Refinancing after Ford Credit
08-21-2010, 06:56 AM
#11
Senior Member
There is no early payoff penalty nor is there a requirement to make any payments before you switch.
my 1st payment was my Payoff from a refinanced load at a lower rate.
my 1st payment was my Payoff from a refinanced load at a lower rate.
08-21-2010, 07:10 AM
#12
I called Ford Credit Company and got my account number and payoff amount and then refinanced before I even received my first bill in the mail. I did it about a week after buying my truck. there was no penalty and my bank got me a 1.9% loan, as compared to ford's 6.9%.
i was nervous about it too but after reading quite a few other threads, i decided to do it and now i'm happy i did.
i was nervous about it too but after reading quite a few other threads, i decided to do it and now i'm happy i did.
08-21-2010, 07:13 AM
#13
When a dealer gets someone to finance through Ford, they get a kickback from Ford (maybe around $100). when you refi early, the dealer loses that kickback, which is why they tell you to make a certain # of payments first.
08-21-2010, 08:51 AM
#14
Hmm, if I had known this, I would have paid it off the first month. Oh well. On my $7500 loan, I paid $5000 the first payment, sent in my second payment yesterday for $2000, and next month will be my last payment of $500 plus whatever little interest accumulated.
08-21-2010, 08:54 AM
#15
Just another member
You can refinance immediately, even before your first payment to Ford.
No penalty. Many of us have done it here, and some more than once.
Despite the foolish comments about BOA and bailouts above, of COURSE you want to refinance to a lower rate than Ford, which is easy to find.
Thanks
No penalty. Many of us have done it here, and some more than once.
Despite the foolish comments about BOA and bailouts above, of COURSE you want to refinance to a lower rate than Ford, which is easy to find.
Thanks
08-21-2010, 09:28 AM
#16
Senior Member
If your dealer treated you well, then just wait 2 payments..... If you dont, the dealer gets charged back that extra $1000 to finance with Ford Credit. If the dealer treated you like crap, then the h*ll with em. Remember, there ARE some genuinely good dealers out there that dont deserve to have that charge back on top of everything else. Just my $.02
08-21-2010, 09:30 AM
#17
Just refinanced also. You have to wait a week or so before you can get your account number.
Does Ford, or the dealership, really expect people not to refi when you can get less than half the interest rate at the bank? You won't lose the $1000.
Does Ford, or the dealership, really expect people not to refi when you can get less than half the interest rate at the bank? You won't lose the $1000.
08-21-2010, 12:59 PM
#19
It's not a "kickback" but it is called "reserve". If the loan stays in place for 3 months Ford Motor Credit will pay the dealer the reserve on the loan. The reserve is the difference between what Ford charges the dealer for interest on the loan and what the dealer charges you; that amount is usually capped a 2 points (2%). Let's say the buy rate from Ford is 4.9% and the dealer charges you 6.9% the dealer will make the difference between the buy rate (4.9%) and the loan rate (6.9%). That amount can be substantial because Ford will pay the dealer the entire reserve amount for the full term of the loan even if it is paid off early; the only caveat is that the buyer make three payments for the dealer to qualify for his reserve.
Last edited by Pugnacious; 08-21-2010 at 04:27 PM.
08-21-2010, 03:27 PM
#20
Senior Member
Paid my Ford Credit loan out less than a week after taking possession of my truck. No issues with doing so...as others have stated there is no penalty on loans to pay them out early, unless its in your contract somewhere.
Could be slightly different in the US than Canada
Could be slightly different in the US than Canada