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Frankfort Ford stole my Maverick

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DryHeat

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Let's also pretend that there is a penalty for paying the loan off early. Does this mean that if you choose to refinance the next day you will be penalized because technically whoever you refinance with is paying off your dealer loan early?
Yes. IF (it's a big IF) there is a prepayment penalty then someone has to pay it.

If you pay off the loan out of your own pocket, you have to pay the balance plus the penalty. If you refinance, then either you refi the total (balance + penalty) or you refi the balance and pay the penalty out of your pocket.

Either way the penalty ends up coming out of the buyer's pocket at some point.

It's possible that the dealer is pushing a loan with a prepayment penalty (to prevent exactly what is recommended here) but I personally haven't seen one like that.
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Thrillhouse

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I feel like this is a valuable thread. I know there's some stuff I can learn from here. Just wish the points could be made without pedantic snobbery.

ANYWAY, let's pretend you choose to finance because the dealership won't sell you the vehicle unless you agree to whatever financing they demand you agree to. Let's also pretend that there is a penalty for paying the loan off early. Does this mean that if you choose to refinance the next day you will be penalized because technically whoever you refinance with is paying off your dealer loan early?

If so, would that be an incentive to NOT refinance?
When you refinance, your basically opening a new loan and paying off a existing loan so you would pay an early prepayment fee if there is one. Prepayment fees are rare on auto loans.
 

Johnkn

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I feel like this is a valuable thread. I know there's some stuff I can learn from here. Just wish the points could be made without pedantic snobbery.

ANYWAY, let's pretend you choose to finance because the dealership won't sell you the vehicle unless you agree to whatever financing they demand you agree to. Let's also pretend that there is a penalty for paying the loan off early. Does this mean that if you choose to refinance the next day you will be penalized because technically whoever you refinance with is paying off your dealer loan early?

If so, would that be an incentive to NOT refinance?
Correct, however most all loans today have no prepayment clause. I believe some states don’t allow prepayment penalties. All terms and conditions are stated in the finance agreement that is presented and requires signature when the buyer signs the other docs.


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Thrillhouse

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A lot of times dealers push certain financing so they can finance extras like warranties. Most credit unions and banks will only finance the cost of the vehicle. Ford Motor Credit and banks like Capital One will allow people to finance in all the extras they sell like warranties.
 

mr mojo risen

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I tried to be brief as possible with my original post and cover the deceitful tactics of this dealer . I have two sale documents, one I believe is a DORA the other is the dealers contract of sale that includes MSRP fax and fees. I got regular emails from Ford with status updates. Production for my Lariat AWD was scheduled quickly and arrived two days before the early estimate. Thankyou Ford, sorry to all of you who have not had such good service.
As far as the third party loan, I was never allowed to view the contract. The salesman made a vague comment that there was some form of penalty or fee. Without knowing what it might cost to get out of the loan I had to pass. Not that having this dealer have his commission clawed back causes me much trouble.
Just before I sat to write this update I checked my phone and had a message from a different sales man at the same dealer to let me know that a Maverick had arrived , described my Maverick and let me know they were offering it for around $40K.
I spent what time I had yesterday calling Ford and creating a detailed BBB complaint.
So sorry for your troubles. I went to that dealer’s website and didn’t see any Mavericks listed; hell they hardly didn’t have anything to sell.
 

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Nugget

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Does anyone actually have a loan with a pre payment penalty? I haven’t seen one in years. Dealers are also capped on how much interest they can mark up the loan.
 

JesTr

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Good news in terms of prepayment penalties in KY.


190.120 Payment in full before maturity.
(1) If the finance charge applicable to the retail installment contract has been
determined by a precomputed method, the retail buyer may pay in full at any time
before the stated maturity date and upon such prepayment in full the retail buyer
shall receive a refund of a portion of the finance charge not less than the refund
computed in accordance with the Rule of 78's. An acquisition cost of twenty-five
dollars ($25) shall be deducted from the finance charge before computation of the
refund. Where the refund is less than one dollar ($1) no refund need be made and
acceleration of the balance by the seller, caused by the default of the buyer or
otherwise, shall not affect the date of computation. Any balance remaining unpaid
as of the stated maturity date shall then be subject to accumulation of additional
finance charges at the rate specified in the contract.
(2) If the finance charge applicable to the retail installment contract has or will be
determined by a simple interest method, the retail buyer may pay in full at any time
before the stated maturity date without penalty, except that the holder may collect
and receive a minimum finance charge of twenty-five dollars ($25) in any event.
 

Renho17

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For the OP in KY the range of DOC fees are from $0 to $698 so his dealer being as greedy as possible wanted to charge $689 which is $9 off the maximum. The average in KY is $354.

Average Dealer Documentation Fees by State

KY$354
$0 to $698​
No cap or rules

FL can go as high as $999

and CA is capped at $55

here in TX it is capped at $150 which is what I paid.
CA is not $55, it’s $85
 

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Yeah man I'd go back and fight for your truck.
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