Ford order vs Ford Credit how does it work?

[ELCouz]

I'm a bit confused about how Ford Credit works, especially here in Canada. I know it might be different from the U.S., but I’m not sure exactly how.

With most car brands, the APR just moves up or down gradually, but Ford’s rates seem all over the place. Some weeks, they’re terrible, sometimes they’re almost 0%, and other times they’re just average.

When I ordered my 2025 Bronco Sport Badlands Sasquatch back in October 2024, the 2024 models had 0% APR. The dealer told me there was no guarantee I’d get that rate since 2025 models were different.

At the time of my order, they quoted me 6.5% APR through Ford. But now, I’ve seen the 2025 Bronco Sport drop to 3.99% in early February, and now it's back up to 5.99%.

So, how do I know what APR I’m actually going to get when my Bronco Sport arrives in April? Am I locked into the 6.5% from when I ordered, or do I get whatever the rate is when I take delivery?

I’m asking because these rates change so much—if it’s still bad when my BS arrives, I might just walk away from the deal.

Sponsored

 

[Dude]

Google provides this explanation:

in Canada, a vehicle's APR loan rate is not typically set when the vehicle is ordered; it is determined when you apply for financing and is based on your credit score, income, and other factors at that time, meaning the rate can change depending on market conditions even after you order the car.

Key points to remember:

Dynamic rates: Car loan rates in Canada are influenced by the Bank of Canada's prime rate, which can fluctuate depending on economic conditions.

Credit score impact: Your individual credit score plays a major role in determining your final APR.

Loan application process: The exact APR is confirmed when you submit a loan application to a lender.

NOTE:
Both the vehicle purchase price and the APR you have to pay are negotiable, often the dealership tries to maximize their profit on both of those items but your goal is to get the best price and best financing using your superb negotiating skills

 

[ELCouz]

NOTE:
Both the vehicle purchase price and the APR you have to pay are negotiable, often the dealership tries to maximize their profit on both of those items but your goal is to get the best price and best financing using your superb negotiating skills

I was told the negotiating power is practically none with a car in "special order" vs dealer order.

Also Ford use rebates and APR deals to move vehicles inventory as well.

 

[Dude]

I was told the negotiating power is practically none with a car in "special order" vs dealer order.

Also Ford use rebates and APR deals to move vehicles inventory as well.

There might be Ford Rebates available. Have you searched online for all of the rebates available to you in your location and circumstances (e.g. Jeep owner, etc)?

I don’t know about Canada but in the US we can easily search by zip code and it is best to search at the time you place the order because rebates are valid from order placement date so print copies of what you see online for rebates and maybe also by the date you actually get the vehicle (I’m not sure about the latter date) - if you find an applicable rebate, notify your dealership now

you are able to negotiate the financing rate and terms … At the time you come in to pick up the vehicle, start by saying, “this entire deal hinges on what I have to pay for financing” (this typically works best if you did not have to put down a non refundable deposit and if you have the ability to walk away from the deal or if you have pre-approved at the best rate possible at a bank or credit union)

if you trade in a vehicle, say “this entire deal hinges on what I will be paid for my trade in”

if you are purchasing a Ford extended warranty, say “this entire deal hinges on what I have to pay for the warranty” although it’s almost always better to obtain a Ford ESP (extended warranty) online from a discount provider if like in the US that’s an option in Canada

Others might give you more tips when doing a special order

 

[ELCouz]

There might be Ford Rebates available. Have you searched online for all of the rebates available to you in your location and circumstances (e.g. Jeep owner, etc)?

I don’t know about Canada but in the US we can easily search by zip code and it is best to search at the time you place the order because rebates are valid from order placement date so print copies of what you see online for rebates and maybe also by the date you actually get the vehicle (I’m not sure about the latter date) - if you find an applicable rebate, notify your dealership now

you are able to negotiate the financing rate and terms … At the time you come in to pick up the vehicle, start by saying, “this entire deal hinges on what I have to pay for financing” (this typically works best if you did not have to put down a non refundable deposit and if you have the ability to walk away from the deal)

if you trade in a vehicle, say “this entire deal hinges on what I will be paid for my trade in”

if you are purchasing a Ford extended warranty, say “this entire deal hinges on what I have to pay for the warranty” although it’s almost always better to obtain a Ford ESP (extended warranty) online from a discount provider if like in the US that’s an option in Canada

Others might give you more tips when doing a special order

Thanks, I will take any tips since this my first new purchase from a dealer. ?

I did leave a 500$ deposit for the special order but I am willing to loose the car and wait until end of year for MY2025 liquidation. I think the APR is what you get. My wife bought a new CX-30 and when she special order it they guarantee a 3.99%.

Was 2.99% for 3 years when she took delivery. Ford APR is completely an unknown variable for me.

I will check every week and record rebates from Ford or advertised APRs to have some negotiating leverage.

 

[Dude]

Thanks, I will take any tips since this my first new purchase from a dealer. ?

I did leave a 500$ deposit for the special order but I am willing to loose the car and wait until end of year for MY2025 liquidation. I think the APR is what you get. My wife bought a new CX-30 and when she special order it they guarantee a 3.99%.

Was 2.99% for 3 years when she took delivery. Ford APR is completely an unknown variable for me.

I will check every week and record rebates from Ford or advertised APRs to have some negotiating leverage.

Remember … Ford APR is negotiable if you make it so

 

[jkernitzki]

Manufacturer-backed financing is rarely the best option, except for specific scenarios. You should go in pre-approved (not just “qualified“) from your bank or credit union. That’s your leverage. Pick whoever is lowest at the end of the negotiation.

In one case my pre-approved rate from the bank was better, in another the dealer financing won the deal at the last counter-offer. My next deal will be zero interest, zero term financing. I’m just writing a check.

 

[Tigger]

Manufacturer-backed financing is rarely the best option, except for specific scenarios. You should go in pre-approved (not just “qualified“) from your bank or credit union. That’s your leverage. Pick whoever is lowest at the end of the negotiation.

In one case my pre-approved rate from the bank was better, in another the dealer financing won the deal at the last counter-offer. My next deal will be zero interest, zero term financing. I’m just writing a check.

This is what I was going to say. Having a good rate pre-approved helps you know where you stand with the dealership. Unless there is some odd special incentive, like 0.9%, rarely will the initial offer be better than your pre-approval. But, once they see you know what you’re doing, they’ll work a little harder.

Also, and this is just me so don't do it if you’re not comfortable, I lie. If the bank said the best rate was 5.79 and I want the dealership to beat it, I will say I was offered 5.29. Also, I do not mention the bank rate until I hear the dealerships rate because there is always that chance they will be a point or so lower.

But yes, the main thing to remember when you buy a car is that the finance guy is hoping to make money off of you and often it can be more than they made on selling you the car. So, everything is negotiable to me.

Lastly, don’t be in a hurry. If you take an extra hour but save a 1000$, then I think of it as getting paid $1,000/hour, which I wish for every day!

edit: I will add one more thing. The finance people have gotten real slick at being on your side but really not. Many people talk about car salesman tactics but they are nothing compared to the finance people. So, since you mentioned this is your first new car purchase, I’d suggest you invite a seasoned car buyer to go with you. Even if they do nothing but agree to your agreements, it can be reassuring.

 

[Dude]

For that rate lowering tip - Probably isn’t a lie when dealing with most salespeople and financing people as they hold almost all the cards often leaving buyers at a disadvantage - so a little stretch on the pre-approved rate from another financial institution seems like a no brainer - like when my sister purchased a vehicle the dealership financing person lied on the rate choosing a higher number probably because he expected her to counter

 

[ELCouz]

The thing is here banks are not very interested in financing cars since its an asset that depreciate value and there is less collateral in case of non payments.

So rates from banks at least in Quebec 99% sucks ...6 to 9% APR is often standard unless financed with the mortgage.

Manufacturer credit is the best way most of the time here.

I got very good FICO score but I just don't know how much as Ford Credit I have leverage. Is the displayed Ford website APR what you can get with a +800 FICO?

Or the APR numbers are just a marketing gimmick?

 

[jkernitzki]

The two numbers to be aware of are the buy rate and the dealer rate. The buy rate is what the underwriter (the bank) offers to the dealer, the dealer rate is the buy rate plus the dealer’s markup. Dealing directly with a bank will always result in better terms, everything else being equal.

Special rates (like 0%) are subsidized by the manufacturer to move inventory that isn’t moving as well as they’d like. Unless what you specifically want falls in that category, don’t be suckered in by those. Remember, too, that you still have to qualify even if your choice is in that group. Think FICO 750 & up. It’s all designed to get you in, wear you down, and signed.

 

[Tigger]

Ok OP, I did a little google-machine work and I see your issue. And yes, I’d say it’s a little different than in US as I just experienced buying a used car two weeks ago and getting a 4.29% rate from my credit union.

In Canada I am seeing rates from 6.7% to 9.5% and in Quebec it is much higher in the 9 to 10.5 range … but remember, that you don’t have to borrow local (that is, you can use a national bank) and it may be cheaper to use a credit union (that may only be a a US thing).

So, with all that being said, it may be wise for you to talk to your dealers finance before the car arrives and start negotiating the best rate now by simply informing them, you need the best Ford can do to assure your going to own this Ford. Normally, I do not like to show my cards ahead of time but I now have a better understanding of your circumstances and think this could be helpful. Good luck!

 

[ELCouz]

Another question... is it worth to prequalify (Ford Credit) in advance?

 

[jkernitzki]

Another question... is it worth to prequalify (Ford Credit) in advance?

Prequalification only tells you the likelihood of approval at the time of prequal. It won’t change a thing at the point of actual financing. But it will put you on an unending mailing list.

 

[Mark S.]

Also, and this is just me so don't do it if you’re not comfortable, I lie.

Sometimes you don't even have to lie. When they tell you the lending rate just sit back in your chair with a shocked expression and say, "Wow! That's a lot higher than I thought it would be. I think I should check with my Credit Union before I commit to anything." Credit Unions generally offer the best available rates, so if the dealership's finance person offers you a lower rate after you mention a Credit Union it will likely be at or near the best rate they can offer.

Sponsored