumb luck that I submitted the paperwork right before they did.

The truck has already been at the railyard almost two weeks waiting to be delivered and I was optimistic that it would be ready soon.

I picked up the truck on Wednesday so everything worked out.

sweet, glad it worked out for you!

 

[jc888888888]

My dealer has said he believes if the deal was out there when you ordered your truck ,Ford honors it ...albeit the salesperson said people with low marginal credit scores are treated less enthusiastically is how HE put it. 0% 36 month free money he told me and again HE said it NOT me are enticements for highly qualified buyers to take the plunge and buy a vehicle. Again HE said his experience was 70% of the folks he writes zero percent car loans with where originally cash buyers with 800 ++ FICO scores that just figure they can put the money to work somewhere safe and make .50% to 1.00% so it is net gain for them

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