New Explorer Purchase

[Rob0424]

Is there any reason why I coulnd't talk the dealer into giving me both the $1500 cash back and also the 4.9% 72 month financing? They say on or the other, but I want to know why I can't talk them into both if they really want to sell me something.

 

[jessydog]

Rob, I thought about the same thing when I recently bought an '07 Explorer. I'm sure some folks with more financing knowledge will be more helpful than I in detailing the finer points, but here's how I understand it. Ford's own financing company offers one or the other. The people with whom you negotiate the selling price of a car don't represent that finance company. Think of Ford's finance company as a "preferred lender", nothing more. What seemed to become clear to me was that the financing incentives were not negotiable. If you take one incentive, you don't get the other.

BUT...you get to apply whichever one of those incentives you choose to the best deal you can make. In other words, if you are fortunate/effective enough to negotiate a deal for $5k below invoice (I know that's absurd, but it helps make the point), then you still could choose to knock off yet another $1,500 by taking the cash back option.

If you're convinced that the 4.9% financing option is the one you want, then you just have to make your best deal possible and then apply the special interest rate financing to that deal.

I guess my whole point is, the dealer doesn't have anything to do with the incentives offered by Ford's finance company, which basically means the only back-door way to accomplish what you're thinking about is to wait until you've gotten to where you like the deal, and then try to negotiate the price another $1,500 downward before signing on the ol' dotted line.

-JD

 

[TinwoodyII]

See if you can get your own financing cheaper - Sometimes it is possible with credit unions - and take the cash back.
BW

 

[Rob0424]

I have a loan ready with 6.5% but if I could get 4.9% along with the $1500 rebate, that would be the ideal situation, but it doesn't sound like that can happen. I will just have to get them to knock off $1500 on the price instead.

 

[blichy]

See if you can get your own financing cheaper - Sometimes it is possible with credit unions - and take the cash back.
BW

Unfortunately to do this, you have to first finance with Ford Credit. Then you are refinancing with your bank, for a used car that will probably be a higher rate. If the dealer gives you the $1500 cash back and doesn't send the contract to Ford Credit, the dealer will be eating that $1500.

 

[TinwoodyII]

Unfortunately to do this, you have to first finance with Ford Credit. Then you are refinancing with your bank, for a used car that will probably be a higher rate. If the dealer gives you the $1500 cash back and doesn't send the contract to Ford Credit, the dealer will be eating that $1500.

Depends on who is offering the rebate, the credit company or Ford Motor Company. I took one a while back, got a low interest rate and the factory rebate BOTH.
BW

 

[beenwrong2002]

I'm in sales at a Dodge dealership...When Ford offers a low interest rate or rebate, it IS one or the other. Its usually the same way with any make. Best thing to do is shop around or find the invoice over the internet, take the invoice into the dealership, usually they'll sell to you at invoice or below and just take the low interest rate...it doesnt hurt to shop around either...go to atleast 3 dealerships...just my opinion...

 

[shaker1]

On a side note, you may be better off taking the $1500 cash back and going with 6.5%.

Assuming 25,000 @ 4.9% vs. 23,500 @ 6.5%: You will save $660 by financing the lower amount at 6.5%. Run your actual numbers with an online loan calculator.

If you don't take the FoMoCo financing what is the best rate the dealer can give you so that you finance through them? Maybe they will meet the 6.5%.

 

[Rob0424]

I have visited 2 dealers already. They have been saying the best rate they might be able to get is like 8.5%-9.5%. Doens't sound too great to me.

My biggest obstacle is finding someone who will payoff the $5200 I owe on my current 2000 explorer.

 

[Rob0424]

When does Ford usually start discounting this years model because next years model is going to start coming out?

 

[dwink]

Is there any reason why I coulnd't talk the dealer into giving me both the $1500 cash back and also the 4.9% 72 month financing? They say on or the other, but I want to know why I can't talk them into both if they really want to sell me something.

You could do what I did, find an 06- they are still out there.

Then you can get 1.9% for 72 months and the $1500 rebate. If you choose an XLT or XLS, make that $2500 with the financing.

They also have 0% thru 60 months.


The rebate/cash thing is an either/or on the 07's. The dealer has nothing to do with it, it is a Ford deal. The dealer should be able to compare if you should take other financing and the rebate or vice versa. That does not mean that you can't shave $1500 from the sticker price. You should not pay more than invoice for a Ford (unless it has GT or Shelby in the model name). Ford also pays 3% holdback of the MSRP, so they are still doing ok on a volume seller like an Explorer @ invoice.

I don't know where you are, but I can give you a line on several nice 06's in New England. Search autotrader for new 06 models in your area. Don't forget the Mountaineer also, same rebate/financing on 06

 

[dwink]

I have visited 2 dealers already. They have been saying the best rate they might be able to get is like 8.5%-9.5%. Doens't sound too great to me.

My biggest obstacle is finding someone who will payoff the $5200 I owe on my current 2000 explorer.

Do you have good credit? I am a banker, 8.5% is a bad deal unless you are subprime.

Go to www.capitaloneautofinance.com for easy, fair auto financing. If you are a homeowner, try www.firstagain.com . I prefer first again, but they (I think) only lend to homeowners w/ great credit.

 

[dwink]

I just did a search in Cleveland for you, there are 6 within 25 miles of the center of the city. Anything from a limited @ 42K to a XLT.

If you find an 06, they should have enough room to eat up the negative equity in your 2000, plus it will be at an unbeatable rate.

Jump on one before they are gone.

 

[blichy]

Do you have good credit? I am a banker, 8.5% is a bad deal unless you are subprime.

Go to www.capitaloneautofinance.com for easy, fair auto financing. If you are a homeowner, try www.firstagain.com . I prefer first again, but they (I think) only lend to homeowners w/ great credit.

However, the 8.5% is about the FC non-subvened market rate--they have a much higher cost of funding than Capital One...

 

[blichy]

Depends on who is offering the rebate, the credit company or Ford Motor Company. I took one a while back, got a low interest rate and the factory rebate BOTH.
BW

Good point. I was assuming that they were both contingent on FC financing, which is not necessarily true.

I have a friend that went with his sister to get a new Tahoe. The salesmantold them that they could have the $1500 GMAC rebate, even though they said they were financing with their bank. Two days later the salesman called them asking to come back to rework the deal since they really shouldn't have gotten the cash back--he claimed that they should feel obligated to return and pay the money back because "it was the right thing to do." During the negotiation process, they asked 3 times if they would still get the $1500 if they financed with their bank, and were told yes each time. Needless to say, they didn't return to give the dealer the money...

 

[Rob0424]

I did a search and am only coming up with higher priced X's or they don't actually exist. I am looking for an XLT around $30k

 

[Chief34]

The main thing is patience....
Also if it just came out then they arent going to be willing to give you both because they can sell it to someone else who will take one or the other.
I bought an 03 ranger when the 04's were coming out... I was told the same routine, 1500 cash back OR 0% interest for 60 months.... I told the guy I would NOT pay sticker price AND I wanted 0% or no sale..... It took me about 5 trips down there on seperate days to get it but I finally got about 4500 off sticker price and 0% just like I wanted.....
The key here is they needed to move the 03's in order to make room for 04's and this particular one was a redtag price wich helped a little too.
you do have to have good credit also or they will rape you cause they know they can... good luck and be patient. walk away and come back to them again if you have to....

 

[dwink]

I did a search and am only coming up with higher priced X's or they don't actually exist. I am looking for an XLT around $30k

Do you mean sticker price or actual price? It seems like a 30K sticker explorer might be rare...not sure though.

Here is a Mercury

http://www.autotrader.com/fyc/vdp.j...ors=&transmission=&max_price=34000&cardist=35

This place is 92 miles away but they have 10 of them. Lowest price is 33K, but with rebate and negotiation that will be under 30K

http://www.autotrader.com/fyc/ncal....ors=&transmission=&max_price=36000&cardist=92

78 miles away from this nice blue XLS 4x4 for $30,155-- That is pretty close to 30K

http://www.autotrader.com/fyc/vdp.j...ors=&transmission=&max_price=36000&cardist=79

 

[dwink]

However, the 8.5% is about the FC non-subvened market rate--they have a much higher cost of funding than Capital One...

Who does? He said local dealers were quoting 8.5%, their finance manager most likely is doing business with local and national banks, the national's certainly don't have a higher cost of funding than Capital One. Actually, Cap One has relatively high COF due to their large portfolio of unsecured loans (credit cards), and they cut their teeth as a sub prime credit card lender... high delinquency with no siginficant deposit base = extremely high COF.

 

[dwink]

I was just poking around @ ford.com

Check this:

2006 XLS,

Program # 11250 = $1500
Program # 11256 = $1000
Program # 20062 = 0% thru 60 or 1.9% thru 72

http://www.fordvehicles.com/suvs/ex...rrer=http://www.ford.com/en/default&planType=



That blue one looks pretty good;

http://apps.dealerconnection.com/de...sticker=true&vin=1FMEU72E86UA82763&modelId=61

http://apps.dealerconnection.com/de...VehicleType=SUVs&lang=en&Year=2006&modelId=61



Sport group and crossbars, MSRP $30,155

Invoice is $27,519, then loose the 2500 rebate and you are just over $25,000

Assuming you are 5K upside down on your trade, you could finance @ 30K for 72 months @ $441.20, give or take.

How's that for service? If you like dark blue and don't mind a 70 mile drive, there is your solution.