Picking Up Bronco Friday! Dealer insisted on financing

[Arrowbear Rider]

You're right, but tell that to the guy who waited 2 years to get their Bronco and the choice is play the game or lose your Bronco. As you said, they can sell above MSRP, so why give them a reason to?

I'd be pissed, but I would get my Bronco, payoff the loan early (if financing at all) and then deal with the dealer through reviews and not giving them any other business.

But after waiting over 2 years I would get my Bronco first, like one poster wrote, it costed him $15 extra, my time is more valuable than that to waste it arguing over something I can fix later. Be sure, I'd make sure it didn't cost me much more. But most of the time I let them know I was a Flooring Auditor and that stops them from dicking with me.

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[da_jokker]

If your APR is 5% or less, keep the financing and invest the cash. You'll pay far less on your Bronco and profit from inflation on top of it.

Where are you getting returns higher than 5% in the market right now? The markets dropped 20% since the last October.

 

[Theherofails]

Where are you getting returns higher than 5% in the market right now? The markets dropped 20% since the last October.

Right now? Bonds and third party exchanges doing smaller scale loans in the developing world. I’m not gonna get political, but the markets here are going to suck for.. oh, I don’t know - 2 more years, roughly? It’s been a bloodbath.

 

[da_jokker]

Right now? Bonds and third party exchanges doing smaller scale loans in the developing world. I’m not gonna get political, but the markets here are going to suck for.. oh, I don’t know - 2 more years, roughly? It’s been a bloodbath.

Yeah I agree with you time span assessment

Stumbled on a 1 year CD with 4% return, but even with that I'd be lucky to get an Auto loan that would break even. Maybe I'll see what interest rate the dealer can get me IF My bronco ever shows up.

 

[jehines3]

Where are you getting returns higher than 5% in the market right now? The markets dropped 20% since the last October.

You missed buying I bonds at 9% eh?

 

[jehines3]

Several have said it well here. The buyer must be well informed going in. It’s a major purchase for most people. Knowing your cash reserves and a private finance rate are two key ingredients to being agile in a negotiation. My dealer and I agreed to MSRP (with price protection) when we signed the DORA so long as they matched my credit union rate and duration. That was 18 months ago. Fast forward to pickup this month. They didn’t really care about the financing any more. They matched my credit union 48 month rate but at 72 months. I put 50% down and plowed another $10k into some I bonds. I had two years to save up a down payment and formulate a negation for the Bronco.

The folks that get screwed are must have the “in thing” now paying ADM, negative equity trade in, focused on keeping up with the Jones’, and their 19 Instagram followers. Don’t be that person.

 

[Taco2Bronco]

Ford is trying to crack down on this type of BS but it’ll take time to fix everything. Plus the entire dealership model is changing…and not in their favor.

 

[BigDaddySquatch]

You are correct that they can’t force you to finance through them. But they can give discounts and rebates based on your financing. If you are willing to pay the extra money for the car to use your own financing or pay cash, then you have that option, but it will probably cost you more in the long run.
and the dealer gets a bonus for bumping the interest rates from the bank. In other words, if the bank looks at your credit and quotes 4.99% apr, but the dealer can bump it to 5.99%, the dealer may get a bonus of $1000 or whatever. It’s part of how they can still make profit when telling you they are selling the vehicle under invoice. You didn’t think they were going to lose money just because you are such a nice guy did you?

 

[da_jokker]

You missed buying I bonds at 9% eh?

I guess so. Never saw some short term bonds with that high. My plan is simple, find out what the best rate the dealer can offer, and decide then.

Right now, I have no idea my Bronco will be shipped this week or 4 months from now.

 

[broncon00b]

I guess so. Never saw some short term bonds with that high. My plan is simple, find out what the best rate the dealer can offer, and decide then.

Right now, I have no idea my Bronco will be shipped this week or 4 months from now.

You can only put 10k into the ir bond.. and october 28th was the latest to get 9% but thats if you leave it 3yrs. IF you pull it out at 12mths you get 9mths interest. As for political it has nothing to do with politics inflation is global.

 

[jimcalverley]

Really glad I found bronco6g.com and this forum. After a 10 month wait we got the “Shipped” email from Ford on a fully loaded 2 dr. Cactus Grey, delivery 11/05–11/11. I alerted the dealership (Franklin Ford in MA) to expect delivery of the vehicle and told them I had financing lined up. The salesman responded that all pricing was based on dealer financing.

I’m curious about the additional bucks dealers get from the financing. It has to be some kind of commission from the bank/CU? Or do I have to pay made up fees, like origination points on a mortgage? There can be other terms like no down payment and limits on length of loan.

If I get confronted with a minimum loan period or prepayment penalty when arrive at the dealership, the only resolution I can think of (other than “take this Bronco and shove it”) is A) offer to pay an additional $500 (or more?) on top of the $2k mark up I’m already paying, or 2) negotiate better financing terms. Of course the dealership can claim the convenient excuse that the bank/CU sets the terms.

Anyone else have a better approach? The vehicle is a graduation present for our son which makes the situation even more difficult.

Eric, I know your original post was a while ago, but can you update me on your resolution with Franklin Ford? I have a Bronco on order with them right now, with a build date of May22nd. Any insight that might help me would be appreciated.

 

[JR23]

Eric, I know your original post was a while ago, but can you update me on your resolution with Franklin Ford? I have a Bronco on order with them right now, with a build date of May22nd. Any insight that might help me would be appreciated.

Couple weeks late here but sounds like you have a May build. I bought off the lot at Franklin , 23’ OBX. Slight ADM. They will insist on dealer arranged financing. You can save the difference by refinancing after a payment or two, they will lose the juice on the loan. I don’t know how this impacts any long term service relationship. Other than that I was in and out with no surprises. Fair trade in, 5 minute warranty sell job. They didn’t even try to talk me into any dealer accessories. Washed and waxed to drive home with transfered plates.

 

[jimcalverley]

Couple weeks late here but sounds like you have a May build. I bought off the lot at Franklin , 23’ OBX. Slight ADM. They will insist on dealer arranged financing. You can save the difference by refinancing after a payment or two, they will lose the juice on the loan. I don’t know how this impacts any long term service relationship. Other than that I was in and out with no surprises. Fair trade in, 5 minute warranty sell job. They didn’t even try to talk me into any dealer accessories. Washed and waxed to drive home with transfered plates.

Thanks for following up. So far they’ve been really good and straight up with me on everything - your experience leads me to believe that should follow through the rest of the process - much appreciated!

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