Are there fees for Ford Motor Credit loans?

[sajohnson]

I searched but couldn't find anything,

Are there fees associated with getting a loan at a Ford dealer?

I've left messages for the finance dept at our dealer but haven't heard back.

[bbf2530]

55 minutes ago, sajohnson said:

I searched but couldn't find anything,

Are there fees associated with getting a loan at a Ford dealer?

I've left messages for the finance dept at our dealer but haven't heard back.

 

Hi sajohnson. Through Ford Motor Credit? Not that I have ever heard of or experienced.

 

If a Dealer uses an outside loan source, quite possibly yes. But that should not occur unless an individual has insufficient credit to finance through Ford Motor Credit.

 

Good luck.

[FordBuyer]

1 hour ago, sajohnson said:

I searched but couldn't find anything,

Are there fees associated with getting a loan at a Ford dealer?

I've left messages for the finance dept at our dealer but haven't heard back.

 

I have a Ford Credit loan. I got the 0% for 72 months with no fees whatsoever. And I got it through a Ford dealer. I believe Ford offers 0% on Escape and Edge for sure to those with excellent credit ratings. What's nice is you can manage your loan thru Ford Pass app. Makes it easy and convenient. 

[sajohnson]

17 minutes ago, bbf2530 said:

 

Hi sajohnson. Through Ford Motor Credit? Not that I have ever heard of or experienced.

 

If a Dealer uses an outside loan source, quite possibly yes. But that should not occur unless an individual has insufficient credit to finance through Ford Motor Credit.

 

Good luck.

 

Excellent, thanks bbf.

 

I'm fortunate enough to have good credit and some savings -- I'm considering whether to finance half through FMC or withdraw the additional money from an S&P 500 index fund.

 

As long as the 0.9% rate is still available when our Badlands is delivered in a couple weeks I'll take advantage of that and leave the index fund alone.

 

[sajohnson]

14 minutes ago, FordBuyer said:

 

I have a Ford Credit loan. I got the 0% for 72 months with no fees whatsoever. And I got it through a Ford dealer. I believe Ford offers 0% on Escape and Edge for sure to those with excellent credit ratings. What's nice is you can manage your loan thru Ford Pass app. Makes it easy and convenient. 

 

Great news FordBuyer, thank you.

 

I think the best I can get on a BS Badlands is 0.9% -- still not too bad.  Hopefully that deal will continue into April at least.

[bbf2530]

30 minutes ago, sajohnson said:

 

Excellent, thanks bbf.

 

I'm fortunate enough to have good credit and some savings -- I'm considering whether to finance half through FMC or withdraw the additional money from an S&P 500 index fund.

 

As long as the 0.9% rate is still available when our Badlands is delivered in a couple weeks I'll take advantage of that and leave the index fund alone.

 

 

Hi sajohnson. Assuming you are getting a return better than 0.9% on your Index Fund (jeez...let's hope so?), take the FMC loan, leave the money in the fund and make the monthly payments.

 

When we purchased our 2018 MKZ, Lincoln Motor Credit was offering 0% on their loans (up to 60 months). So we paid off $10,000 on our best member-perks/points credit card (for the points, since we pay it off in full every month anyway) and took the Lincoln Motor Credit loan for the balance. In that way, we were able to keep the balance of the money invested, and pay the loan off at 0% interest over the next 5 years.

 

And if you are not getting >0.9% on your Index Fund? Find a new Financial Consultant. ??

 

Let us know how you make out and good luck.

Edited March 12, 2022 by bbf2530

[sajohnson]

51 minutes ago, bbf2530 said:

 

Hi sajohnson. Assuming you are getting a return better than 0.9% on your Index Fund (jeez...let's hope so?), take the FMC loan, leave the money in the fund and make the monthly payments.

 

When we purchased our 2018 MKZ, Lincoln Motor Credit was offering 0% on their loans (up to 60 months). So we paid off $10,000 on our best member-perks/points credit card (for the points, since we pay it off in full every month anyway) and took the Lincoln Motor Credit loan for the balance. In that way, we were able to keep the balance of the money invested, and pay the loan off at 0% interest over the next 5 years.

 

And if you are not getting >0.9% on your Index Fund? Find a new Financial Consultant. ??

 

Let us know how you make out and good luck.

 

Smart man, and great advice!
 

The money we have easy access to is in a local bank account earning almost zero interest, so I don't feel bad using it as a down payment.  The index funds are 100% S&P 500; another account is 50/50 stock and bond index funds, so it's a bit more stable.  Needless to say, both are down right now so I'd rather not touch them.

 

Ordinarily (as you said) it would make sense to take all the money you can get at 0% to 1 or even 2% or more -- finance the full amount and leave your money invested, earning substantially more. Our situation is a bit unusual in that we have savings but our income (and fortunately, our expenses) is low. So making full car loan payments would be difficult.

 

Even financing about 50% of the total cost may force us to use some index fund money to either continue making payments or pay the loan off in a year or two. My hope is that the market will be looking better at that point. Of course my master plan could backfire...

 

 

 

 

 

[bbf2530]

2 hours ago, sajohnson said:

 

Smart man, and great advice!
 

The money we have easy access to is in a local bank account earning almost zero interest, so I don't feel bad using it as a down payment.  The index funds are 100% S&P 500; another account is 50/50 stock and bond index funds, so it's a bit more stable.  Needless to say, both are down right now so I'd rather not touch them.

 

Ordinarily (as you said) it would make sense to take all the money you can get at 0% to 1 or even 2% or more -- finance the full amount and leave your money invested, earning substantially more. Our situation is a bit unusual in that we have savings but our income (and fortunately, our expenses) is low. So making full car loan payments would be difficult.

 

Even financing about 50% of the total cost may force us to use some index fund money to either continue making payments or pay the loan off in a year or two. My hope is that the market will be looking better at that point. Of course my master plan could backfire...

 

Hi sajohnson. I completely understand. Everyone's circumstances are different. Which is why I always try to convince others to ask for advice if they like...But no one else is living our life, so in the end, we all need to take our own personal circumstances into account and make a decision based on what is best for our life.

 

I wish you the best of luck!

[sajohnson]

22 minutes ago, bbf2530 said:

 

Hi sajohnson. I completely understand. Everyone's circumstances are different. Which is why I always try to convince others to ask for advice if they like...But no one else is living our life, so in the end, we all need to take our own personal circumstances into account and make a decision based on what is best for our life.

 

I wish you the best of luck!

 

Thanks!

 

I've offered people help over the years, but I've found that most of them do not act on it.  They want a "get rich quick" silver bullet. I've always followed John Bogle's advice -- it's not sexy or exciting but it works.

 

I'm just glad my wife and I have options.  Apparently lenders are willing to overlook low income if you put 50% down.

 

I'm reminded of the son of a friend of ours who just HAD to have a particular car.  Even with mom co-signing, the rate as 28%(!).  Then he wrecked the car.  Insurance paid a decent amount, but because the state where he purchased the car does not require lenders to allow early payoff with no penalty, he still owed the full amount due on the loan.  They couldn't pay the remainder (above the ins payment) and mom's credit was ruined.  He was one of the people who asked for advice but did not follow it.