Ricktwuhk

A 7 year loan is a very, very long time... I generally would never go past 5 years. But yes, your reasoning is correct, although I think your math is off a bit.

You compare the regular rate (used to be 4.99%, now it's over 5%) with the discounted rate, then compare the rebates. The difference in the rebates is what you're losing by taking the lower rate.

Right now, for a 60 month loan, that would be $1,750 in my region. So then you could compare the Ford discounted rate with the credit union discounted rate, and see if they were closer than $1,750 apart over the 5 years in this case. They would be closer usually, which says ok - take the higher Ford rate and refinance and make $1,750 more. Or, if you can afford to (and the economics work, i.e. vs. investing in the market), take the higher Ford rate and then pay it off.

Ricktwuhk

You need to do more research...

https://www.penfed.org/learn/ways-to-become-a-member - $17 to join an organization that gets you membership

Blows away DCU's rates for SOME loan periods.

BarmanBean

iTrader: (1)

Lightstream. They also have the benefit of being an unsecured loan so you actually get your title as well.

Ricktwuhk

I STRONGLY recommend that people actually visit these sites and look at the rates. Some recommendations aren't close to competitive. Also, note that rates shown are usually for the best credit scores.

PenFed 36 month 2.49%. LightStream 3.59%
PenFed 48 month 2.99%. LightStream 3.69%
PenFed 60 month 3.24%. LightStream 3.69%
PenFed 72 month 3.49%. LightStream 4.54%
PenFed 84 month 4.49%. LightStream 5.14%

BarmanBean

iTrader: (1)

Absolutely shop around. At the time when I purchased my truck LightStream happened to be the lowest. Oddly enough, I got the lowest rate there by going through LendingTree to get the quote. By doing it that way the rate was over a full percent lower that what was given if going directly to the LightStream site. Penfed wasn't competitive at the time.

SixShooter14

So what rates are you guys getting from Ford Credit?

I got 4% for 60mo. from Ford in April 2016. I'll have it paid next summer. Really no point in trying to refinance.

FWIW, I did check with State Farm last year and was offered 1.9%. But after doing the math, It would only have saved me about $400...so I didn't bother.

Bfazona

Your response was to a thread that is over two years old, so rates have changed significantly since then.