Questions for those who took Ford's big rebate w/ crappy APR & then refinanced
09-04-2012, 09:52 AM
#11
There is only a penalty to the F&I dept. IF they marked up the rate from FORD to you. For instance, FORD may be willing to write your loan at 3.9%, but the F&I guy will quote you 6.9%. The dealer will then get paid a large percentage of the difference in interest. Your dealer won't care the least about sticking it to you this way, and you shouldn't care in the least about sticking it back to them. Don't wait.
09-04-2012, 09:52 AM
#12
Please clarify your response, as I've already outlined the facts.
As long as the rate to the borrower isn't "bumped" there is no penalty.
However, most of the time the rate is bumped. Most franchise dealers make more revenue off bumping rates, selling service plans, selling GAP, and on volume incentives from the manufacturer (above and beyond holdback) than they do on selling the auto.
As long as the rate to the borrower isn't "bumped" there is no penalty.
However, most of the time the rate is bumped. Most franchise dealers make more revenue off bumping rates, selling service plans, selling GAP, and on volume incentives from the manufacturer (above and beyond holdback) than they do on selling the auto.
09-04-2012, 10:44 AM
#13
like many here, I refinanced quickly (after one payment).
I went from 6.5% from Ford with the bigger incentive to 1.5% through PenFed.
PenFed is a credit union open to military members and families. I was neither but donated $20 bucks to the National Military Families Association (or something of that sort) as an alternative to join. I don't know their credit underwriting standards, but if you can get approved, I think its hard to beat a 1.5% refinance plus the larger Ford incentive.
I went from 6.5% from Ford with the bigger incentive to 1.5% through PenFed.
PenFed is a credit union open to military members and families. I was neither but donated $20 bucks to the National Military Families Association (or something of that sort) as an alternative to join. I don't know their credit underwriting standards, but if you can get approved, I think its hard to beat a 1.5% refinance plus the larger Ford incentive.
09-04-2012, 11:25 AM
#15
Go Ducks!!
like many here, I refinanced quickly (after one payment).
I went from 6.5% from Ford with the bigger incentive to 1.5% through PenFed.
PenFed is a credit union open to military members and families. I was neither but donated $20 bucks to the National Military Families Association (or something of that sort) as an alternative to join. I don't know their credit underwriting standards, but if you can get approved, I think its hard to beat a 1.5% refinance plus the larger Ford incentive.
I went from 6.5% from Ford with the bigger incentive to 1.5% through PenFed.
PenFed is a credit union open to military members and families. I was neither but donated $20 bucks to the National Military Families Association (or something of that sort) as an alternative to join. I don't know their credit underwriting standards, but if you can get approved, I think its hard to beat a 1.5% refinance plus the larger Ford incentive.
is it 30 days and all auto loan credit checks count as one or 14 days?
09-04-2012, 11:33 AM
#16
This came in handy for me since I decided to open a credit card with them too.
09-04-2012, 11:42 AM
#17
Go Ducks!!
hmm, I don't know as I've never really heard about that. I know PenFed will do a 'hard pull' on your credit, but that report is good for 30 days should you choose to apply for anything else through them.
This came in handy for me since I decided to open a credit card with them too.
This came in handy for me since I decided to open a credit card with them too.
i hit my 14 days on the first.
Last edited by dwysywd; 09-04-2012 at 11:45 AM.
09-04-2012, 11:44 AM
#18
My dealer's Salesman told me I could refinance as soon I found out my Ford Credit account number. Ford credit rates are not competitive so if Ford Credit wanted to keep the loan they would lower their excessive rates.
09-04-2012, 12:43 PM
#19
Do your research and talk to your banks/credit unions. My credit union treats every vehicle purchase as new if it is less than 7 years old. Wells Fargo on the other hand told me that they would treat it as a Refinance even though the vehicle is brand new, because I didn't finance with them immediately. Also, in my state, I have to wait until I get my title to refinance. Montana is a non-title holding state, so as soon as I register my vehicle I will get the title, but I have to wait for it to be processed. This will take 1-2 months. So go talk to the banks you will look at for financing, and you will get a much better understanding of how this process will work for you.
09-04-2012, 01:13 PM
#20
Senior Member
Originally Posted by MrMac
Get pre-approved through your credit union so you know exactly what your rate will be. Then finance through FORD, take your rebate and refinance at your credit union before the first FORD payment is due. You will only need to wait long enough to get your account number and payoff through FORD to refi.
As the CFO of a credit union in KS, I know that most credit unions will treat an auto loan as a new vehicle as long it has low miles, typically under 7,500. You might consider being up-front with the credit union letting them know what you intend to do. They want your loan bad, and will work with you to get the best deal possible.
As the CFO of a credit union in KS, I know that most credit unions will treat an auto loan as a new vehicle as long it has low miles, typically under 7,500. You might consider being up-front with the credit union letting them know what you intend to do. They want your loan bad, and will work with you to get the best deal possible.