Refinancing
02-22-2012, 03:29 PM
#21
It sounds reasonable what the bank is doing. they would be silly to value the truck using MSRP. First year depreciation is also very steep.
by the way, i would never sign up for a 7% loan to purchase a depreciating asset just to get a financing incentive. that might be an indicator you can't afford your truck.
by the way, i would never sign up for a 7% loan to purchase a depreciating asset just to get a financing incentive. that might be an indicator you can't afford your truck.
Why not take advantage of the additional 1k incentive? Granted, if that is what you are doing, you should look into the refinancing situation before signing with FoMoCo.
Also, in no way whatsoever does taking advantage of additional incentives indicate that one may or may not be able to afford the vehicle. I'd rather keep the thousand dollars in my pocket than the dealer/manufacturer's.
Anyway, most banks/credit unions will consider such a recent purchase a "new car" even if you are refinancing. Some may not loan 100% of the value though, so you need to shop around. Definitely take in all of your documentation from original purchase and the window sticker. Such a new vehicle should still be considered "new" in the eyes of a lender.
Every lender I have dealt with considers MSRP to be the "value of the vehicle". So if they see it as a new purchase, they have no problem loaning MSRP. Unfortunately, every lender is different, so YMMV.
Best of luck to you.
ALSO: Don't fall for the "you have to make 3 payments" BS. Refinance as soon as you want. I waited two or three weeks, called Ford Credit to get loan information, then went local and got 3% for 60 months (it's now lower, of course
).
02-22-2012, 03:33 PM
#22
Senior Member
My thinking is the banks don't want to get in the same boat as in the 08 financial crisis.They have to cover their butts in the event of another mass slowdown of the economy. A lot of places now you have to prove you don't need the loan you are in effect applying for.
02-22-2012, 04:05 PM
#23
Senior Member
Originally Posted by cwrose
-1
Why not take advantage of the additional 1k incentive? Granted, if that is what you are doing, you should look into the refinancing situation before signing with FoMoCo.
Also, in no way whatsoever does taking advantage of additional incentives indicate that one may or may not be able to afford the vehicle. I'd rather keep the thousand dollars in my pocket than the dealer/manufacturer's.
Anyway, most banks/credit unions will consider such a recent purchase a "new car" even if you are refinancing. Some may not loan 100% of the value though, so you need to shop around. Definitely take in all of your documentation from original purchase and the window sticker. Such a new vehicle should still be considered "new" in the eyes of a lender.
Every lender I have dealt with considers MSRP to be the "value of the vehicle". So if they see it as a new purchase, they have no problem loaning MSRP. Unfortunately, every lender is different, so YMMV.
Best of luck to you.
ALSO: Don't fall for the "you have to make 3 payments" BS. Refinance as soon as you want. I waited two or three weeks, called Ford Credit to get loan information, then went local and got 3% for 60 months (it's now lower, of course
).
02-22-2012, 04:27 PM
#24
For clarification, i agree with taking an incentive if you already know you can get a better rate. But if there is any risk to getting a better loan, you're stuck with an insanely high 7%, which is not worth an incentive. and they still check your credit score. it seems a good a good credit score would get you a lower interest rate. if your credit score translates into a 7% rate i would take that as an indicator i should shop for a cheaper vehicle.
02-22-2012, 04:42 PM
#25
Tommy
Join Date: Jan 2012
Location: Denver, working in N. Dakota
Posts: 903
Likes: 0
Received 29 Likes
on
28 Posts
I am looking into refinancing my loan on my 2011 F-150 3.5L FX4 with the luxury package and went into Numerica Credit Union yesterday afternoon to get the paperwork started. While I was in the bank the loan officer informed me that everything looks good and that he would call me later in the day on the decision (also said there is a slim chance of it being denied). A couple hours later he called and informed me that the loan had been denied due to the value of the truck being much lower than the amount of the loan.
When I bought the truck the sticker was $44,500 and I ended up paying $38,094 out the door. Basically I have made 3 payments and have a payoff of just over $37k. The credit union is saying the truck right now (bought it in Oct. 2011) is only worth $31,500. They use NADA to value the truck. When I go on NADA.com and book out the exact truck I have it comes out at $38,850. Just curious if anyone has run into this before and if you have any advice on what I should do next. Right now I am financing with Ford Credit at 7%.
When I bought the truck the sticker was $44,500 and I ended up paying $38,094 out the door. Basically I have made 3 payments and have a payoff of just over $37k. The credit union is saying the truck right now (bought it in Oct. 2011) is only worth $31,500. They use NADA to value the truck. When I go on NADA.com and book out the exact truck I have it comes out at $38,850. Just curious if anyone has run into this before and if you have any advice on what I should do next. Right now I am financing with Ford Credit at 7%.
The following users liked this post:
jcsjr66 (02-19-2014)
02-22-2012, 05:04 PM
#27
Senior Member
Wow! 
7-9% through Ford Motor Credit is outrageous! That's more than my Mortgage rate. I've never bought a vehicle with that kind of interest rate. Currently my '11 is through FMC @ 0% for 60.
Like others said, make sure all the options are included. Maybe check another bank. Good luck with the refi.
7-9% through Ford Motor Credit is outrageous! That's more than my Mortgage rate. I've never bought a vehicle with that kind of interest rate. Currently my '11 is through FMC @ 0% for 60. Like others said, make sure all the options are included. Maybe check another bank. Good luck with the refi.
02-22-2012, 05:17 PM
#28
Senior Member
Originally Posted by pappamike
my dealer told me to make one payment to ford then refinance. Thats what I did and had no problem. I'm in Illinois.
02-22-2012, 05:18 PM
#29
Official Member: Vast RWC
Wow! 7-9% through Ford Motor Credit is outrageous! That's more than my Mortgage rate. I've never bought a vehicle with that kind of interest rate. Currently my '11 is through FMC @ 0% for 60.
Like others said, make sure all the options are included. Maybe check another bank. Good luck with the refi.
7-9% through Ford Motor Credit is outrageous! That's more than my Mortgage rate. I've never bought a vehicle with that kind of interest rate. Currently my '11 is through FMC @ 0% for 60. Like others said, make sure all the options are included. Maybe check another bank. Good luck with the refi.
Agree.... I bought mine last September and was able to get 1.9% for 72... that was hard to pass up....
02-22-2012, 05:24 PM
#30
Senior Member
Originally Posted by cwrose
Alright, yeah, that makes a bit more sense. However, FoMoCo only offered me a 6.49% rate for 60 months with an 800 credit score and no loans other than a mortgage that makes up about 5% of my annual gross income. Instead of battling Ford, I just took it and refinanced locally (which was already set up prior to the purchase).
