Does financing give me any leverage?

okccj

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Hi,

Fortunately I'm in a position where I can buy my Bronco outright. However, I was curious if I did agree to finance some of the price if I could use that to leverage the dealership to include an extended warranty. If so, I would finance but then pay it off in about 6 months.

Thoughts?


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JoshuaPrieto

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If you find a dealership that will give you leverage, please tell me who that'd be 😂

In all seriousness, dealerships wont throw in a warranty, some will do $500 over. A few dealers are giving $50 over ESPs for their reservations.

In a 2019 Market, you may just have a chance - but not in this market
 

BR0NCO

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Not at all, in fact as far as the dealer is concerned it is a negative
 

MnLakeBum

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My dealer didn’t offer any such deal although I tried. With the extreme Bronco demand and limited supply, they have zero reason to include an ESP and reduce their profit margin. I wound up going with my own financing as I see little reason to pay cash with borrowing costs under 2.5%, especially when I can earn about 10% on my money elsewhere. That 7% opportunity cost would add up to me paying an extra $22k over 5 years if I pay cash for my Bronco.
 

Planet_Express_IV

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Not likely, especially these days when they can likely sell your vehicle to someone off the street if you walk and likely at a large markup. You have very little leverage at all if anything you'll have to pay more if you want the ESP than you would from one of the discount resellers on top of the price of the vehicle
 

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Monster1926

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Dealers love financing as banks give them kick backs to finance you into a higher rate. I financed my wrangler and received an additional 1% under invoice ($766). It’s possible they would do the financing for warranty deal if you agree to a 10% interest rate. I wouldn’t buy a warranty unless it’s from flood or granger. Other dealers add crazy mark up to them. It doesn’t hurt to ask about financing and ask how long they’d want you to carry the loan for before you pay it off.
 

thenewjs

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No one is going to "throw in" an Extended Warranty!
 

Theowlhoothoot

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You can always bring it up, but I doubt you will get any perks. There are plenty of places that sell the warranty for 50-100 dollars over value.

I would just get them to straight up price match or don't worry about it. You aren't gonna ever win financing with the dealer.

Best case they will throw in service or some accessories. But I would be careful they don't skim off your ford points.
 

heynow14

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As noted above, go to Granger or Flood and get ESP. Don't get it elsewhere. If you can borrow at a good rate due to good credit, do it. It makes little sense to tie up $50-60k in cash in a depreciating asset. Put that money elsewhere.

As I always counsel folks: "buy things with other people's money - when other people's money is cheap."
 
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okccj

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As noted above, go to Granger or Flood and get ESP. Don't get it elsewhere. If you can borrow at a good rate due to good credit, do it. It makes little sense to tie up $50-60k in cash in a depreciating asset. Put that money elsewhere.

As I always counsel folks: "buy things with other people's money - when other people's money is cheap."
I've got great credit. Where are the best places to find the lowest APRs?
 

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RedHotFuzz

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Back when I bought a Mini Cooper during the Cooper craze (2005), I paid full MSRP and the dealer wouldn’t even give me a free set of rubber floor mats. You’re not getting any freebies with your Bronco either.
 

TXBoy79

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I've got great credit. Where are the best places to find the lowest APRs?
Credit Unions are probably your best bet. When I get my loan I'll go through Navy Federal CU as they're at about 2.7% but I'm active duty and can get 1% off of that on my loan so it'll be 1.7%, some say PENFED is good but what I saw this morning they're a little higher.
 

Theowlhoothoot

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I've got great credit. Where are the best places to find the lowest APRs?
We use DCU for a low rate offer then get a local credit union to rate match or beat it. I think we ended up with 1.9% on my wife's Bronco.
 

Mr. Nice

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My dealer didn’t offer any such deal although I tried. With the extreme Bronco demand and limited supply, they have zero reason to include an ESP and reduce their profit margin. I wound up going with my own financing as I see little reason to pay cash with borrowing costs under 2.5%, especially when I can earn about 10% on my money elsewhere. That 7% opportunity cost would add up to me paying an extra $22k over 5 years if I pay cash for my Bronco.
Really. I sure don't know where most anyone is getting 10% this year?

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1939-17.3
1941-12.0
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1973-9.4
1960-9.2
1962-8.8
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Seagull

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I imagine there is no incentive in Canada either, but for those who want to buy outright like myself, many dealers will only allow finance or lease in order to attempt control the vehicle not being exported stateside where there is money to be made. Non-export agreements are also rampant; but at least there isn't much ADM up here.
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