Any idea on financing kickbacks to dealers?

[BriSco]

I pick up my ordered Ranger next week. I'm prepared to pay cash, but wondering about dealer financing to get a better deal.
I'll payoff at the earliest opportunity that the contract allows. Sometimes after three payments or so. Not sure about Ford Credit.

Any experiences in this regard? What can I expect as a discount for financing?

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[Hootbro]

Unless Ford credit advertises it as an incentive, I would not count on it from them.

As to dealer financing kickbacks, you have to talk to your particular dealer on that situation as many will not do it or the amount they give will differ. You are basically asking them to give up points on the loan that they normally would not even offer.

That being said, the few times I have received incentive either through brand financing or dealership financing, it has been in the $500 to $750 range.

 

[FloppyKnockers]

Just my experience, but Ford and the dealer I went to offered no specials or extras if you finance with them, finance outside, or pay cash. Not sure if this changes regionally, seasonally, or both.

If they do have a special, I would just make darn sure there is no pre-payment penalty.

 

[BobGoesFishing]

Ford is only doing deals right now on vehicles hey have to many of, I did get a $750 returning customer credit but beyond that nothing. At least in my area, Ranger inventory is not deep, but you can get an F150 for 0% right now, lots to be had.

 

[BriSco]

Thanks. I just stopped by the dealer and the sales rep confirmed no financing incentives.

 

[1depd]

That being said, the few times I have received incentive either through brand financing or dealership financing, it has been in the $500 to $750 range.

A lot of these "standard" incentives aren't much in value anymore. I recall receiving a $750 incentive on my 2015 F-150 (paid ~$35-$40k). I financed it, then paid it off when I received my first bill. With inflation and the price of new vehicles now, those <$1000 incentives aren't much of an incentive.

 

[1depd]

Thanks. I just stopped by the dealer and the sales rep confirmed no financing incentives.

Give it a couple months. I figure there will be larger incentives starting in December/January when the 25's are about to hit the lots. The financing rates will most likely start dropping within the next month or two.

 

[Hootbro]

A lot of these "standard" incentives aren't much in value anymore. I recall receiving a $750 incentive on my 2015 F-150 (paid ~$35-$40k). I financed it, then paid it off when I received my first bill. With inflation and the price of new vehicles now, those <$1000 incentives aren't much of an incentive.

For me, they were never a make or break part of the equation on purchase but still took them as it was leaving money on the table regardless.

 

[jezzza]

Do majority of buyers in the US use dealer financing, organize their own or pay cash?

 

[Hootbro]

Do majority of buyers in the US use dealer financing, organize their own or pay cash?

Majority of buyers in the USA use dealer "captive" financing.

 

[BriSco]

For me, they were never a make or break part of the equation on purchase but still took them as it was leaving money on the table regardless.

That’s what I always thought as well which is why I used the word kickback. I was not referring to ford incentives. Dealer used to get a rebate from financing companies for writing financing terms. The higher the % rate, the higher the rebate.

That being said, I paid cash ( actually a personal check) but wondered if I might have left some money on the table.

 

[Blackiosh]

Thanks. I just stopped by the dealer and the sales rep confirmed no financing incentives.

Speaking of dealers and financing, this week, I had a deal in place for a Ranger Raptor at a dealership in Topeka. They were actually going to charge me $1,000 for NOT financing with them. They also had a mandatory (which they would not waive) $1,300.00 extended warranty covering one year of tire road hazard and windshield replacement. Also, a $700.00 doc fee. I declined those as well as the truck. I guess I will continue to wait for mine to be built.

 

[1depd]

For me, they were never a make or break part of the equation on purchase but still took them as it was leaving money on the table regardless.

I agree $700 is $700. Heck, I still bend over to pick up pennies even though I might not stand up before hitting the pavement, because a penny is a penny. For Ford to call it an incentive, it really isn't much of one.

 

[SubaruRaptor]

I pick up my ordered Ranger next week. I'm prepared to pay cash, but wondering about dealer financing to get a better deal.
I'll payoff at the earliest opportunity that the contract allows. Sometimes after three payments or so. Not sure about Ford Credit.

Any experiences in this regard? What can I expect as a discount for financing?

Ford has no penalty for paying the loan off early. If you finance through the dealer, they will ultimately hand the loan off to a local credit union (at least that is what my dealer is doing). As others have mentioned, there are no incentives for Raptors. They will want a cashiers check if you are paying cash.

 

[SubaruRaptor]

Do majority of buyers in the US use dealer financing, organize their own or pay cash?

Most people are trading a car in and using dealer rates to finance since it can all be done "in-house". There are folks who secure financing at their local banks or credit unions, its generally a bit more work but a better rate long term. A small percentage then the other 2 options is people paying in cash in full. You just generally dont see that a lot above 50k but it does occur. Generally speaking you are better off not buying a car in full or putting down like 75% in cash when you purchase. You generally want to stay under 50% of the cars value when you buy. The reason is to protect you from depreciation and the fact that you can make more money on the free cash by sticking it in a high interest savings account over the course of a loan.

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