Refinancing after vehicle purchase

[txpitdog]

Crunching my numbers this evening preparation to close on a truck tomorrow. Ford is playing lots of cute games with nested rebates and financing. If what the guy said this afternoon as far as rebates go is true, I should be able to capitalize on 2.9%@72mos. If he’s a lying sack of crap, then I’ll take the $2500 instead, in which I then expect them to stick me with 7-9%. I can get 3.8% from my bank, so I can get the $2500 and accept the horrible interest rate from Ford then refinance to 3.8% after closing the deal.

I’ve never taken this route so are there any fees or other I need to pay close attention to? I know to read the contract carefully for early payoff penalties, but are there any fees associated with the new loan that might offset any savings from the lower interest rate?

[Walker]

I think the CU will classify it as a used vehicle and have a higher interest rate over new

[M16]

Why wouldn’t you take the $2500 rebate and get your own financing? No reason to finance thru them.

[LWD]

If you want to finance with your bank, do it up front for the reason Walker stated and based on the concerns you mentioned.

LWD

[nursejenn]

Why wouldn’t you take the $2500 rebate and get your own financing? No reason to finance thru them.

If you want to finance with your bank, do it up front for the reason Walker stated and based on the concerns you mentioned.

LWD

A lot of rebates, especially through Ford, require financing with Ford in order to get...

[oktx]

I told them upfront what I was going to do. I took the added money for financing with Ford, then I financed it with my bank the next day. Ford said, do whatever you want.

[mkk]

I told them upfront what I was going to do. I took the added money for financing with Ford, then I financed it with my bank the next day. Ford said, do whatever you want.

This^^^^^^^^^^^^^^^^^

[bakin7005]

Crunching my numbers this evening preparation to close on a truck tomorrow. Ford is playing lots of cute games with nested rebates and financing. If what the guy said this afternoon as far as rebates go is true, I should be able to capitalize on 2.9%@72mos. If he’s a lying sack of crap, then I’ll take the $2500 instead, in which I then expect them to stick me with 7-9%. I can get 3.8% from my bank, so I can get the $2500 and accept the horrible interest rate from Ford then refinance to 3.8% after closing the deal.

I’ve never taken this route so are there any fees or other I need to pay close attention to? I know to read the contract carefully for early payoff penalties, but are there any fees associated with the new loan that might offset any savings from the lower interest rate?

Done it with my credit union many times. Took Ford's money for using their finance and swap it over to the credit union couple weeks after. No fuss.

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[M16]

A lot of rebates, especially through Ford, require financing with Ford in order to get...

Yea, I’d tell them to keep it if they told that to me.

[HoustonHunter]

If you decide to take their note then refinance, MAKE SURE THERE IS NO PREPAYMENT PENALTY!

[BuckyBevo]

Pretty rare to have a PPP on a car note but definitely make sure. Also, do not get the GAP insurance through Ford. It's a PITA to get the premium refunded.

Here's another tip: if you time it right, you can go 3 maybe 4 months before making your first payment. I did exactly this with my last car purchase.

[pervis]

Texans credit union 2.68 72 months

[Acameron52]

They’re all sleezy!

[pervis]

Finance thru Ford. Pay the first payment. Within the second month refinance. That's what I did

[cwbow]

I have done it a few times with my credit union and always painless and a better rate!