Anyone know what the current rates are going for financing through ford credit. I don't have the best of credit but they said i qualified for a tier 4. anyone recently financed at the same tier?

 

I don't know what tier 4 is but here is what I did 2 weeks ago. I had the choice of 0% financing or $2500 in rebates. I had the dealer run the numbers using both options. My credit is basically perfect and my Ford rate was 6.49%. My monthly payments were cheaper with the 0% method, but I chose to finance through Ford for two reasons. One, I have a tendency to pay my vehicles off at least a year early and two, after 3 months of financing through Ford I can refinance. As long as I'm able to refinance at 5% or lower, I end up saving more money than using the 0% financing.

 

You can refi that ford credit loan anytime. Not sure if your dealer said you had to wait 3 months, but there is no pre-payment penalty. I know they make a small commission from FMC if you make at least 3 payments. I paid mine off as soon as I got my info, or about 2 weeks after I bought it.

 

How is 5% better than 0%?

 

It depends on your credit rating.

 

The monthly payment is lower with 5% PLUS $2500 in rebates vs. the 0% with no rebates.

 

I just took 0% instead of 2.99% (through my credit union) + $2500 in rebates because my total cost is lower that way. This will differ based on the final price of your truck though, if my truck was $10K cheaper (for example) then it would have been better for me to take the 2.99 + $2500.

Bottom line: Use a payment calculator and look at what comes out cheaper.

 

I got all the rebates , left the lot and refi'd at my credit union for 2.99% same day

 

Tier 4 is going to be at a higher interest rate. Here is a website that talks about the different tiers.

http://www.refinancetoolbox.com/creditier.htm

 

If you refi within 90 days, your dealer loses their cut.