Financing with Ford will get you another $1500 rebate, is this true?

[SteveNC]

I saw this on Ford's website but it wasnt real clear if you get both rebates. Since I'm looking a V10, I would get $2500 plus $1500 if I finance thru Ford. Is this correct??

Thanks

[SmokeyWren]

Yes, but only if you finance the rig at Ford's "regular" interest rate, which will depend on your credit score (credit rating). Probably around 7 percent, but could be higher if you don't have a spotless credit score.

Consumer's Report current issue (April 2005) says if you properly do the math, you'll see it's almost always better for you to skip the finance rebate and go to your credit union to finance the new rig.

I would highly recommend you buy and read that article in Consumer's Reports if you don't have a subscription to it.

[D_Hawk]

If they offer an additional rebate for financing through ford, definatly take it. Look over the ford motor credit contract, no where on the contract does it say their is a prepayment penalty. The dealer might say you have to wait a certain number of payments before you can pay off the contract but they are just saying this so they get their kickback on getting you to finance at a rediculous rate. If you go to buy a truck this is how it should happen. Negotiate a price for the truck, when they write up the fmc contract keep a straight face when they tell you it will be 9% interest. Sign the contract and leave with your new truck, don't say a word to the finance manager about how you already went to your local credit union and are preapproved for a 4% rate. Whenever the first payment shows up take it to your local credit union and get a new car loan and write ford a check for the payoff. Sure you payed ford a few dollars in interest but you got the rebate taken off the sales price. Also when you get a rebate the dealer can't call back a month later and say you owe them for the rebate. This is all from personal experience.

[someday]

so there is only a rebate for the really high interest, not the low ones right because i dont know any lender that is 0 for 36 or whatever

[D_Hawk]

Probably not, basicly ford is giving you money up front and then making it back and then some by having you make payments over 48 or 60 months at the higher interest rate. They figure most people won't realize they can turn around and get a lower interest loan throught their credit union. For example if you borrow $30000 for 60 months at 4% you pay $3150 in interest over the life of the loan assuming you make the minimum payment every month. If the interest rate is 8% you pay $6500 in interest assuming the same conditions. That is why they will offer you $1000 or $1500 up front in the form of a rebate to finance through fmc.

[esanders]

This would be awesome, I'm going to pay cash for my truck anyways, if I can get another $1500 rebate and then make one big payment to pay it off, that would be superb.

[barlow46]

One more idea that worked for me. I had an open line of credit for a home equity loan through my bank. Didn't cost me anything to get it a couple of years ago. I bought my truck 3 months ago and got the 1500 rebate by using Ford Credit. I then payed off Ford with the home equity loan at a fixed rate of 5.25 for 60 months. The best part is that by using the home equity loan, I can also write off the interest on my income tax for the years I use it. Now I'm getting down to affordable interest on the whole deal and I still have my capital making me more than 4% at a fixed rate and if I want to take a little risk, I can double that.

[esanders]

Does anyone have a link about this rebate? I can't find anything about it on the Ford or Ford Credit website.

[SmokeyWren]

[ QUOTE ]
Does anyone have a link about this rebate? I can't find anything about it on the Ford or Ford Credit website.

[/ QUOTE ]

Click on this: https://www.onlinevehiclefinancing.com/aaui

Then fill out the blanks, and you should see this:


<font class="small">Code:</font><hr /><pre>
Retail Financing
Manufacturer's Rebate Low APR
$1500 OR 0.9%

</pre><hr />

[D_Hawk]

Disregard what I said if you only get the choice between a manufacturers rebate and a low apr. What I was talking about was when you can get a financing rebate, in addition to a manufacturers rebate, for financing through fmc. If you are in the situation of $1500 or low apr then you need to be honest about how long you are going to keep the vehicle and length of finance contract, run all the variables through excel and figure out what puts you ahead.

[Going_Going_Gone]

Just make sure that your credit union won't consider a one-month-old truck to be a "used" vehicle.