macchiaz-o
Well-Known Member
- First Name
- Jonathan
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- Nov 25, 2019
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- MY21 J1 Premium RWD SR
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Last year, Ford introduced FordPass Rewards. If you're in the U.S. and you've ever signed into the FordPass app or web site, well congratulations. You're already an FPR member. It's had a shaky start... I've had to contact them to get points credited after having service done sometimes, and I'm still waiting on the Essential Worker points that were offered a few months back.
Anyway... This morning, Ford announced an optional add-on to the FPR program: the FordPass Rewards Visa Card. This is definitely the most confusing/complicated rewards cards I've ever seen. I think the way they've worded the press release and infographic just added to my confusion about how it works.
I've now had a chance to dig into the summary of credit terms from First Bank of Omaha, which helped clear things up. Here's what I'm thinking is the way to get the most benefit from this card. I'd love to know your thoughts and if you've got other clever strategies in mind.
First though, when I'm referring to FPR points, these are "FordPass Rewards" points that are only redeemable towards Ford branded accessories (not dealer/3rd party items), or for maintenance and service at a dealership. 200 points translates to $1.
And when I'm referring to a statement credit, this is a payment made by the bank on your behalf, to your credit card account balance. $1 is worth $1.
So here's a possible strategy:
In the first year (starting from when card account is opened):
OK. This was a complicated post. Congratulation on making it this far... After you've had some time to think it over, I'd love to know your thoughts and any improvements to the strategy!
Anyway... This morning, Ford announced an optional add-on to the FPR program: the FordPass Rewards Visa Card. This is definitely the most confusing/complicated rewards cards I've ever seen. I think the way they've worded the press release and infographic just added to my confusion about how it works.
I've now had a chance to dig into the summary of credit terms from First Bank of Omaha, which helped clear things up. Here's what I'm thinking is the way to get the most benefit from this card. I'd love to know your thoughts and if you've got other clever strategies in mind.
First though, when I'm referring to FPR points, these are "FordPass Rewards" points that are only redeemable towards Ford branded accessories (not dealer/3rd party items), or for maintenance and service at a dealership. 200 points translates to $1.
And when I'm referring to a statement credit, this is a payment made by the bank on your behalf, to your credit card account balance. $1 is worth $1.
So here's a possible strategy:
In the first year (starting from when card account is opened):
- Open card account and make your first purchase (even if it's just a $1 Hot 'n Spicy McChicken)
- first purchase triggers reward of 11,000 FPR points (worth about $55), but they can take a few months to credit them
- While buying MME, pay the maximum amount the dealer allows via FPR Visa; dealer limits on credit cards will vary... might be $500 or maybe a couple thousand
- earn 10 FPR points per dollar spent at dealership or Ford web site (which is worth about 5% of purchase)
- dealership or Ford web site transactions of $499+ qualify for 0% interest for 6 months
- Spend $3,000+ on card within first three months of account opening
- earns $100 statement credit
- spending this much on a single card in a 3 month period might be difficult (it will be for me); so you might want to try to time the account opening so that your new vehicle purchase occurs within this first three month period.
- Spent $6000+ on card within first 12 months of account opening
- earns $200 statement credit (that's unrelated to the $100 credit that might also have been earned)
- Any spending beyond the $6,000 should be on credit cards that offer better rewards, like Discover cashback quarterly 5% categories or the Citi Double Cash (2%) cards
- Use the accumulated rewards points to buy a spare EVSE (mobile charger or connected wall charger) or floor mats or whatever... but note that points aren't redeemable for non-Ford accessories such as window tinting.
- If my math is correct, the best case scenario using the info above would be:
- $55 (from first card transaction) + ~$100 (from dealer purchases) + $100 ($3k spent in 1st 3 months) + $200 ($6k in 1st year) = $455
- $455 / $6000 = 7.6% cashback!
- Charge at least $6,000 and preferably not much more than that amount.
- get a $200 statement credit
- earn anywhere from $60 - $300 worth of FPR points (only redeemable for certain dealership expenses like maintenance, service, and some Ford-distributed accessories)
- the credit card activity keeps FPR rewards balance from expiring
- If you don't think you'll get to the $6,000 spend in typical years, then the FPR Visa is probably not the best card to continue using. But you still might want to benefit from a charge once a year or so (or spend money on maintenance or whatever at a dealership) to keep your FPR rewards balance from expiring.
- Any expenses above and beyond the $6,000 should be on credit cards that offer better rewards, like Discover cashback quarterly categories or Citi Double Cash cards.
- Cash value:
- $200 ($6k spent in 12 months)
- $60 (assumes all of the $6k was in 'other' category that earns least amount)
- $260 / $6,000 = 4.3% cashback!
OK. This was a complicated post. Congratulation on making it this far... After you've had some time to think it over, I'd love to know your thoughts and any improvements to the strategy!
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