Financing & Build Time Question

[ExplorerS]

Hi,

I dunno if this is off topic, but this is the closest I could find. Basically I am planning on ordering a 2000 F250 C/C 4x4 PSD XLT. I am only 19 so my credit hasn't had much time to establish but I've had credit cards since I turned 18 and they are all good credit as well as gas cards, I am putting 17k down and financing the rest (20k) I am planning on having my parents cosign on the loan, does anyone know if they cosign will i still get strapped with a 12-13% rate or will it bring it down to the rate they could have gotten?

Also what is the consesus on avg. build times? 2 months? I am in no hurry, the longer it takes the more I can put down and the less monthly payments =)

Jeff Smith

[kreynol2]

Co-signing will not often bring down the interest rate, though it might. The co-signers are simply stating that if you don't make the payments, they will. This does not change the interest rate, just the repayment ability. If you don't make the payments, your parents are legally responsible and can have the bank banging on them to make the payments. If you screw up, their credit is wrecked. Be careful!

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Kevin

[Shawn]

Howdy!

I am 21 and have been in your shoes before.

<rant>

About 2 years ago, I basically said to <Houston in Summer> with credit companies and decided to outright purchase things without financing them or not buy them at all. For some reason, they all now want my business. Nothing has changed except my age so basically they can take their offers and(Think proctology...) >:<

</rant>

At your age, you are considered somewhat of a risk and they tend to charge high rates to lend you money no matter who cosigns.

My best suggestion to you is put as much down and pay as much as you can per month. The more you pay each month, the faster it will be paid off and the less interest paid. Once you sucessfully finance a vehicle, most of the people I have talked to say that will improve your credit record significantly.

Wacky alternative:

Do you think that your parents would be able to lend you the money and you pay them back with a lower rate of interest?

SP



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Ford-Diesel.Com Moderator
shawn@ford-diesel.com
1999.5 F250 PSD CC 4x2 LWB Black over Tan, Built 3/08/99

[ExplorerS]

Thats a good idea, I may have to investigate that.. They might ya never know. Actually what kinda screwed me on everything was I bought a ford explorer a little over a year ago and instead of paying the extra $20 a month to have a cosigner and put it in my name, I paid the lower interest rate and just did the loan in my parents name, so i didn't get ANY credit from it, never the less, my first credit card was a secured one =)

Thanks for the tips!
Jeff

[Troutly]

Jeff,

You are probably looking at 3 to 4 months from order to delivery as more of the average. Some have gotten them sooner, some have taken longer. It really depends on what you want, what the factory is looking to build at a certain time, and what you dealer's allocation looks like. If the dealer has more orders in the pool than Ford is giving him for allocation, you are gonna wait a while. Go to the HOME PAGE, click on teh FAQ section, and read away......

Best of Luck!

[SmokeyWren]

Shawn said: "My best suggestion to you is put as much down and pay as much as you can per month. The more you pay each month, the faster it will be paid off and the less interest paid. Once you sucessfully finance a vehicle, most of the people I have talked to say that will improve your credit record significantly."

Good advice. Looks like he's on the way, with $17k down payment.

As far as payments go, stretch it out as long as possible, to get a lower payment. But then make extra payments as often as possible.

The best way to finance a truck so you can make extra payments, or even to just make bigger payments than required, is to finance thru a credit union. Credit unions figure the amount you owe and the interest payments different than the typical bank or car loan company, so you can make the payment any amount you want to, as long as it's at least the minimum amount required by your loan agreement.

With over 40 percent down payment and your parents cosigning the note, a credit union will probably have the best interest rate you are going to find.

If you don't belong to a credit union, it's time you joined one. If your parents already belong to one, then maybe just join theirs. That's what my kids did when they were your age.

As to how long it takes to get a SuperDuty truck after you order, it depends on a lot of factors. The record is about 5 weeks, with a good percentage showing up in 6 to 8 weeks. Normally about 8 to 10 weeks. Often 10 to 12 weeks. And sometimes more than 12 weeks. It depends on which dealer you choose, and exactly which truck and options you specify. Right now, the longest order times are usually for CrewCab 4x4 Lariats with single rear wheels - and Lariat LE Dooleys.



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Ford-Diesel.com is a member-supported website, for more info: Click here. ........ Ole retired guy in west Texas with Darling Wife and Sierra Blanca - the white mountain of a '99.5 F250 diesel-powered CrewCab.

[Hutch]

This may sound stupid since I don't know your situation, but if you end up borrowing from your folks they could investigate a home equity loan (if one applies). Therefore their interest is deductible. Of course if your folks are a good with money as you sound (17K down at age 19 is damn good) then they probably wouldn't need to take out a loan for you. Of course this route continues to do nothing for your credit rating...

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00 F350 4X2 CC LWB PSD 6SP DRW 4.10LS Lariat Dark T-Red Trailer/Camper CD Mirrors AICM.
Ordered: 12/9 Serialized: 1/14 Sched Build: 2/7

[MIKE KEMP]

I have a 2000 XLT CC PSD SB on order as of 12/21/99. Was told 12 weeks by dealer out of Utah. Be patient, good things happen to those that wait

[ford super duty]

With as much as you have down even with very little credit (as long as it is good) you are well on your way with a relatively good rate. My Daughter and I recently bought a car, her rate was a level 3 by herself. With me cosigning, which I had to do to get the Employee Purchase Rebate for her, the rate was lowered to a level 0. In general for "normal" rates this would be about a 6-8 point swing, with the special finacing that was available it was only a 2 point decrease. BE kind to your parents

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Inventory Manager Ford Truck Dealer

I second whatSmokey said, go with a credit union. many around here only require that you live in the same county. my interest rate dropped from 13.5 to 7.75 when I switched from a bank(that I had banked with for 20 years)to a credit union (that I had banked with for 20 minutes)but get the loan first at the credit union NOT at the dealer (they skim a little off the top) I would think with 17K down you would have little problem qualifing for a good rate at a credit union.

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1997 F-350,XLT,E40D,4.10,LB,DRW,look here to see old truck Remember to send your donation to www.ford-diesel.com Quack quack QUACK quackQUACK

[Horse Doctor]

I wouldn't worry too much about the interest rate (within reason). With what you are putting down interest will be a very small part of the payment. Be sure the loan is in your name to establish a credit history. Then enjoy it. When I was your age I was driving a bucket of bolts with nothing but rust holding it together.

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'00 (born 11/99) F250 SD PSD Lariat SC,auto, Harvest gold, loaded