Question about FINANCING the Bronco Sport...

tropical2022

Badlands
Well-Known Member
First Name
Tropical
Joined
Mar 9, 2022
Threads
7
Messages
108
Reaction score
111
Location
AZ
Vehicle(s)
Ordered Bronco Sport... now waiting...
I'm going to embarrass myself with this ignorant question about financing the Bronco Sport I just ordered to purchase but haven't received yet because it's not being built until July.

Am I FORCED to use the dealer's lender in order to finance the purchase of the vehicle? I want to put 5k down using credit card that has 0%APR for next 15 months. Dealership I ordered the Broncos Sport with said they don't allow down payments using credit card more than 5K max. This is a bummer because I wanted to put at LEAST 15k down using my credit card which has 0% interest for 15 months but dealer won't allow it.

I just read on Google that some car dealerships have "pre-computed interest"... NOT good!! This means even if I pay off the car being financed financed very early I will NOT pay LESS interest... I will still be screwed!

So now I have to ask the car dealership I ordered the Bronco Sport with though Ford's website whether their car loan is a "simple-interest loan" or the EVIL "precomputed interest"?

Since I have to have a very ridiculously SUPER expensive medical procedure (my life depends on) later this year that's not covered by insurance... I really desperately need to get this monthly car payment to be as LOW as possible so I was going to select 84 month finance term and then pay it off super early. But not if I'm going to be screwed out of thousands of dollars in interest because of the way the lender structures this loan with "precomputed interest" FIXED interest! 🥶😰😨😱

 

rdc17

Badlands
Well-Known Member
Joined
Dec 18, 2020
Threads
7
Messages
273
Reaction score
350
Location
VA
Vehicle(s)
BL+BL
You aren't required to use Ford/dealer financing, but you'll need to have the outside financing lined up by the time you go to sign all the paperwork and take delivery.

Most dealers have some sort of cap on credit card payments due to the CC processing fees.

When you take out a loan that's not 0% you are agreeing to pay interest. No lender is going to agree to let you pay it off early without paying the full term interest after you've signed on the dotted line. They want to make money.
 

Benanza

Outer Banks
Well-Known Member
First Name
Ben
Joined
Aug 6, 2021
Threads
13
Messages
526
Reaction score
925
Location
NJ
Vehicle(s)
Ford Bronco Sport
At 2-4% fees on a sale it adds up quickly for their loss. You might want to see if the deal is the same if you use a balance transfer check.

As for the loans, most of the fixed loans revolve around leases and poor credit which limits the options available for financing. The majority of the rest of the loans are simple interest. As the rates get you the worst on the front end, it won't feel like you get to save that much when you go to pay it off later down the road.
 

Econoline

Badlands
Well-Known Member
Joined
Aug 7, 2020
Threads
11
Messages
208
Reaction score
213
Location
socal
Vehicle(s)
2022 BS BL Carbonized Gray, steelies+tow+360
With financing through Ford Credit there is no interest penalty for early payoff (prepayment) of the loan. The contract says this:

"You may prepay. You may prepay all or part of the unpaid part of the Amount Financed at any time. If you do so, you must pay the earned and unpaid part of the Finance Charge and all other amounts due up to the date of your payment."
 
OP
OP
tropical2022

tropical2022

Badlands
Well-Known Member
First Name
Tropical
Joined
Mar 9, 2022
Threads
7
Messages
108
Reaction score
111
Location
AZ
Vehicle(s)
Ordered Bronco Sport... now waiting...
Thanks for the replies!

My FICO is in the 800s so I have excellent credit. So I should try to find outside financing.

I'm forced to use credit card to put any amount down because the medical procedure I need is taking too much.

I'm about to say screw it and just put 5k down with my 0% interest credit card... but then I'll have a $900 something monthly payment for 48 month term 😿 FORD websites shows 2.9% interest for that.
 


OP
OP
tropical2022

tropical2022

Badlands
Well-Known Member
First Name
Tropical
Joined
Mar 9, 2022
Threads
7
Messages
108
Reaction score
111
Location
AZ
Vehicle(s)
Ordered Bronco Sport... now waiting...
With financing through Ford Credit there is no interest penalty for early payoff (prepayment) of the loan. The contract says this:

"You may prepay. You may prepay all or part of the unpaid part of the Amount Financed at any time. If you do so, you must pay the earned and unpaid part of the Finance Charge and all other amounts due up to the date of your payment."
So if my chicken brain understood that correctly... that is fixed interest? I still pay ALL the interest even if I pay it off early?

I say this because it says "you must pay the earned and unpaid part of the Finance Charge " isn't the interest part of that?
 

Econoline

Badlands
Well-Known Member
Joined
Aug 7, 2020
Threads
11
Messages
208
Reaction score
213
Location
socal
Vehicle(s)
2022 BS BL Carbonized Gray, steelies+tow+360
So if my chicken brain understood that correctly... that is fixed interest? I still pay ALL the interest even if I pay it off early?

I say this because it says "you must pay the earned and unpaid part of the Finance Charge " isn't the interest part of that?
No. You only pay interest "...up to the date of your payment." When your prepayment is made the loan is paid off in full and no further interest would accrue.
 
OP
OP
tropical2022

tropical2022

Badlands
Well-Known Member
First Name
Tropical
Joined
Mar 9, 2022
Threads
7
Messages
108
Reaction score
111
Location
AZ
Vehicle(s)
Ordered Bronco Sport... now waiting...
No. You only pay interest "...up to the date of your payment." When your prepayment is made the loan is paid off in full and no further interest would accrue.

Cool I see thanks, so it's like a credit card (not pre-determined fixed interest).

I'll call Ford's financing dep and see what I need to do in order to use their financing. Is it a possibility that the dealership won't allow me to use Ford's financing?

How does the dealership make money if I use Ford's financing?
 

SportWest

Badlands
Well-Known Member
Joined
Dec 6, 2020
Threads
1
Messages
335
Reaction score
452
Location
USA
Vehicle(s)
22 Bronco Sport Badlands (ordered)
"Am I FORCED to use the dealer's lender in order to finance the purchase of the vehicle?"

Nope, the dealer has Ford Credit + their network of lenders. I always come with terms from my credit union "in hand" and the dealer always meets or beats them, so I go with the dealer's lender.
 

Petroph

Badlands
Well-Known Member
Joined
Feb 16, 2022
Threads
4
Messages
199
Reaction score
110
Location
Arkansas - United States
Vehicle(s)
2014 FX4 F150
I would've thought if anything the Ford Financing would be the best deal then your traditional lender. I didn't think you could utilize some sales or incentives using other forms of financing. Maby I'm wrong, but my reading around here seems that ford financing seems to be some of the lowest APRs compared to traditional banks or lenders.
 


HomePeace

Big Bend
Well-Known Member
Joined
Apr 21, 2022
Threads
0
Messages
85
Reaction score
96
Location
Bay Area, California
Vehicle(s)
2022 Bronco Sport Big Bend
Purchased a 2014 Escape Titanium for my mother and the financed amount was 12k at 5.9 % (Dealer fed us a line of bull about use car interest rates, her FICO is 850). Did 48 months and paid 600-1k payments each month for about 15 months and paid only about 20% of the estimated interest from the total loan.

On my sport we sold ourselves as having crap credit, negotiated the price down with them expecting a killing on the interest. They had an ADM of 6k which we got down to $500. Waited to get an out the door, then let them run our credit , 20k down and took their 0.9%.36mos and total interest over the term was a whopping $180. They tried to sell us everything under the sun and really got pushy.

I'll admit i stupidly accepted their fake First Protect Warranty then cancelled that and bought a Ford ESP for 60% less from Granger.
 

kyle_conrad

Outer Banks
Well-Known Member
First Name
Kyle
Joined
Nov 29, 2021
Threads
6
Messages
157
Reaction score
189
Location
Richmond, VA
Website
kyleconrad.com
Vehicle(s)
Ford Fiesta
I would've thought if anything the Ford Financing would be the best deal then your traditional lender. I didn't think you could utilize some sales or incentives using other forms of financing. Maby I'm wrong, but my reading around here seems that ford financing seems to be some of the lowest APRs compared to traditional banks or lenders.
Ford's rates on the BS right now are pretty middling. My dealership beat their rate by almost a full point, and I'm honestly probably going to refinance it after 90 days and (fingers crossed) beat that by another 2+ points.
 

SportWest

Badlands
Well-Known Member
Joined
Dec 6, 2020
Threads
1
Messages
335
Reaction score
452
Location
USA
Vehicle(s)
22 Bronco Sport Badlands (ordered)
Ford's rates on the BS right now are pretty middling. My dealership beat their rate by almost a full point, and I'm honestly probably going to refinance it after 90 days and (fingers crossed) beat that by another 2+ points.
Do you mind sharing which lender you're using for the refinance? Shopping rates now since my Sport should arrive in the next ~2 months.
 

kyle_conrad

Outer Banks
Well-Known Member
First Name
Kyle
Joined
Nov 29, 2021
Threads
6
Messages
157
Reaction score
189
Location
Richmond, VA
Website
kyleconrad.com
Vehicle(s)
Ford Fiesta
Do you mind sharing which lender you're using for the refinance? Shopping rates now since my Sport should arrive in the next ~2 months.
I've gotten good rates from Navy Federal Credit Union and Pentagon Federal, but I know other folks have recommended Lightstream. Worth looking into local credit unions to see if there are any around you with good rates that you can join too.
 

BravoAlpha

Badlands
Well-Known Member
Joined
Jan 21, 2022
Threads
1
Messages
107
Reaction score
160
Location
Oklahoma
Vehicle(s)
Excursion Expedition Bronco Sport
I would've thought if anything the Ford Financing would be the best deal then your traditional lender. I didn't think you could utilize some sales or incentives using other forms of financing. Maby I'm wrong, but my reading around here seems that ford financing seems to be some of the lowest APRs compared to traditional banks or lenders.
you‘d think. I’ve financed my last 8 Fords with Ford credit… including my BS BL. 48mo @ 2.9. But when I picked up my new Expedition last month FC was awful…something like 7.9
Dealer had a local bank that they are close with.. got 60mo @2.79.

local credit unions and USAA are awesome.

I don’t believe Ford Credit cares about credit scores. They have never done a hard inquiry on me. All they’ve ever asked was employment and looked at MY previous personal standing with Ford Credit. Whether you have an 850 or a 500 FICO, the current offer is the offer for all

 

 
Top