Dealership says not accepting outside financing?!

[Monkey]

I was also given an invoice price of 31,437.40 of anyone is familiar. It's BS BB with convenience and tow package

Makes me wonder if they would honor the price if you pay cash or even let you pay cash as it's no different to them than if you used outside financing. It's probably something as stupid as they set pricing and figured in an incentive or kickback they get from Ford Credit that they don't want to give up if you pay by other means.

Rates through Ford Credit are not good right now. Actually they're typically not good through Ford Credit except for when they run their seasonal or holiday promotions. Unfortunately they're not doing that right now.

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[MJbronco]

Makes me wonder if they would honor the price if you pay cash or even let you pay cash as it's no different to them than if you used outside financing. It's probably something as stupid as they set pricing and figured in an incentive or kickback they get from Ford Credit that they don't want to give up if you pay by other means.

Rates through Ford Credit are not good right now. Actually they're typically not good through Ford Credit except for when they run their seasonal or holiday promotions. Unfortunately they're not doing that right now.

Yeah he told me what to expect in terms of rates through Ford credit and it wasn't close to what my bank is offering.

 

[Idontknow]

Dealerships make money on the financing. Typically when you go in there if you tell them what rate and terms you got with your bank they will either match or come in a bit lower. The rate they give you most often is not there bottom rate however.

Their finance managers work on commission. They make commission by having you finance through them and selling you the extended warranties. The dealership also makes money this way.

 

[Benanza]

So I was in market for BS BB, wanted the Area 51 but the one in transit to dealership was spoken for (I'm assuming there was deposit on it). They had same vehicle just carbonized gray on the lot and we talked leasing but I ultimately didn't pull the trigger. I recently was pre-approved through my bank and the Area 51 that was previously spoken for is now available.

I talked to the guy at the dealership today and he said they wouldn't be accepting outside financing on this vehicle...doesn't make sense to me and feel like they are playing hard ball trying to push me towards Ford credit or possibly leasing through them.

Is this typical or are they giving me the run around, any thoughts on how I should proceed? This is the vehicle I want. Also, I qualify for X-plan pricing which they will only take on orders, which is understandable....but not accepting outside financing doesn't make sense to me.

Thanks for any help!

The dealer doesn't make any extra for financing as the credit company is making the interest. The rate is set via the bank and sent over to the dealer. They however will work you on the payment price rather than a cash price allowing them to manipulate the way you look at the value. Outside financing is just a cash deal and if you have navy fed, they can't compete unless there was a 0.0 special rate from FMC. I could see them not wanting to do the leg work for you, like sending documents to the bank... but it seems too ridiculous. A cash deal is a cash deal. Less work for the same money, only difference is that the vehicle may sit a few extra days waiting on checks. Honestly it's sounds like this dealer is just not worth doing business with.

 

[MJbronco]

Dealerships make money on the financing. Typically when you go in there if you tell them what rate and terms you got with your bank they will either match or come in a bit lower. The rate they give you most often is not there bottom rate however.

Their finance managers work on commission. They make commission by having you finance through them and selling you the extended warranties. The dealership also makes money this way.

Yeah that's the other thing, I'll sit through all that and I won't be getting any of it

 

[MJbronco]

The dealer doesn't make any extra for financing as the credit company is making the interest. The rate is set via the bank and sent over to the dealer. They however will work you on the payment price rather than a cash price allowing them to manipulate the way you look at the value. Outside financing is just a cash deal and if you have navy fed, they can't compete unless there was a 0.0 special rate from FMC. I could see them not wanting to do the leg work for you, like sending documents to the bank... but it seems too ridiculous. A cash deal is a cash deal. Less work for the same money, only difference is that the vehicle may sit a few extra days waiting on checks. Honestly it's sounds like this dealer is just not worth doing business with.

I mean I have the pre approval check ready to go and everything

 

[MJbronco]

Dealerships make money on the financing. Typically when you go in there if you tell them what rate and terms you got with your bank they will either match or come in a bit lower. The rate they give you most often is not there bottom rate however.

Their finance managers work on commission. They make commission by having you finance through them and selling you the extended warranties. The dealership also makes money this way.

This kinda makes sense, the manager even told me you can refinance through bank after like 4 months. Which would mean they don't make any money on the loan other than some kinda of initial kick back and commission

 

[Benanza]

I mean I have the pre approval check ready to go and everything

It's an annoyance but there's no reason they should care. Honestly if you really want it, make the deal and payoff the loan with the credit union check. Just make sure there is no early payment penalties

 

[Mackiebronco]

Generally when they start throwing out offer sheets with financing from Ford, I already know where I am at with my credit union. I have formulated the whole process. I spent 9 hours to get the deal I wanted on my BS. They always try to jack you on trade in and interest rate on the new loan.

 

[MJbronco]

It's an annoyance but there's no reason they should care. Honestly if you really want it, make the deal and payoff the loan with the credit union check. Just make sure there is no early payment penalties

Yeah I have to reach out to Navy Federal and see what they can do

 

[MJbronco]

Generally when they start throwing out offer sheets with financing from Ford, I already know where I am at with my credit union. I have formulated the whole process. I spent 9 hours to get the deal I wanted on my BS. They always try to jack you on trade in and interest rate on the new loan.

Yeah my concern is they just end up selling it to someone else

 

[JerryC]

This kinda makes sense, the manager even told me you can refinance through bank after like 4 months. Which would mean they don't make any money on the loan other than some kinda of initial kick back and commission

In my experience you don't need wait at all to refinance. The four month wait is so they get paid their commission for getting you to use that lenders financing.

I refinanced a loan from Toyota to a credit union a couple of days after I bought it. Got the Toyota rebate then refinanced and dropped the rate a couple of points. The Toyota salesman actually hooked me up with that trick.

You can actually screw yourself by waiting. Some banks will refinance the loan at new car rates within a certain time frame or mileage. By waiting you could end up with used car rates.

 

[Idontknow]

This kinda makes sense, the manager even told me you can refinance through bank after like 4 months. Which would mean they don't make any money on the loan other than some kinda of initial kick back and commission

My friend is a finance manager over at Toyota. First thing they do is find out what you are looking for with a monthly payment. They will then run the credit. The bank kicks back lets call it 2% interest rate. But the finance manager is paid to not offer that amount he might come back and say hey so we managed to get a payment in your range at 3% over this many months how does that sound. The lowest rate that the bank kicks back is called the buyrate and a dealership generally isn’t going to volunteer that information up.

 

[Moltenburn]

Rare truck for invoice price.... BUY IT NOW, with FMC and refi next week with a credit union that offers a new car rate like me ruined above.

1. Good luck finding your area 51 for MSRP let alone invoice on a non ordered model.
2. They never honor the 4 months or else finance b.s. I have done this many times to secure a decent price on a hard to get vehicle. Go and refi a week later at the CU with best local rates.

 

[MJbronco]

Rare truck for invoice price.... BUY IT NOW, with FMC and refi next week with a credit union that offers a new car rate like me ruined above.

1. Good luck finding your area 51 for MSRP let alone invoice on a non ordered model.
2. They never honor the 4 months or else finance b.s. I have done this many times to secure a decent price on a hard to get vehicle. Go and refi a week later at the CU with best local rates.

Sorry for the misunderstanding, that was just the invoice price, not what they are selling it for.

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