Jbsengineer

Looking at a EB Lariat. The dealer says in order to get the most incentives I need to finance through the standard rate at 8.99% ...

Can this be refinanced or paid off early? How many of you have done it?

8.99% WTH!

Yippie21

No WAY dude... Here's what I got... ( for N. Texas ) two weeks ago... $2500 rebate on lariat ( another $1K is avail on the XLTs ) and $1K to finance with FMC. So I say ok... all that was off of "invoice". So I've got good credit. I expect a competitive rate. 6.9 is what they give me @ 60 mo. !! My C.U. has 2.9.

They tell me make three payments with FMC ( Ford Motor Credit ) and I can move the loan and no big deal. I think about it over the weekend and decide I can't really trust FMC not to roll that $1K back into my "payoff"... thus I'm stuck. So I tell the finance manager I'm coming in to redo the deal. No problem. After much back and forth, he makes a phone call, and in five minutes says FMC will match my C.U. @ 2.9 for 60mo and I can keep the rebate with Ford. ?? Really?

So if I'd not tried to unravel the financing, they'd just left me at 6.9. That didn't make me real happy but I guess I can't blame them for trying to make a buck here or there.

So the ONLY rebate you should be putting at risk ( as far as my deal was ) is the $1K from FMC.. and now you know they can even do lower rates. Now how you get your dealer to do that, I don't know. 8.99 is crazy if you have decent credit. Good luck!!

gw1800

Well I went with the FoMoCo 0% for 60 months and they still came off the sticker by $5,000. Okay that was - the additional $2,000 in insentives, but when I did the math, it was still better to go that route rather than my CU's best of 4.49% for 60.

Shovel-ready project

You can refinance it any time. I did mine about one month after purchase at 2.49% at Pentagon Federal CU. Look on your purchase contract-it should say in large print NO PENALTY FOR EARLY PAYOFF. As for them adding the rebate into the payoff, you know how much you financed-it's on your contract-go to FC website and check your current balance. The payoff amount should be the balance amount plus a few bucks for the interest that will accrue before they receive your payoff check. It should never be the current balance plus a thousand dollars.

BbqKingRanch

Thanks for that info. They told me 3 mos. as well. I didn't quite understand that, myself. I am planning on refi'ing with my CU. I will look into doing that soon.

frunko1

iTrader: (1)

My state farm agent is telling me I can refinance same day if I want to. I am going to be buying this weekend. state farm really wants my loan so he gave me a great rate. Ford finance is about 8% over 72 month. On the one truck I looked at there as a $4000 rebate difference between going through ford finance or another bank during the purchase.

XD2005

I was reading on another forum about the 3 month statements by the dealerships (I too was told "it would be best if I made a few payments, then refinanced"). From what I've seen, it looks like the dealership takes a hit from Ford Credit if you pay off before a few payments.

I got 4.99% rate from Ford Credit (based on Ford's advertising, it should have been 4.9%, but the dealer apparently decided they needed their 9 bps) and the $1,000 rebate. Plan to refinance as soon as everything is settled.

frunko1

iTrader: (1)

It is $150, my dealer told me about this. I said if he wants the sale he will have to deal with it.

AreL11

I flat out asked my F&I guy about it when I bought my '11. H said they lose a small stipend if there aren't 3 payments made. It does not fall back on the buyer. My dealer deals in large volume so he said they're not concerned about it. A smaller dealer may be and may try to trick you into waiting unnecessarily.

Yippie21

I believe you, but I had no way of knowing at the time that I could TRUST FMC... and in the end... somehow they matched my CU @ 2.9. So I'm good to go. Just shows you though, FMC and the finance guys have more tools at their disposal than I knew of. The explanations of the 3 payment thing make sense too I guess. My finance guy wasn't so candid with me..