Flex Buy 66 - 18% decrease

[circatee]

I have started seeing this new type of financing, called 'Flex Buy 66 - 18% decrease'.
This seems to be with Ford Credit, and a 1.9% rate.

Does anyone know what the 'catch' is, with this deal?
Initially I was thinking there would be a balloon payment of sorts. But, there isn't. As we know, the 'house always wins'. Hence, my question.

Thanks all.

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[Mizzle51]

https://www.griffinford.com/flex-buy.html


What is Ford Flex Buy?

Ford Flex buy is truly unique program allowing qualified buyers (thru Ford Credit) a payment over the first 36 months that is competitive with a lease. There are no mileage restrictions, however. The savings over these first 3 years is equivalent to a 15%-18% reduction from an equal monthly payment calculation. Customers in Waukesha, WI who sign up for the Ford Flex Buy program, can take home the loaded new Griffin Ford they desire, with all the advanced features to make their driving experience the best. Payments start our lower, then gradually increase over the last months of the purchase contract (aligning with rising income). Bottom line, your first 36 monthly payments are lower than those of a comparable 60 or 72-month contract!


Looks like you're getting lower payments on the first half of the financing and then the back half will be higher. And they add 6 months to the term to lower the numbers more.

My local CU does the 6 month option , they offer 60, 66, 72, 78 month terms.

 

[shogun32]

The savings over these first 3 years is equivalent to a 15%-18% reduction from an equal monthly payment calculation

which I did some spit-ball math is circa $100/mo on a 700/mo payment . Are people really running their personal finance so tight that this is attractive? What happens when the back-half goes into effect? They're gonna find an extra $200/mo? Or just be forced to sell it?

That same $40,000 Mustang financed for 72mo vs 60mo would accomplish the same thing and no ramp job on the payment.

Short of free money (<2%) cars should be paid off in 3 or 4 years, not 5 or longer.

 

[circatee]

A few good points by Shogun32. I would add, if someone immediately starts paying the higher monthly rate, they could get ahead, financially.

 

[Bobn57]

i took the flex buy option. i plan to pay it off before the 66 months and it reduces my initial monthly payments for the first 36 months. my credit union was at 1.74% but max was 60 months.

 

[ICU812]

This might be a good option for those that have jobs or a business that are seasonal, As the 1st 36 payments are much lower.
This allow the buyer to be able to pay the bill in the off season. and not be strapped , and attack the loan balance when their job/business season is in full swing. As long as there is no restriction on extra payments or early pay off, This would be Ideal for those type buyers.
Up here, Landscapers in the winter if there isn't much to plow are S.O.L. as far as income, same with home heating fuel drivers in the summer. etc.
As long as you are the type that pound the loan balance down when your job is in season and you are rolling in cash, it be a good option.

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