POLL: How would you feel if Ford moved up-front cash buyers to the front of the line?

[D Fresh]

Dealersships get a kickback on financing. This is why you don't tell them you're paying cash until the end of the transaction. I've paid cash for a new vehicle one time, the sales manager tried to squirm me into financing forever. Even offered me another $1000 off purchase price to finance.

Even if the dealership isn't carrying the note, they make money off of financing.
On a new car your bank cannot compete with what Ford will offer. Check them out, but they probably won't. The last 2 vehicles I financed through Ford were at 0%. I've never heard of a bank or credit union offering free money.

The dealer creditors usually offer better interest rates for auto loans than your traditional bank can. I have gotten pre-approved from my bank on my last two vehicle purchases but ended up financing at the dealer instead because the deals were just better.

This. A thousand times this.

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[That_Hal]

That's not what the hypothetical was based off of.

 

[Heffe66413]

There has been some talk about Ford/dealers having concerns about people ordering Broncos but not acutally following through with buying them. What if Ford allowed people who pay in full at the time of order to move to the front of the line and get their Broncos first?

Why would anyone want to tie up 40000-50000 for 6-8 months when it could be invested and earning money?

 

[stedydrizl]

I think most people are aware CASH doesn't matter to the dealers. They get paid, and in many cases make extra off of people with loan kickbacks. They actually make more money by getting less credit worthy folks, higher rate loans vs. getting paid cash from the customer.
OTOH, selling all these Broncos in Special Orders, with people not being able to see,touch or drive before ordering may cause a big problem. I know I'm concerned.
If know I will not order my Bronco if my additional deposit isn't refundable under these conditions. I don't believe they can not refund if you don't like the Vehicle once it shows up, so that could present a lot of problems for everyone.
I believe Ford should be building enough Broncos up front to provide Dealers with adequate Demo models before accepting orders. I would feel much better ordering after I look and drive one. Also to protect Ford, they should make sure people who Order Broncos have been verified and approved up front. Imagine someone all excited to order then be told at delivery the best interest available to them is 8-9 %, pushing their payment over their limit. Lots to think about with this process !

 

[aouvrier]

Would never happen. Dealer make a huge % of their profit on financing. They DONT want all cash buyers. http://www.realcartips.com/newcars/135-how-car-dealers-really-make-money.shtml. Remember, you’re buying the Bronco from the dealer, not from Ford.

 

[Wanted33]

Is this one of those "if a frog had wings he wouldn't bump his butt every time he jumped" questions? I haven't heard anything like this, and after being on this forum for awhile if it were so it would be a "sticky" at the top of the page. Let's not worry about something that will probably never happen.

 

[Heffe66413]

Assuming Ia low return on an annual earnings in the stock market at 8%, a half a year would be 2000 in savings.

 

[gryphon1231]

There has been some talk about Ford/dealers having concerns about people ordering Broncos but not acutally following through with buying them. What if Ford allowed people who pay in full at the time of order to move to the front of the line and get their Broncos first?

Even if someone is going to pay cash for their new Bronco and forego a loan, there's no way you'd hand money over to the dealer until you take delivery. So, paying cash or financing really does not matter, because until delivery the buyer can still walk away.

 

[theguda]

Where's the "I don't care" option?

It's called "

Even if someone is going to pay cash for their new Bronco and forego a loan, there's no way you'd hand money over to the dealer until you take delivery. So, paying cash or financing really does not matter, because until delivery the buyer can still walk away.

If Ford sent me a contract saying I'd have my Bronco the first month of production if I paid cash up front I'd wire the money to Ford or @Granger Ford the next day.

 

[gryphon1231]

It's called "


If Ford sent me a contract saying I'd have my Bronco the first month of production if I paid cash up front I'd wire the money to Ford or @Granger Ford the next day.

If you gave a dealership $65K and the dealer filed bankruptcy or otherwise went out of business before you took delivery of your Bronco you'd be out 65K. Huge risk to hand over that kind of money with out taking possession of the vehicle.

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