Do you really think they would forfeit the deal over this arbitration clause? I refused to sign it. Then I found it... on the back side of the sales contract!!
Not happy about it but the deal is done. I will be on the lookout for this BS in the future.

 

Probably not. I freely admit I had a weak moment and blinked first.

 

Figured I'd give my recent experience. I got the $1,000 rebate for financing through FMCC. I have great credit and the rate for 72 months came out to 4.49%. My local credit union is offering 2.99%.

The salesman (fleet manager) told me that if I paid the loan off before I made the first payment, I'd pay a $125 processing fee. He also told me that if I paid the loan off before the third payment, I'd lose the $1,000. Frankly, he's either super-confused or he lied. He did my loan documents for me and the documents specifically say "Prepayment: If I pay off early, I will not have to pay a penalty".

There is no written mention anywhere in any of my documents that the $1,000 incentive goes away if I pay the loan off at any time. I have analyzed dozens of legal contracts in my career, and "if it ain't in writing, it don't apply".

Frankly, I'm a little PO'd - I guess that I'm a little naive to think that a car salesman is going to be totally honest with me, but it sucks to be flat-out lied to. Oh well....I'll be paying the loan off in a week or two.

 

I have not looked back at all the posts, so I am probably repeating info. As I recall, it can be paid off imeddiatly by the buyer with no penalty but if it is paid off prior to 3 payments being made, the dealer does not get the $1000 rebate. That is why they lie to you.

 

Yea cause I was told 4 months or I would be billed 1k is this true guys? seems otherwise based off of this forum. I had a pretty terrible experience getting my truck from the dealer, so I think its amusing that they lied yet again. I work for a bank I can refi monday if thats the case.

 

The best way to know for sure is to contact Ford Credit, ask them.

 

There is no 1 month or 3 month penalties or other b.s. I have done it. I paid my truck off the next week. I wanted the extra $1000 Ford credit $$. The only thing is the dealer doesn't make money from Ford if the loan gets paid off before 3 months. That is why they tell you wait 91 days. I'd especially savor the refi if the dealer gave you a bad time. Even better, tell them what you are going to do just because of their shady ways.

I actually called Ford Credit the next day after I bought the truck and asked if I could pay my truck off before these "time frames" the dealer was trying to sell me. She said "Yes, you can pay your truck off whenever you want with no penalties".

On a side note, how dumb is Ford Credit?? If they would just lower their rates to match these other finance companys they'd make a ton of money. Instead we are getting an extra $1000 and then flipping the loans to somebody else to make $$ on interest.

 

I totally agree. Not only are they not going to collect the interest, the way they pay the dealer (dealer only gets the $ after the loan is outstanding for 90 days) encourages the dealer to lie to customers. Why would Ford want to have a pay structure for dealers that makes them lie to customers?

 

They are banking on people being lazy or misinformed. And it probably happens more than u think.....

 

I agree with that last quote Gerrard but it is also my understanding that FOMOCO is categorized as the same entity as Ford Motor Credit so when S+P and Moodys downgraded the rating on FOMOCO it also downgrades the credit worthiness of Ford Motor Credit. That is why they have higher rates then anything in your local area. My rate is more than 3 points higher then what it could be at my bank.

My experience with the dealer was terrible as my previous vehicle had been totaled and I was simply trying to get into something to replace it. I knew what I wanted and showed up to the dealer said this is what I want (XLT S'Crew 5.0 w/ Chrome Pack and No sirius radio and the 3.55 rear diff) and I was pretty lenient towards colors gave them 4 I would take, and said I dont care about test drives so don't waste my time I have a quote on the truck I wanted and I came to you cause you were adamant about me coming here.

Long story short I was told that was a rare truck because of the 5.0 because FOMOCO is pushing the ecoboost and barely trying to sell that particular setup. Got up to leave after saying I don't want my time wasted again and they said hold on maybe we can find that truck. They came back asked me if I liked silver, I said yes they matched the quote I had but they had to get it from a dealer in Ct. I was told I could pick the truck up Thursday night at 7. I had the agreement and made a deposit on the truck that Sunday. Thursday night I get a call around 5 saying the truck is stuck in traffic but I can come in and sign the papers. Well I flipped my **** on the salesman and I am usually pretty easy going but that was unacceptable to have a week to get the vehicle and they dropped the ball. I told them I was close to walking out on the deal. Finally they have everything ready for me, on MONDAY. I was told the truck would be ready by 12, they called at 11am wondering who my insurance agent was. I get to the dealer at 4pm and boom no sticker. Plates aren't on it yet annnnnnnnnnnnd they lost my spare key. I have never been so ripsh**t in my life. Poor time management and I think they took they deal on the truck because it was the 2nd or 3rd to last day in the month and just wanted to move another vehicle. They probably made hardly anything on it and weren't really interested in giving me the full attention a customer deserves.

So yea, rant over but if I can keep 1000 dollars out of their hands and lower my interest rate and put the money towards the principal, I will certainly do that. I was told by the dealer there was no penalty for paying early however he was adamant about telling me I would be billed for the 1000 if I refinanced before 4 months. I did the math I still save over 700 dollars off the price of the vehicle if I wait the 4 months but I will call Ford Motor Credit tomorrow and confirm that I will not be billed for the rebate.

 

I have re-fi'd the Ford offer on two occasions.

For both, the Ford loan had barely been cleared and assigned to me before the new Credit Union loan had cleared.

In the last case, the truck I had purchased was miss-represented to me so I returned it for another... that loan was a disaster in the sense that I had already re-financed it before the truck swap was completed so my Credit Union had paid off the loan for the wrong truck.

Fortunately my Credit Union was great and worked through the 2nd re-fi on the bad payment.

So the end result is - so long as Ford hasn't changed their "no penalty for early payment" clause then you can pay it off as soon as your new source can deliver the money.

Get your rebates, re-fi, then drive.

 

i got the 3.5% on 36 months not to bad so i reckon ill just stay at ford

 

I refinanced before the first payment was due with no problems. The dealer asked that I make 3 or 4 payments, but I told them that I couldn't make that promise. Just refi, you won't be penalized.

 

You won't but I think you just cost your dealer a grand. If you plan to do business with them again, I think it wouldn't be a big deal to honor there request. I've bought probably 20 vehicles from the same Salesman, at 3 different dealerships, and was told it wouldn't cost me a dime to refinance but Ford would take the $1000 rebate from them.

I can wait 3 payments, besides they wrote me at 3.9% for 72 months on a 12' F150 Supercrew FX4.

 

In my case, I had a good experience on the truck ordering process, the sales paperwork, and the dealer's trade $$ on my old truck. I financed the minimum $$ req'd to get the $1000 and paid off all but $50 on the loan before the first payment due date (the dealer recommended that). I'm OK to carry the remaining little loan balance for 3 months, to let the dealer get his $$ from FoMoCo.