Picking Up Bronco Friday! Dealer insisted on financing

[GoTigersGoBronco]

If a dealer told me this, I’d pay it off on the first day it’s funded. They’ll get charged back the reserve.

I’ve seen thousands of car loan documents and they usually stipulate “no prepayment penalty” so you are free to pay it off on the first day possible.

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[Theherofails]

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.

 

[BroncoAZ]

That’s some bullshit. I understand that they want to make more profit, but if you’re paying MSRP on a truck they are making plenty.

Last month I purchased a Toyota for my employer with an established line of credit. Everything was fine until the scumbag finance manager marked up the rate 2% from the bank’s normal rate for us. I called him out on it and he was unapologetic, said his department had to make money somewhere. I tried to explain that they made money over invoice plus holdback and doc fee, his department didn’t need to make a dime since all they were doing was submitting paperwork to the finance company to get a check. He was insistent and I needed the vehicle ASAP. We negotiated down to .5% markup. I took the deal and discussed prepaying the loan with the CFO. The dealership will get charged back the extra .5% plus a penalty from the finance company. Two can play games, fuck em!

For my personal stuff I always walk in with financing in hand and allow the dealer to try and match or beat it. I had 2.29% for 72 from Navy Federal on my 2020 Raptor last year, the dealership was at 2.79% and didn’t seem to understand why I wasn’t willing to pay the extra .5% so they could make more profit. I bought the Raptor for $500 over invoice.

 

[Copperhorse73]

Just closed on my Bronco, dealer got me 2.39% for 72 months. My credit union was at 2.54, so it was an easy decision, made the dealer happy and no need to refinance later

 

[g.alton68]

My dealer contacted me to let me know my Bronco has arrived. They said that they will send over paperwork for financing. I told them that I will be paying cash no need for financing. They said they won’t sell any vehicle without financing through them.

i almost got worked up then thought and said OK as long as I can pay the loan off in advance Like in a couple months. we Signed the paperwork and I pickup the car on Friday. That’s not too bad…right could have been worse.

Just pay off the loan early and save on the extra interest.

 

[Buck'nBronc22]

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.

 

[hemiblas]

Agreed. It is ridiculous that Ford is allowing this to happen. The bad dealers are taking advantage of people. I won't ever order another Ford through any reservation system and I tell everyone what a mess this has been.

 

[BroncoAZ]

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.

What scum bags. After your transaction report them to the MA Attorney Generals office for bad business practices. See what the not financed through them price is and go from there.

Dealers mark up the bank’s base rate 1-3% to pad their own profit, but if there is no prepayment penalty then you can pay off the loan within 6 months and the bank charges them a penalty.

 

[ScottyC]

My dealer wanted to have me get financing through them, I told them, "You don't have to beat it, but if you can meet the rate my CU has, I'll finance through you." when I told them (and proved) that my CU was at 1.49% for a 48 month loan, they agreed that I should get financing through my CU.

 

[rtazz17]

Lol,I will say it again. All dealers are potential scumbags. Nature of game. You just learn how to play the game. Op covered himself. No prepayment penalty’. I did this yrs ago as well. Payed it off with very first payment. Interest was 15 bucks for that month but that was already made up elsewhere on purpose. All scum.

 

[Draughon]

Honestly, if I had the cash in hand to buy it, I probably still wouldn't simply because I could then finance a super low amount to then boost my credit rating with.

"Why yes, I'll take a $75/month car payment!"

This would be what I would've done.

Dealer: What's your down payment?

Me: $55k I'd like to finance the remaning $4k over 36 months.

 

[Arrowbear Rider]

Some of you guys thinking that Ford can regulate every thing a dealership does are just bonkers. Ford may be able to try to name match and "try" to slap the hands of dealerships adding ADM, but to think Ford can regulate every aspect of the deal is crazy.

How much man power would it take to audit every deal on the million(s) cars they build? Just doing flooring audits is an all day affair for a smaller/mid size dealership, a really large one takes 3-4 auditors to get it done; and the lead auditor still has to go back the next day to clean up and finish.

If I had to scrutinize every one of a deal's financing that would add days to a large audit, and it's just not going to happen. And the dealerships would fight the amount of time and man hours on their side to go through every deal that way too. Plus I'm not a credit auditor, so how do I know what's a good interest rate for you without seeing all of your credit information, that's another chance for ID theft.

My work auditing helped put one Montana Mitsubishi dealership out of business and in jail for shady financing and other "Stealership" practices and that case took months to build and require the states attorney general to get involved.

There becomes a point were the consumer is responsible for their own purchase and to know what they are purchasing and how. "Buyer Beware" also means be a ware of what your buying and how, it's not just a warning on what. Big manufactures can't hold your hand for every part of the transaction, that's what the dealerships are for, it's our job to shop, research and find the one we want to work with and buy from.

Note; While most dealership play by the rules, a few will make your monthly payment on your trade in instead of forking up the cash to pay off, your time is better spent following up with your old loan and checking that it's paid off on time then to worry about a loan you can prepay off the balance with no penalty. Imagine going for a new home loan six months later and being denied because the dealership didn't pay off your trade but made loan payments instead, it rare but it happens.

I would rather not go through all of that, and shouldn't have to, but if locked in to an order that I waited 2 years to get I'm going to jump through a small hoop to still get that Bronco. We didn't have the same opportunity to shop around as we would have had if the Broncos were sitting on lots waiting to be bought.

 

[Thestralcowboy]

My dealer contacted me to let me know my Bronco has arrived. They said that they will send over paperwork for financing. I told them that I will be paying cash no need for financing. They said they won’t sell any vehicle without financing through them.

i almost got worked up then thought and said OK as long as I can pay the loan off in advance Like in a couple months. we Signed the paperwork and I pickup the car on Friday. That’s not too bad…right could have been worse.

I bet they charged you a bunch of closing finance fees in lieu of ADM. I financed with my credit union separately, walked in with a check and drove out with a Bronco. Never trust someone who won’t let you bring your own financing!!

 

[YULQQKN4]

FYI...As a dealership finance manager, some banks have a minimum amount financed of $7500 or $8500 dollars. Ford Motor Credit has a minimum monthly retail payment of $50.01. And there is a low balance adjustment of 1% added to the buy rate for an amount financed under $8000. All for credit contracts clearly state that there is no pre-payment penalty in the truth in lending disclosure.

 

[RHeinz]

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.

Absolutely!

I lived in Argentina in 1982 and observed an economy functioning with an anual inflation rate of over 150%. You financed everything since every month the VALUE of what you owed was less and after a couple of months, significantly less. Of course prices were also very high. Pay raises occurred monthly. The currency was renamed and reprinted when they ran out of space for all the zeros required on the currency. Property is still bought and sold there in US Dollars.

Americans have no clue regarding inflation. Luckily, its not to Argentine rates yet.

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