Doofus

...through Ford Credit with the new April incentives?

Someone said it was based on the Ford Credit rate and how much the customer would have qualified for on the open market. Is that true? If so, what's the kickback on say 2% open market vs 3.9% for 60 from FoMoCo?

2015F150Platinum4x4

I don't know the answer, but I'm curious as to why you wouldn't just take the lower rate from somewhere other than Ford credit.

jac1304

The reason is rebate money for using ford credit and then refinance for a lower rate somewhere else.

JOSHUAH121

It depends on the amount financed as well as term of loan , and contracted rate. Let me know I can tell you to the penny.

Curmudgeon

Finance kickbacks from the lender to the loan originator (dealer) are known as dealer reserves and typically run 2-4% above market rate, i.e. the dealer receiving the difference between the market rate and the loan rate. According to NADA, dealer reserves are the largest source of dealer sales income, far exceeding profit on the vehicle.

Doofus

Thanks, Joshua. It will be about $15k - $20k on a 60 month note for a Lariat Screw with invoice of $45,150.

What is the contracted rate?

JOSHUAH121

The rate on your contract

JOSHUAH121

Or the rate they quoted. The buy-rate at 60 months with ford is 3.99. The dealer might have quoted you a 4.9 or 5.9 rate. If that's the case they marked the rate up a point or two.

bt_osu

Dealers get either a flat pay for financing if they use the buy rate.. buy rate equals the rate you actually qualified for with no mark up. This can be a small % to only a few hundred dollars it depends on the bank. Where many dealers make money on financing is in lieu of taking the smaller flats they instead bump your rate .5- 3% and depending upon the amount financed this can add up to significant $$$. They would get the difference between what you qualified for say 2% and the marked up rate say 3.5% which would represent a 1.5% mark up in this case.

snobdds

Ford gives the dealer 3% of invoice for the "dealer kickback". So even if your getting the truck at invoice cost, there making 3% off of you.

Ford Credit and the rebates are completely different from the dealer kickback.