any bankers? got a question.
F150online
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Joined: Nov 1996
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From: Roswell, GA USA
It's funny, I've been thinking about this between basketball game timeouts...
As I was envisioning this scenario, I was picturing the F&I guy telling the customer to do this, not the salesman. RJS put even more perspective on it that this is a "close the sale" tactic.
Another thought...if you are considering going this route, compare the APR of what FMCC is offering you to the APR for a refinance auto loan, which may be higher, from your bank or credit union.
It may turn out that FMCC is offering a better deal, regardless of the rebate
and this all may be a moot point. 
Back to Mich St....
As I was envisioning this scenario, I was picturing the F&I guy telling the customer to do this, not the salesman. RJS put even more perspective on it that this is a "close the sale" tactic.
Another thought...if you are considering going this route, compare the APR of what FMCC is offering you to the APR for a refinance auto loan, which may be higher, from your bank or credit union.
It may turn out that FMCC is offering a better deal, regardless of the rebate
and this all may be a moot point. Back to Mich St....
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Joined: May 2004
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From: florida
i will check, with my bank. thats for sure. thats another reason why i asked here as well, seeing we have many people with many experiences. I will let yall know what my bank tells me as far as refiancing and the sort. if i were to get a loan from FMCC and then refiance through them. 6.9 vs 4.15% is a good bit about a 1.5 to 2k differance in the long run.
F150online
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Joined: Nov 1996
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From: Roswell, GA USA
Q,
If it's not too personal (and not to drive this too off-topic), who is your credit union? I've been getting more and more involved with credit unions since the introduction of our Ownersite for Credit Unions and wanted to find out if I am familiar with your's. If not, that's fine, it might reveal where you work, live, etc, etc and I definitely understand.
If it's not too personal (and not to drive this too off-topic), who is your credit union? I've been getting more and more involved with credit unions since the introduction of our Ownersite for Credit Unions and wanted to find out if I am familiar with your's. If not, that's fine, it might reveal where you work, live, etc, etc and I definitely understand.
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Joined: Mar 2002
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From: NH
I can personally attest to this being a great deal as far as signing for a loan through FMCC and then refinancing right after. I can also tell you that you will not pay any fees or charges to FMCC for refinancing with the exception of what was stated as a small interest fee, depending on how long you wait to refinance.
I had to do this on my 2003 Lightning. Since the dealer was selling a new Lightning for $27,500 they figured they would screw me on the interest. I have good credit and the truck prior to the Lightning was a 2001 with a rate of 2.9% with FMCC.
With the Lightning they wanted 8%. My credit was even better then when I got the 2.9%. I did a lot of research on how dealerships work. First is you will never know just what Ford approved you at as far as credit rate. They, Ford, approve you for a particular tier and that tier could have a rate of say 3% - 5%. The dealer is free to charge you any interest rate between 3% and 5%, or higher if they think they can get away with it.
This is how a dealer makes money, among other methods. I have no problem with a dealer making money because it keeps them in business but I hate how dealers, any dealer, have to be sneaky and lie about it. My dealer tried to tell me the 8% came right from Ford.
So, instead of screwing with them or losing a good deal of $27,500 for a $33k truck I signed the loan for 8% and 3 days later refinanced it for 1.9%. Ford lost money and the dealer lost money. The loan was paid off completely and I never had to pay any fees, not even an interest charge.
I had to do this on my 2003 Lightning. Since the dealer was selling a new Lightning for $27,500 they figured they would screw me on the interest. I have good credit and the truck prior to the Lightning was a 2001 with a rate of 2.9% with FMCC.
With the Lightning they wanted 8%. My credit was even better then when I got the 2.9%. I did a lot of research on how dealerships work. First is you will never know just what Ford approved you at as far as credit rate. They, Ford, approve you for a particular tier and that tier could have a rate of say 3% - 5%. The dealer is free to charge you any interest rate between 3% and 5%, or higher if they think they can get away with it.
This is how a dealer makes money, among other methods. I have no problem with a dealer making money because it keeps them in business but I hate how dealers, any dealer, have to be sneaky and lie about it. My dealer tried to tell me the 8% came right from Ford.
So, instead of screwing with them or losing a good deal of $27,500 for a $33k truck I signed the loan for 8% and 3 days later refinanced it for 1.9%. Ford lost money and the dealer lost money. The loan was paid off completely and I never had to pay any fees, not even an interest charge.
