Question about APR

[Trav]

Hi Guys,

I was looking into financing a 2015 Mustang GT Premium. I was curious if the APR is negotiable or if the Ford APR (pursuant to the build/price site) for the term of the finance always controls.

I am willing to put down a larger down payment than required to bring down the monthly costs. I was wondering if anyone dealt with a dealer that lessened the recommended APR accordingly.

Thanks,
Trav

Sponsored

 

[Tamadrummer88]

Hi Guys,

I was looking into financing a 2015 Mustang GT Premium. I was curious if the APR is negotiable or if the Ford APR (pursuant to the build/price site) for the term of the finance always controls.

I am willing to put down a larger down payment than required to bring down the monthly costs. I was wondering if anyone dealt with a dealer that lessened the recommended APR accordingly.

Thanks,
Trav

If a local bank in your area has a better rate than FMC then they will go with that, providing your credit is good enough to qualify for it. I think right now the finance rate with FMC for a 72 month loan is 4.9%. Your local bank or credit union could probably do better than that.

 

[icarumba]

Surprisingly, yes.

I told them what payment and term I wanted with no out-of-pocket (just my trade), and they were able to make it work with a 2.85% loan from Suntrust Bank. I had no idea that they could actually do better than what was being offered by Ford! :clap2:

 

[francisco511]

My credit union chevron fcu offered me 2.99 on 72 mo.
My dealer was able to beat them at 2.49 72 mo through another bank not ford.
So my recommendation is find the lowest through a credit union get it in writing then have them try to beat it.

 

[badass03ragtop]

I would refer you to this thread: http://www.mustang6g.com/forums/showthread.php?t=15390

Here is what I posted there:

Just make sure you make them compete! This works best if you have excellent credit, but it works no matter what.

For example, when I was considering financing, Navy Federal Credit offered 1.99 for 72 to start, then gave .25 off for retired pay, then another .25 off for 25 years of membership. Now 1.49. Called USAA and told them what rate I had gotten. Since it was a competitive rate, they beat it. Ford couldn't/wouldn't go lower, but a local bank the dealership used would. Bottom line would have been .90 for 72 months... Unheard of in published rates, but if they want your business, they'll go lower if you have a competing quote. Just "saying" you got "this rate" from a competitor doesn't work. It has to be provable.

Just for the record, I often take a loan for a longer term, as long as I can get a low rate, just in case something bad happens, but have never taken term to pay the loan, so I suggest if this is your strategy, make sure the institution you choose doesn't have any penalties for early payback.

In the end, I decided not to finance. My FICO is just under 820, so I didn't see any advantage to financing.

 

[Ruby305GT]

I would refer you to this thread: http://www.mustang6g.com/forums/showthread.php?t=15390

Here is what I posted there:

Just make sure you make them compete! This works best if you have excellent credit, but it works no matter what.

For example, when I was considering financing, Navy Federal Credit offered 1.99 for 72 to start, then gave .25 off for retired pay, then another .25 off for 25 years of membership. Now 1.49. Called USAA and told them what rate I had gotten. Since it was a competitive rate, they beat it. Ford couldn't/wouldn't go lower, but a local bank the dealership used would. Bottom line would have been .90 for 72 months... Unheard of in published rates, but if they want your business, they'll go lower if you have a competing quote. Just "saying" you got "this rate" from a competitor doesn't work. It has to be provable.

Just for the record, I often take a loan for a longer term, as long as I can get a low rate, just in case something bad happens, but have never taken term to pay the loan, so I suggest if this is your strategy, make sure the institution you choose doesn't have any penalties for early payback.

In the end, I decided not to finance. My FICO is just under 820, so I didn't see any advantage to financing.

I would have financed for under 1 percent APR any day. Keep the rest of the good old money in my pocket or invest it. I got a 2.74 rate, and even if i had the cash, the money I can make from 40k trumps the interest I will pay over the life of the loan.


Sent from my iPhone using Tapatalk

 

[Old 5 Oh]

Hi Guys,

I was looking into financing a 2015 Mustang GT Premium. I was curious if the APR is negotiable or if the Ford APR (pursuant to the build/price site) for the term of the finance always controls.

I am willing to put down a larger down payment than required to bring down the monthly costs. I was wondering if anyone dealt with a dealer that lessened the recommended APR accordingly.

Thanks,
Trav

My dealer offered me 1.9 in November, but I was already set with my CU at 1.99, which is only about $2.00 a month more. Don't pay a high rate. CU's are very competitive right now.

 

[caustin69]

Surprisingly, yes.

I told them what payment and term I wanted with no out-of-pocket (just my trade), and they were able to make it work with a 2.85% loan from Suntrust Bank. I had no idea that they could actually do better than what was being offered by Ford! :clap2:

I was able to get 1.89 @ 72mo from Suntrust Bank.

 

[captainGT]

Asked our salesman about loan rates because our credit union is offering 2.19%. He said the dealership is very aggressive trying to match or beat anyone. They came up with 2.24% minus another.25% if you open a savings or checking account with them (Police and Fire Federal Credit Union)and have the monthly payment taken out automatically.

 

[badass03ragtop]

I would have financed for under 1 percent APR any day. Keep the rest of the good old money in my pocket or invest it. I got a 2.74 rate, and even if i had the cash, the money I can make from 40k trumps the interest I will pay over the life of the loan.


Sent from my iPhone using Tapatalk

I can understand that line of thinking, but my portfolio is quite secure, so I'm not hella concerned with the difference. I just prefer not having a payment.

 

[bobbyh]

If a local bank in your area has a better rate than FMC then they will go with that, providing your credit is good enough to qualify for it. I think right now the finance rate with FMC for a 72 month loan is 4.9%. Your local bank or credit union could probably do better than that.

That is a terrible rate if that is what FMC is offering. I concur; you can get 1/2 that rate or better through most credit unions or banks.

 

[Sterling Archer]

Just give it a few months and that rate will come down. Ford credit is intentionally lowering the APR on a lot of platforms (like I got 0% over 72 for my FoST) to attract younger customers and build a good relationship. The mustang rate is only high because it's a new platform with a lot of attention.

Sponsored