Just got off the phone with Ford Financing....No early payoff penalty!!!
02-17-2010, 03:08 PM
#11
American Muscle
02-17-2010, 04:18 PM
#13
Senior Member
I financed with Ford's Flex Buy and got 0% for 66 months. Only drawback is the payments go up 15% after the first three years, so I either trade in or take the bump. I usually don't keep a vehicle longer than three years anyways, and that 6.2 Boss might be pretty tempting.
02-17-2010, 04:43 PM
#14
Senior Member
02-17-2010, 05:12 PM
#15
Senior Member
Remember your first year or two of payments have alot of interest. If you wait three months on a $30,000 loan at 7% (60 months at about $495 per month), you are going to pay about $500 in interest. I would refinance ASAP. If you wait 6 months, Ford has more than made their rebate money back and that is what they are banking on by offering the rebate.
Just FYI the total interest over 60 months for the rates I quoted above is $7,200.
Just FYI the total interest over 60 months for the rates I quoted above is $7,200.
02-17-2010, 05:22 PM
#16
Senior Member
Remember your first year or two of payments have alot of interest. If you wait three months on a $30,000 loan at 7% (60 months at about $495 per month), you are going to pay about $500 in interest. I would refinance ASAP. If you wait 6 months, Ford has more than made their rebate money back and that is what they are banking on by offering the rebate.
Just FYI the total interest over 60 months for the rates I quoted above is $7,200.
Just FYI the total interest over 60 months for the rates I quoted above is $7,200.
02-17-2010, 05:39 PM
#17
Just another member
Remember your first year or two of payments have alot of interest. If you wait three months on a $30,000 loan at 7% (60 months at about $495 per month), you are going to pay about $500 in interest. I would refinance ASAP. If you wait 6 months, Ford has more than made their rebate money back and that is what they are banking on by offering the rebate.
Just FYI the total interest over 60 months for the rates I quoted above is $7,200.
Just FYI the total interest over 60 months for the rates I quoted above is $7,200.
Other than that, I agree that first three months are about $500 in interest.
On 5% loan it would be about $370.
But, the basic point is good: refi these Ford loans ASAP !!! Thanks
02-17-2010, 05:48 PM
#18
Most car loans are simple interest and not amortized. Also, your savings should be against the cost of the alternative. Ex: if you're paying off by refinancing a 7% loan with a 5% loan, you're only saving 2% over the 3-4 months. If you're pulling cash out of a 1% money market account, you're saving 6%.
Given that most people are going to carry a loan, and that the Ford rates aren't absurd, the $1000 rebate is a good deal even if you wait 3 months to refi. If you're not going to carry a loan, you could just choose to finance the minimum $7000 required to get the rebate and make a cash down payment for the rest and minimize the loan expense (which is what I plan to do).
Or you could just pay it off immediately and not worry about it. I doubt the dealer would remember it and hold it against you next time you go to buy a car. It's just whatever you feel is the right thing to do.
Given that most people are going to carry a loan, and that the Ford rates aren't absurd, the $1000 rebate is a good deal even if you wait 3 months to refi. If you're not going to carry a loan, you could just choose to finance the minimum $7000 required to get the rebate and make a cash down payment for the rest and minimize the loan expense (which is what I plan to do).
Or you could just pay it off immediately and not worry about it. I doubt the dealer would remember it and hold it against you next time you go to buy a car. It's just whatever you feel is the right thing to do.
02-17-2010, 07:19 PM
#19
Just another member
Many are amortized and have a larger interest amount portion of the payment at the beginning of the loan which will decline over loan term. The interest portion is not larger than the principal portion however.
02-17-2010, 08:38 PM
#20
Senior Member
This has me thinking. I did the Ford Financing thing to get the extra $1K with full intentions of a re-fi with my credit union. I can get the new car rates through the credit union for up to 180 days after original purchase. The Dealer's finance guy said I have to make 3 payments on the truck to Ford Finiance before I can re-fi with someone else. I never saw that in writing (never thought the guy would lie either) but I'm going to check over my contract. If I don't see anything, I'm jumping ship and getting the new loan.
Ed
Ed