Financing - Diesel Forum

Mike Lewis · 04-16-2001, 09:30 AM

I didn't major in Economics in college, but I just ran some numbers and am coming out with quite a big difference as far as financing an F-350 at 7.9% vs financing at (a hypothetical, best-case) 1.9%. The 7.9% earns the financing company about $7,000 during the life of the loan (5 years.) The 1.9% results in a savings of about $200/mo on payments over the 7.9%.

This could be the difference between Ford getting my business on a NEW truck versus me paying cash for a used truck in a few years. (i.e., if Ford and Ford Credit want to make money, they'd offer me the 1.9% APR now!!)

So my question is, is there a snowball's chance of finding a 1.9% rate on a new Ford SuperDuty? What about 4.9%?

If such a good rate is NOT available (most likely case), what is the best interest rate a fellow with Excellent credit history can expect to find?

Thanks,
-Mike

crashthings · 04-16-2001, 10:35 AM

Mike Lewis, If you find anything lower let us know!!!!

Good Luck

Spitzer · 04-16-2001, 07:14 PM

Mike,

Matt has a good point. I just checked with Pentagon Federal Credit Union during lunch today and they're also offering 6.5% for 60 months - available until June.

Ed

Billibo · 04-16-2001, 11:22 PM

I agree, the rates through ford credit are way too high. I was frustrated and called ford credit before buying a new crew cab psd and got through to a credit manager. I asked how they expect to sell $40,000 trucks to the guys who need a truck. Who can afford $800 per month payments and insurance and them take a $16,000 hit on depreciation in the first two years. They just agreed. [img]images/icons/frown.gif[/img] Good Luck!! Better get one before their 50 grand and $1,200 a month

mattm34 · 04-17-2001, 12:01 AM

Mike - you might look into a a credit union. I went through Austin Telco atfcu.org
All I had to do to join was open a savings account with them. I deposited 25 or 35 dollars to open the account. I have locked in at 6.5 for 60 months. I'm not sure where Dickinson is but they have several locations in the Central Texas area. That was the best I could find.

YODA · 04-17-2001, 09:44 AM

There is one other way to do this now and get a tax credit. If you dont mind taking out a second on you home you can finance it that way and get the interest dedectuable. Some of the 2nd rates are better than what Ford wants

Mike Lewis · 04-17-2001, 09:56 AM

Ha! I don't even own a home (military, move too much!) Planning to get into a cheap apartment to help pay this truck off sooner... having the darndest time deciding what transmission to go with.

(As an aside, what is the automatic in the PowerStroke trucks--an E4OD?)

Best rate I've found is 7.25%. Still looking...

Thanks,
-Mike

showme69 · 04-17-2001, 10:24 AM

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by Mike Lewis:

(As an aside, what is the automatic in the PowerStroke trucks--an E4OD?)

Thanks,
-Mike<HR></BLOCKQUOTE>

That's the old tranny, the current one is the 4R100. Someone else can chime in with the date Ford switched to the 4R100.

As far as financing, I used the United Bank of MOM. My parents wanted to save me a few dollars and loaned me the money for my truck at 4%. Before anyone asks, that deal is only for family.