[ChristineO]

Sorry if this post comes up twice. I thought I submitted it -but then can't find it!

When I bought my '06 F250, I thought I was told that I had to finance with Ford Credit for 4 months to get certain rebates. When I bought my '04, I did the same thing, but was able to refinance with my credit union right away at a lower rate. So now I've been reading through all my paperwork, to see where it's written I have to stay with Ford Credit for 4 months. I can't find anything - in fact it clearly states that 'there is NO penalty for early pay off.' I even called Ford credit this morning and they told me the same thing. I want to refinance now with my credit union before the rates jump even higher. I'm hesitant to call back the dealer - as maybe they were just pulling my leg that I had to stay with Ford Credit for 4 months? I also don't want to breach my contract with them either - as they were really good to me when I bought my truck. Yet - it seems I never signed anything that says I have to stay with Ford credit for 4 months.

Does anyone know if this is true or not? Can I refinance after making only one payment to Ford Credit?

 

[firefighter9208]

If you don't stay with Ford Credit for 4 months the dealer will have to repay Ford Credit the kickback they (the dealer) get for getting you to finance with them. There is not penalty to you.

Firefighter9208

 

[dirkus]

I had the same question. When I purchased our new F350 a couple of months ago I decided to use Ford credit to get the rebate and was told that I had to keep the loan for 4 months and could not pay down more than 50% before that time. (I had done a quick calculation in my head at the time which made me believe I would still be better of than paying cash and not getting the rebate -- my calculation was all wet!)

When I got the first payment invoice from Ford after about 6 weeks, I recalculated things (this time with a calculator) and discovered that I was going to be worse off after 4 months of paying interest than I would have been if I just payed cash and didn't get the rebate.

I, like you, looked and looked and couldn't find anything in the paperwork that said I had to wait 4 months so I called Ford Credit and asked them and they said no way -- I could pay it off anytime so I did! I ended up paying about $450 in interest for the 6 weeks that I had the loan so was still $550 ahead with the rebate. I just got the final correspondence today saying the loan was all paid off and have never heard anything from anyone about the rebate.

Like firefighter said, I believe it makes a difference to the dealer so they try to tell you that it can't be paid off before 4 months so that they aren't out the money!

 

[boatdoc]

I'm in the same boat. Redo with the credit union or just pay it off myself. I kinda feel for the sales guy, I have bought from him several times and when I asked him about paying off he said it doesn't hurt him one bit. I guess it's the big shots that must eat the rebate. Do you think it flags you on your next rig? I'd hate to be the jerk " that made us eat the rebate" next time around. /ubbthreads/images/graemlins/shrug.gif

 

[ChristineO]

The sales/finance folks at my dealership were really good to me - and I don't want to tick them off either. Plus, the dealership is just a block down the road from me and I don't want them cussing me out every time I drive by! But with the way interest rates are going up, I really want to refinance NOW - before the credit union's rates are as high as Ford's rates. And if the kickback the dealership gets isn't astronomical - I'd even offer to pay it to them so I can refinance now and not cause any hard feelings.

 

[wil]

Re: Ford Credit Financing and Rebates *DELETED*

Post deleted by cmuncy

 

[wil]

[ QUOTE ]
The sales/finance folks at my dealership were really good to me - and I don't want to tick them off either. Plus, the dealership is just a block down the road from me and I don't want them cussing me out every time I drive by! But with the way interest rates are going up, I really want to refinance NOW - before the credit union's rates are as high as Ford's rates. And if the kickback the dealership gets isn't astronomical - I'd even offer to pay it to them so I can refinance now and not cause any hard feelings.

[/ QUOTE ]

don't worry about any of that, they won't take it personally. They're just playing the numbers, to keep as many from re-financing quickly as possible.


Our dealership doesn't key into finance profit that much, so when we know someone is gonna re-fi, we just write the contract at buy rate, and FMCC pays us a flat fee, that is not subject to chargeback.

 

[dirkus]

The way I see it, the dealership kind of misled you anyway telling you that you could not refi before 4 months which isn't true. It might be more profitable for them if you don't refi but that's not what they told you. I certainly wouldn't worry about hurting their feelings.

 

[boatdoc]

Just went down to the credit union today and had them send out a payoff check to Ford Credit. Hard to pass up 5.9% over Fords 10.6%. I think the steal, I mean dealership, will survive without their bonus from Ford. /ubbthreads/images/graemlins/biggrin.gif Thanks for all the info wil.

 

[WolfeWS6]

[ QUOTE ]
Fords 10.6%.

[/ QUOTE ]

That finance guy was going to get a nice bonus from a rate like that.

I hate finance people who rip people off by not offering the best rate available /ubbthreads/images/graemlins/sick.gif

 

[wil]

[ QUOTE ]
[ QUOTE ]
Fords 10.6%.

[/ QUOTE ]

That finance guy was going to get a nice bonus from a rate like that.

I hate finance people who rip people off by not offering the best rate available /ubbthreads/images/graemlins/sick.gif

[/ QUOTE ]


at 10.6%, if he's making the 2.5% he's allowed, here's an example:

finance $40,000 at 10.6%, the dealer reserve is $2,758.92, total finance charge over 60 months is $11,697.80. If you make the first 3 payments, the dealer keeps his reserve. The typical F & I Mgr gets paid about 4% of his reserve, plus bonuses for selling Warranties, Gap, Etch, Life, and A & H Ins. So, if he gets 4%, his commission is $110.36.


The finance guy provides a service, it is your choice whether or not to use that service. Some people with marginal credit or other credit issues may not be able to use normal bank or Credit Union financing.

I have literally hundreds of instances where the only reason the customer got approved was because the Finance Mgr talked the lender into doing the loan. It's called "Selling the Paper"

Anyway, I just try to get the facts out there, so maybe someone can benefit from my knowledge.

I'm gonna write a book one day, but I'll have to wait for some key players to be retired, LOL!!!

 

[boatdoc]

Thanks wil for all the info. I guess when I thought I had ALL their little tricks,holdbacks,number games and so on, down pat, I was wrong and they still tried to get me. I guess that's their job. I didn't know about the finance guy getting all the bonus stuff you mention. Thanks, I'd like to meet you some day. I have worked on many dealership guy's boats over the past 30 years and never once has one of them said anything close to what you have schooled us on. Hope you're not one of those greased back hair, tassle wearing shoe, Docker pants guys. Forgive me if you are but me, as an out in the woods guy, just can't stand them and their games.

 

[wil]

Re: Ford Credit Financing and Rebates *DELETED*

Post deleted by cmuncy

 

[ChristineO]

Here's the end to my tale. Because I have a soft heart - I ended up calling the finance guy today. It was really him that I worked with. I like a no BS operation. Work the numbers the best you can and lets not play games. These guys say they see me drive by every day with a new Ford each year -that they have NEVER sold me one. They worked with me and gave me a good deal. I felt I owed it to this finance manager to be upfront with him. I know he's doing his job and if he can make more money off me - so be it. I explained that the interest rates were going up and that if I wait four months to refinance, I couldn't afford the truck. He understood, and said although he can't keep me from refinancing, he'd rather I didn't. BUT - he also said he couldn't blame me and thanked me for calling and respected me for doing so. I asked him if I was going to be 'black flagged.' He laughed and said no - that it was the nature of the game.

Thank you to EVERYONE on here that gave replies. It surely helped me understand what was going on - and also gave me some amunition and insight before I made the phone call. I realize that I could have legally refinanced without calling my dealership, but I wanted to keep things on a good note, especially since I only live a block from them, and in this type of small community - things like this are sometimes important. I also gave them a super trade in - and they hope to get me back again because I take such good care of my trucks. I know that's where they probably make the most money - and I want them to work another good deal for me in two years!

 

[NickBeek]

ChistineO, you sound like a "stand up guy". Nice to know there are a few left. Happy trucking.