I financed through Ford Credit just to get the extra grand off with the incentives, but I'm not liking this 8.99% interest rate. Generally I do long term loans so the minimum payment is smaller, but I try to make larger payments throughout to get it paid down faster.

I financed out $30,100 for 72 months which comes out to $544 a month, but I can go through my bank for 5.9%, or better yet my insurance now has vehicle loans and I can get 4.9%, which saves me $60 a month and $4320 over the term if I just make minimum payments.

So onto my question... I couldn't find any stipulations on paying off Ford Credit right away, but are there any hidden rules to accepting the incentives and re-financing with another lender? I've already been pre-approved at my bank, but I'd like to get this 4.9% right away.

Thanks!

 

Your dealer more than likely told you that you can't refi withing the next 45 or 90 days. This is total NONSENSE!!! What they're really saying is that if you refi it before that timeframe, then THEY (the stealership) will get penalized

Nowhere in the FMCC contract does it stipulate any restrictions against refi'ing or paying off early.

If you can get a lower rate, go for it. The longer you wait, the more money you waste.

 

I spent the last hour reading through all the paperwork with Ford Credit, and can't find anything anywhere. The dealership also did not say anything, but the reason I asked is because I remember seeing a post about this some time back.

Thanks for the reply... my sentiments exactly.

 

I did that, jus tto get the incentives..then 30 mins later, went down to the local credit union to get a better rate.

 

My dealership was pretty honest with me...they told me to wait a week to ten days for everything to get into Ford's system, then feel free to refi. According to them, no penalty to refi...so, the $1000 is yours. Ford is rolling the dice that most won't do so...and, most won't.

I'm doing a refi next week.

 

That's my understanding too. I did the same thing with GMAC on my current truck. Dealer told me not to refi for first 90 days or they'd get $1000 penalty from GM....nothing in my contract though. I worked with the dealership though to use GM's high credit risk finance group which didn't charge the dealer the penalty and refinanced as soon as it got into the GMAC system. Dealers will play the game if the purchase depends on it.

vroten

 

Brought my truck in Feb '05. My dealer "tried" to tell me I had to wait 6 months before I could pay it off. I called Ford Credit. They said I could pay off the loan as soon as I got the first invoice. You got to send the final payment to a different address when you pay it off so they'll notify the DMV and send you the title.

I paid cash for my truck. Basically, the minimum $8000 24 month loan I took out to qualify for the $1000 rebate cost me exactly $38.07 in interest.

 

I always thought if you decided to pay off your truck early your lump sum payment was your # of payments remaining times what you pay per month, and since your monthly payment already has the intrest calculated into it, if you pay off early you're paying all of the intrest for the full term anyways.

 

Yep!! That's total B.S.!! I just bought my wifes new one and went to the local credit union the next day.

It takes approximately thirty to ninety days for the dealer to get the kick-back from FORD. If you refinance in that time, they (the dealer) loses out.

As previously stated -- look at the contract..."You may pay-off you loan at anytime without penalty." As also stated by a representative form Ford Credit when I called with the same question on Monday.

 

you should not be paying interest for the whole loan if you pay off early

 

Those were the old days when creditors could "steal" from you. Under usery laws, they are not allowed to do that in most states. You only pay for the time you use the money at the contract rate.

 

Correct me if I'm wrong, but I didn't think there was an advantage (interest) to paying off your loan early because interest was already factored into your loan amount. Is this right?

Ooops sorry, just saw Blue Jay's response.

 

i just paid mine off after 3 months and only paid interest for the 3 months

 

I agree. We did the same thing on our Expy. Financed through Ford and then paid it off using our home equity line of credit.

 

At 8.99% i would not walk to my credit union or bank...Id run!