Is this decent deal on 2017 XLT with 202A and Sports Appearance Package?

[llomll]

Local dealer has quoted me out the door (OTD) price of $37,259.00 including tax, license, registration.

This price is for 2017 XLT, Ingot Silver Metallic with 202A package, XLT Sport Appearance Package, and XLT tech feature bundle.

Is this a good deal in your opinion?

The only catch is that I have to finance thru Ford @ 4.99% APR even though I have 800+ FICO. The reason is that Financing thru Ford gives me more discount. Dealer said that once I get my first moth statement, I can go to my credit union and set up loan with them. They will pay off Ford and that's how I can work around the higher APR.

Does this make sense? I am looking forward to your opinions.

Thanks in advance.

 

[BKennedy]

Make sure there is no penalty for paying off the loan within the first year of financing.

 

[llomll]

Make sure there is no penalty for paying off the loan within the first year of financing.

Thanks..Good point. I asked the dealer about that and he said in state of California there is no early payoff penalty. However, I will be sure to read the fine print prior to signing any paperwork.

 

[BKennedy]

Check with your financial institution to see if this is going to be a good deal for you. I got a car loan a few years ago for 0.8% on a five year loan. It wasn't worth it to even put a down payment on the vehicle since the entire loan will cost me less than $1000 in interest.

 

[thefranchise713]

FMCC tends to be a prick with the high interest rates.

That makes sense and my last financing opportunity with FMCC didn't have a prepayment penalty, but the issue is how long FMCC takes to send out the first bill. Even if you call them, you can't pay the bill until it generates and the clock is ticking on the interest--so your "discount" is eroding the second you put pen to paper. In my case it wasn't a huge amount, but it still cut back said discount.

Keep in mind as well if you're financing through FMCC then the CU, you're pounding your credit report with two hard inquiries alone.

 

[Exit32]

Earlier this month, I took advantage of the $500 cash-back offer from Ford Credit by financing my 2018 Explorer Platinum. The day after I took delivery, I was able to pay off the loan at the Ford Credit website. Had to call Ford Credit to get my account number, but no problem paying the loan in full. In my opinion, it's worth the minor hassle to get the $500.

 

[thefranchise713]

^ That's awesome. My experience was a little dated, circa 2014, but glad to see they've caught up.

 

[llomll]

Thanks guys...that makes sense. If I do sign the deal - I will be sure to pay it off earliest. I think its a good idea to pay it off online and not wait for the paper bill to arrive.

Any thoughts on the OTD price I have gottten? Is it good, Is there room to do better?

 

[peterk9]

Local dealer has quoted me out the door (OTD) price of $37,259.00 including tax, license, registration.

This price is for 2017 XLT, Ingot Silver Metallic with 202A package, XLT Sport Appearance Package, and XLT tech feature bundle.

Is this a good deal in your opinion?

Thanks in advance.

Welcome to the Forum.
The question is are you happy with it? I only rely on my own opinion when buying a vehicle. Everyone has different circumstances that may affect their opinion on a deal but only you know your own situation. If you are happy with the deal then it's a good deal for you.

Peter

 

[Chris-74]

I bought my ‘17 XLT in September 2017 for what works out to US$39,900 OTD with today’s exchange rate (I’m in Canada). Includes 3.5 NA, 4x4, 202A, sport appearance, tech package, moonroof, class III towing, and all weather mats.
Promos at the time were employee pricing and Costco discount, and this was near the start of the model year. Sales taxes in my neck of the woods adds up to 12%.

 

[bbwb]

One other thing to check into is when you pay off FMC, your new financial institution may consider the vehicle a "used vehicle" and then use the higher used car rate. I had this happen to me when I did the exact same thing on a 2005 Taurus...the rate was higher than the Ford Credit.

 

[dentalpain]

In my experience, lending institutions consider a car "used" after its 12mo old or greater.
from PenFed:
New Auto Loans: Loan rate applicable to new vehicles only. New vehicles are where you are the original owner and the untitled vehicle is a current (2018) or prior model year (2017).

Regarding financing with Ford for upfront cash...I did the same thing in 2016...they want you to wait a month or two so the local dealer gets their spiff back from ford...but you can pay it off anytime. I waited a month or two.

Not sure if they still do it, but I have requested a brocheure from ford and its had a $750 off coupon in it 3x in the past. Its added automatically to ford vincient system and can be used at any dealership...but it takes a month or two to show up and Im not sure if its a current promo.

 

[KayGee]

With a credit score >800, I would expect a better rate than 5%, even from Ford credit. Is that the actual rate or did the dealer mark it up any (1/2, 1, 2%)?

Are you willing to walk away from the deal and go to another dealer?

How much extra time and effort is involved with setting up two loans and paying the Ford one off early? How will your credit score be affected by this? Is it worth it to save the $500? Some/many will say yes, but some may value their time differently and not care or not want to risk the hit to their credit score - different strokes for different folks.

If the new vs used is an issue for loan purposes, I believe you can dual finance - do the minimum through fc (I believe $4K) for the shortest time period and the balance through your bank or cu - instead of trying to refinance after purchase.

 

[cwescapexlt4x4]

OTD pricing is harder to tell if "Good deal" as taxes vary by local/state amounts. What's the amount before tax?

 

[KayGee]

OTD pricing is harder to tell if "Good deal" as taxes vary by local/state amounts. What's the amount before tax?

Unless I'm missing it, wouldn't you also need some other key info, like FWD/AWD, EB or 3.5, MSRP, discounts applied, etc... to really discuss if the price is a deal or not?

 

[Ben B]

With a credit score >800, I would expect a better rate than 5%, even from Ford credit. Is that the actual rate or did the dealer mark it up any (1/2, 1, 2%)?

Are you willing to walk away from the deal and go to another dealer?

How much extra time and effort is involved with setting up two loans and paying the Ford one off early? How will your credit score be affected by this? Is it worth it to save the $500? Some/many will say yes, but some may value their time differently and not care or not want to risk the hit to their credit score - different strokes for different folks.

If the new vs used is an issue for loan purposes, I believe you can dual finance - do the minimum through fc (I believe $4K) for the shortest time period and the balance through your bank or cu - instead of trying to refinance after purchase.

No this is true. I had a FICO of 813 and it was 5.99% to get the cash back deals. I am waiting for the dealer to cash my check today and then to get Ford Credit to give me my account number so I can refinance to my CU for a 2.24% rate.

 

[KayGee]

No this is true. I had a FICO of 813 and it was 5.99% to get the cash back deals. I am waiting for the dealer to cash my check today and then to get Ford Credit to give me my account number so I can refinance to my CU for a 2.24% rate.

Was your rate part of a published promo/rebate or employee/special purchase?

It's been a while since I sold cars, but generally there were different promos and some had specific set financing rates and others didn't. For those that didn't have set financing rates, the dealer could mark up the rate provided by the captive finance company or pass it through if there was risk to the deal or the gross was already high enough. There may be exceptions where they can't mark up the rate for certain promos or certain purchases. The markup allowed in the past is much more than what is allowed today, but I believe it can still be up to 2-3%. Most dealers will not show you the deal worksheet from the finance company to verify the actual rate.

Also, it wasn't uncommon for a dealer with a strong local finance source to get people bought at a 1/4 to 1/2% better than they could on their own and that allowed the dealer to match a customers best rate and still make a little money on the financing - since this was typically with a local finance source, it wouldn't work if the promo/rebate required captive financing.