Ford Credit Dealer Kickback Scam(sort of)

[phrenetiK]

Apologies if this is already a thread but to anyone buying a new mustang.


My dealer negotiated a price with me but it required that I take ford credit financing and make 3 payments before refinancing at my local credit union. Mazda did the exact same thing to my girlfriend back in January, except her discount was $1500 instead of $500 for going with Mazda financing for 3 months.

i figured it must be legit but I did not want to pay the extra 100$ over the first 3 months for the horrible rate so I got up and started walking out the door. the guy then knocked the $100 off the negotiated price of the first 3 months interest so i sat back down and bought my car.

i was telling a friend about it and he said ford did the same thing to him on his f150, but he went to a credit union after receiving his license plate, right before the first payment was due and refinanced the car, and the dealer didn't get their kickback.

the finance guy was quite an asshole despite how awesome my salesman was, so I decided to refinance as soon as I got my registration sticker in the mail. I went from 3.8% with ford to 1.74%. I could have gotten 1.49% which is the best the credit union offers to anyone but I went with a 6 year loan.

so anyways, take the lower price they offer you through ford credit, then immediately refinance through a local credit union with a MUCH better rate. they are straight out lying when they say you cannot refinance before 3 months, they just don't WANT you to. if your finance guy wasn't a total douche you might want to let him make his money, especially if they will offer you the first 3 months difference...but if he is an asshole you can get your revenge lol.

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[prostovovatt]

This is not exactly a scam. When you get incentives, they use them as cash down - you can refinance right away but if you haven't at least made that much in payments they will send you a bill for the money they put down for you.

Had the same thing happen to me with my hyundai.

 

[phrenetiK]

that's not how it works with ford credit. read this.

http://www.f150online.com/forums/20...can-i-refinance-ford-motor-credit-loan-5.html

 

[CaptainCrash]

Bullshit - They want you to make 3 payments so that they get there commission.

My ford dealer told me take the Ford credit to get the 500 off and then just pay the whole thing off or refinance it. They understood I could get a better rate else where with my credit score.

Another one the dealers do is try to use the interest rate as a tool to get you to buy a warranty. By offering a lower rate if you buy warranty. If a dealer ever does this to me, again I will stand up and walk out on the deal. The interest rate is based on your credit score not buying a warranty. Once they lose some sales at that point after 3/4 hours haggling - they will learn the hard way.

Know your credit score and understand what that means. Get approved for a loan before you buy and you will be amazed how hard the finance guy/gal at the dealer to work to better it, when there is money on the line for them.

Basically don't trust the B*****ds!

Of course not all dealers are like this!

And if you have questions - ask Ford Credit not the dealership or in the case of a warranty the company it is with. The dealer will stall or lie in order to get there commissions.

 

[Texican1911]

Several things:
a) there is no Ford Motor Credit rebate on a Mustang. It's just Customer Cash.
b) the salesman/finance guy do not get paid on rebates
c) if you buy something that DOES have a Ford Motor Credit rebate and you refi in <90 days, FMCC charges the rebate back to the dealer. So in other words, Ford pays for $x of your car for financing through them. If you refi in under 90 days, they cancel the check to the dealership. It's not BS, it's what happens. It doesn't affect commissions.

 

[shockin330i]

Some people forget that dealerships are not "non-profit" organizations. All banks pay dealerships to use their financing, hence why you usually get a better deal when you finance with them.

If the dealership gave you a discount for the incurred interest I don't see how they are screwing you. If anything you just screwed them.

 

[PhillMcKraken]

Honestly the only thing about this side of dealerships that rubs me the wrong way is how they will run your credit without even asking you. THAT is more scummy than the fact that they make money for getting you financed usually.

 

[shockin330i]

Honestly the only thing about this side of dealerships that rubs me the wrong way is how they will run your credit without even asking you. THAT is more scummy than the fact that they make money for getting you financed usually.

That goes dealership by dealership. I won't pull anyone's credit unless they authorize me to do so. I instruct all my salesmen to explain this to the customer's as they are filling out the credit application.

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