another order question/comment

[armyturtle]

It isn't just $3K. Use an auto loan calculator and see how much extra in interest that $3K costs you over 5 years. About an extra $3500 at 4% interest.

If you're paying 4% interest, you either have terrible credit, or need to join a credit union. Mine is at 2.25%.

 

[nicul15]

or you could look at it like taking that $3k and investing it for more than 4-8% per year. then what does that cost you?

 

[Shepherd]

Where are you making $3k investments at 8%? I want in!

 

[VortexTed]

If you're paying 4% interest, you either have terrible credit, or need to join a credit union. Mine is at 2.25%.

Actually I have great credit, almost 800 score. Audi was charging me around 4% on both of my cars. One loan was through Chase Do you get a loan through the credit union and have them contact the dealer to complete payment? I've always done my financing at the dealership because it's easy.

 

[pughde]

Credit Union 1.69% for 60 months, 1.99 for 72.

 

[Shepherd]

Contact your credit union, get pre-approval for a certain dollar amount at the best rate available and then go tell the dealer what you can pay for the vehicle. If your credit score is as good as you say it is - you're overpaying for credit.

 

[guernsej]

Where are you making $3k investments at 8%? I want in!

Lending Club is one option

 

[armyturtle]

Actually I have great credit, almost 800 score. Audi was charging me around 4% on both of my cars. One loan was through Chase Do you get a loan through the credit union and have them contact the dealer to complete payment? I've always done my financing at the dealership because it's easy.

Ya, don't let the dealer handle shit. Sorry, I didn't mean to offend on the credit score thing actually - that came off a bit too snide. What the other guy said. You get pre-approved at the amount you'll need with your credit union. Then get final out the door amount from your dealer and your credit union will cut a check for the amount. Mine will actually overnight the payment or give me a cashier's check to take in with me.

The only time you might not want to do this is if the dealer is offering some type of a cash-back incentive for using Ford Motor Credit. I was looking at a 2016 platinum before and they were offering $1000 more off the truck if I used Ford Credit. If I was going to buy that platinum I'd go ahead and go through Ford credit to get the $1k discount. Then the next day I'd go refinance it through my credit union at their rate (because the ford credit rate was stupidly high to get the discount).

However that doesn't apply on the raptor. There won't be any cashback incentives, even for using Ford Credit. So remove them from the financing equation and go only through your credit union.

 

[yenrod]

Ya, don't let the dealer handle shit. Sorry, I didn't mean to offend on the credit score thing actually - that came off a bit too snide. What the other guy said. You get pre-approved at the amount you'll need with your credit union. Then get final out the door amount from your dealer and your credit union will cut a check for the amount. Mine will actually overnight the payment or give me a cashier's check to take in with me.

The only time you might not want to do this is if the dealer is offering some type of a cash-back incentive for using Ford Motor Credit. I was looking at a 2016 platinum before and they were offering $1000 more off the truck if I used Ford Credit. If I was going to buy that platinum I'd go ahead and go through Ford credit to get the $1k discount. Then the next day I'd go refinance it through my credit union at their rate (because the ford credit rate was stupidly high to get the discount).





However that doesn't apply on the raptor. There won't be any cashback incentives, even for using Ford Credit. So remove them from the financing equation and go only through your credit union.

Yes! I could not have said it much better. Bought my '14 lariat through Ford only to get all of the incentives and rebates - paid 3 months and went to credit union for 1.79 @ 72! But like armyturtle said, there will be no "incentives" or discounts so it is best to get approved with a much better rate from a credit union or the like.

 

[VortexTed]

This is all great info. The difference between 4% to 2% over 5 years is $3647.
I thought I was getting a fair rate at the dealership.

Thanks for the tip guys, always learning new cool stuff on this forum

I don't belong to a credit union and I'm a self employed business owner so not sure how I can get a membership but I'll start researching this. Maybe I need to ask some friends for a referral or something.