What does it take to qualify for that? By financing 4yr options plan and $500 downpayment plus the $2500 cash rebate from Ford finance.... What should you expect?
There's no simple answer to the qualification question, there are too many variables involved. It's not as simple as X FICO score with X amount financed = Y Tier, it just doesn't work like that.
Negotiation never happened. Dealer said "I got 20 people waiting for your car" .... That is the APR. I will contact Ford Credit as unlike the dealer, they don't get a markup advantage. So, perhaps ask Ford Credit to modify the rate or at least explain why they are about 1 point higher then they should be. The other variables would be nice to know, as the application was submitted to Ford in advance and it stated the estimated interest rate for my situation is 2.5 less then what the dealer offered as "this APR is from Ford, and it was written up on a xls spreadsheet not from Ford"
That’s a lot to unpack.
That must have been what happened to me yesterday. I bought my Mach-E GT and they would only give me 3.4% on the Ford Option plan, even though my credit score is above 800. I went ahead and took it to get the $1,000 incentive. I had already checked with my credit union and they will refinance it at 2.09% for 72 months.
Exactly. Thanks for the info. One last thing. The dealer also said there is no pre-payment penalty but I should not refinance until after the fed tax credit as it would be treated as a used car and cause issues with the IRS. I wonder if I could pay the entire balance of the 4 year options off and keep the balloon in year 4 as my option to keep, get rid. That maneuver without prepayment would minimize the interest paid to however many months will have passed only.
Your dealer is making this up.
Yep. I wish I had leverage to walk but the fact they sold it at msrp and no add-ons they were wanting to make money with the loan. I should have paid cash.
I had my check book. They probably would have told me "oh we don't accept personal checks" . The bank is closed to verify... so ...
That's fine. You're better off doing Options over cash anyway so you can get the incentive. Feel free to pay the whole thing off or refinance at any point. It won't have anything to do with the tax credit.Yep. I wish I had leverage to walk but the fact they sold it at msrp and no add-ons they were wanting to make money with the loan. I should have paid cash.
Makes sense as the title is in my name and the issue with tax credit is solely with the title name change. This dealer puffing on several fronts and during the process -- that is told to the general population without truth is disturbing. I was told repeatedly I was the smartest buyer they had in a while asking all of these specific questions knowing if it doesn't make sense it isn't truth. Yet I was willing to put up with it all as a) I got the car and b) it was at MSRP whereas two other closer dealers are asking $6K minimum. Thanks for the replies. Appreciated. It is great to hear about everyones experiences and call out this untruth that for decades dealers have gotten away with.
The loan being paid of has absolutely zero effect on the Fed tax incentive, but can effect the dealer's bottom line if paid off within 3 months. I'm going from memory here but I believe @hybrid2bev mentioned a long time ago that paying off the options before 3 months leads to a chargeback to the dealer for the options "cash back" incentive. So they are lying to you so you won't pay it off before 3 months so they don't get a chargeback.
Well not angry. Just concerning for the other folks that just believe it all. I expected this yet the one thing I wanted truth was to pay at MSRP and no add-ons. Got that. I can go either way, payoff or just refinance... I will await the first finance statement. Puffing, the legal term for lying as a sales person. Thanks for the info, I suspected confirmation of some kickback, but a chargeback... hmm.
As an FYI, I ordered my car in Sept. and was told that option plan rebate was 2500 and int rate of 2.25 here in NY
Sound like BS to me. A loan payoff has nothing to do with the fed tax credit
