Neffster

If you refinance, the interest rate alone is meaningless.
I just refinanced at 1.74% for 60 months and had to pay a few 'fees'.
Another offer was 2.15% for 60 months, sligthly lower 'fees' and the payment was $1 more than the lower rate offer.
It all comes down to the lowest payment for 60 months when refinancing...

gsxr1216

How much were these "fees" and what did they say they were for ??


I have never had a auto loan, or auto loan refi that had any costs or fees associated to it other than the interest rate itself.


Refi on a house they sure get you on fees though!

fstfrd00

6 or 7 years is a long time to pay for anything...

BoozeDaily

iTrader: (2)

I agree. I was doing the budget the other day and couldn't help but look at my $500 truck payment and thinking "It's only 5 1/2 more years." Then I looked at my 5 1/2 year old daughter and thought about how long it's been and everything we've done since she was born. My wife is pregnant again and the baby is due in November. So when this yet to be born child is 5 my truck will be paid off. That seems like a really really long time of making those payments when put in that perspective.

Or more simply, what could I do with an additional $500 per month right now? That $500 would have covered the septic pump that just went out 3 weeks ago. It also would have covered half of my deductible on the roof we just had to replace 2 weeks ago. (Texas storms responsible for both). Not to mention gas, oil, chainsaw blade, time and energy for cutting up and burning downed trees.

FYI- Cottonwoods are garbage. Even if you can painstakingly get them to grow straight, they'll blow over at the threat of a 40MPH gust. Just my experience.

Neffster

$10 title fee, "Handling fee" which everyone had and it varied from $50 to $499 - they just roll that into the loan amount, don't tell you and it impacts your monthly payment. Then there was an account opening fee at a credit union (that I get back when the loan is done)...

Legally they don't have to tell you about their fees if you apply online and you don't ask.

gsxr1216

I wonder if it has something to do with the state you live in? I have never paid fees like that on any of the dozen auto loans I have had here in NY, and man they usually stick it to you pretty good in this state!!!!

theyouthahead

I got 1.95% on a 72 month loan

l3rian

I think we are all in search of the best deal here. So along that line of thinking, going to a dealer and letting them think you have other financing available might lead them to offer the rebates to get you over to Ford financing. Or if nothing else lower the price a little to get you to finance with them. Also, would it be best to hold back a large down payment for similar reasons. They think they will be making more money on the financing and might offer a slightly better deal. Then refinancing and just putting your down payment towards the principle then. I might be over thinking this, but a penny saved is a penny earned.

I have never bought a new vehicle, so I'm trying to get caught up on how this game works.

bjpgolfnut

Personally, I have never put money on down on a vehicle, other than rebates and any equity in a trade.

The only thing that I know from experience on the scenario that you described is that all else equal lets say the vehicle price is $500.00 a month with no money down. The payment would be $400 if you put $5,000.00 down. If you finance the vehicle and monthly payments are $500.00 and you send in $5000.00 for your first payment, the monthly payment required is still $500.00 per month going forward until the loan is paid off. (Because this lowers your principle balance you will pay less in interest over the life of the loan and pay it off quicker)

What I have found with buying a new vehicle is EVERY part of the process is negotiable. The interest rate on financing is no different.

Others have mentioned above, but always figure your out the door price. If you are paying in full with cash it is easy, whatever you write the check for. If you are financing always multiply what monthly payment by the number of payments. So if you think you are buying a $40,000.00 truck but the monthly payments are $650 and you have 72 of them you are really buying a $46,800 truck.

l3rian

Thanks!

Yea, I was over thinking it a little. The entire reason for putting a down payment was to get my monthly payments where I want them.

So it seems to get the best deal, you should finance the entire amount minus trade-in and rebates through Ford to maximize rebates. Then refinance with your lender of choice for the payoff minutes your down payment.