Financing the 2021 Bronco

[NayNay]

Savage haha

Come in with a credit union offer (don't tell anyone). Have Ford offer the rebate... sign to take the rebate... then call up Ford Credit next day & buyout the finance contract with the credit union's money.

A. Cash Rebate is yours.
B. Low interest rate is also yours.

The right thing to do would be to have the dealership move your 1st payment to 30 days out and make 2 payments and pay off on the 3rd. If not the dealership gets charged back the rebates people take, which in turn they charge to the workers paychecks. That is after all of you are trying to be fair. For me as an individual I do explain this because we as people who work also have bills too. I'm sure the big dealers can handle it, but the small ones like mine get really hurt by that. A couple charge back can make the difference of people feeding their family that month or paying bills. Just an FYI.

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[LarryZiegler]

i thought ford was offering 48 month 0% APR?

There are no Bronco rates yet, but Current Bronco Sport rates are 0%-36mo, 0.9%-48mo, 1.9%-60mo, 3.9%-72mo, & 5.9%-84mo.

 

[LarryZiegler]

Savage haha

Come in with a credit union offer (don't tell anyone). Have Ford offer the rebate... sign to take the rebate... then call up Ford Credit next day & buyout the finance contract with the credit union's money.

A. Cash Rebate is yours.
B. Low interest rate is also yours.

You need to ask the question of how long the loan needs to stay in effect to avoid a charge-back. With Honda on pricing promotions involving their loans, it’s 90 days.

 

[NateL]

I happened to see finance rates for the Bronco Sport thru Ford Motor Credit. 0% for 36 mo, 0.9% for 48 mo, 1.9% for 60mo, 3.9% for 72 mo, and 5.9% for 84 mo. Assuming the cost of money doesn’t change, I won’t be surprised to see these rates for the regular Bronco. After all it is a high volume seller

I hope they have 0% for 36! That’d be awesome

 

[KindaOrange]

The right thing to do would be to have the dealership move your 1st payment to 30 days out and make 2 payments and pay off on the 3rd. If not the dealership gets charged back the rebates people take, which in turn they charge to the workers paychecks. That is after all of you are trying to be fair. For me as an individual I do explain this because we as people who work also have bills too. I'm sure the big dealers can handle it, but the small ones like mine get really hurt by that. A couple charge back can make the difference of people feeding their family that month or paying bills. Just an FYI.

Fair. Don't mean to hurt anyone who's willing to work constructively with us in the first place.

 

[Vinny6G]

Does anyone know the scoring model Ford uses in financing? Fico/Auto 8, 9, etc?

 

[AH64DB2]

With Ford financing your payment due date is anytime in the month that it is due. For example, if your payment is due "by Sep at the latest" it obviously means anytime in the month of September. Right?

 

[NayNay]

Fair. Don't mean to hurt anyone who's willing to work constructively with us in the first place.

You'll be able to tell the type of dealership you're working with. If they hit you with a standard rate (considering you've good credit) of 6.5 to 7% they're holding. I'd let them know You'll pay it off faster if they hold points on you. Again, my opinion it's a 2 way road.

 

[Dick_Castlesmurff]

I can't help but wonder what the residual value of these will be. If they hold their value like Jeeps have, it's hard to justify buying a used one with 50k on the clock for a similar price to what you can get a new one for with some of the pricing being offered at the various dealers on here.

Especially when you take into consideration that incentives (both interest rates and cash money) are nowhere as favorable on used vehicles, in my experience.

22K is probably is underpriced for the Bandlands. Currently you can buy a 2016 4 door rubicon for 15K less than a 2020 (30K vs. 45K), which is still amazing resale relative to most cars, but also far from being "similar price to what you can get a new one for." The 4 year and 10 year marks are usually the sweet spots to buy a used car.

 

[LarryZiegler]

22K is probably is underpriced for the Bandlands. Currently you can buy a 2016 4 door rubicon for 15K less than a 2020 (30K vs. 45K), which is still amazing resale relative to most cars, but also far from being "similar price to what you can get a new one for." The 4 year and 10 year marks are usually the sweet spots to buy a used car.

Come to California and prepare for sticker shock. Using Autotrader.com and starting with a 2015 Rubicon Unltd, the minimum asking price starts at $30,000. I assume the Bronco will be in the same pricing territory. Go figure!

 

[Tre]

Come to California and prepare for sticker shock. Using Autotrader.com and starting with a 2015 Rubicon Unltd, the minimum asking price starts at $30,000. I assume the Bronco will be in the same pricing territory. Go figure!

Both of what you said is exactly what I was thinking. I have always bought used vehicles because I didn't want to take the depreciation hit. However, it seems like trucks and larger SUVs, or even mid-size SUVs like a Jeep or a Bronco, are holding under their value like crazy in northern Illinois.

I have a friend who recently sold a Wrangler unlimited, for the same as what he bought it for, three years after he bought it.

The used car market right now feels the same as it did after cash for clunkers. Used car values are crazy town.

 

[JonD]

It's getting tight...my wife has an 820 and best offered was 1.9 which still isnt bad....

 

[LarryZiegler]

It's getting tight...my wife has an 820 and best offered was 1.9 which still isnt bad....

Yep.....you are on the border of being sub-prime and having to be offered those super high loan rates of 2.5%. Nothing is set in stone, but sufficient income, an acceptable level of debt and a score of 740 will satisfy most in order to get the lowest rate. There are many different credit scoring models out there....for mortgages your 820 might be a 790 and for auto loans, your 820 might be 830. That's what I have experienced......and any of those numbers are good!

 

[Hacksaw]

I literally made an account to address this as a financial planner:

The cost of borrowing against your 401k (or any workplace retirement plan) is substantial:
1 - It is literally a withdrawal of your own money, so the missed return is a cost.
2 - 401k Loans have fees for processing
3 - You have to pay yourself back interest
4 - The interest you pay back is not tax deductible (where as your contributions are)
5 - As mentioned, if you leave that job (your choice or not) the full amount becomes due. If not paid back it is considered a withdrawal (*edited to add that your company could also close their plan which could make the loan come due as well. It is rare, but possible)
6 - If #5 happens, you now owe income taxes on that withdrawal
7 - If #5 happens and you are under 59-1/2 you now also owe additional 10% penalty
8 - If #6 and #7 happen, you probably didn't have the cash to pay back the loan, so good chance you might not have the cash to now pay the taxes and penalty owed.

Borrowing against a 401k is a last resort. PLEASE do not do it to buy a car. Seriously. Don't do it.

 

[Karl_in_Chicago]

I literally made an account to address this as a financial planner:


2 - 401k Loans have fees for processing
Borrowing against a 401k is a last resort. PLEASE do not do it to buy a car. Seriously. Don't do it.

I would amend #2 to be "401K Loans *may* have fees for processing".
I know my 401K plan doesn't. That said I agree with your post 100%. If someone needs to borrow from their 401K plan to buy a car . . . find a cheaper car.

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