topic Ford Motor credit finance in Auto Loans

Ford Motor credit finance

Anonymous — Thu, 28 Jan 2016 09:21:54 GMT

Hi there I have been doing reasearch on these forums since about 6 months and now i serious need help in this area !!!!

Was driving past a ford dealership few days ago and I noticed a new 2015 Ford F-150 that I want and need but was Worried about putting a inquiry if the loan would be declined. So here's my situation.

Last year I financed a 2015 Dodge Grand Caravan Was in need of a car and went ahead and agreed to a 25% Intersted rate my payment is $604 per month non of my payment is going toward the principal and I do not like the minivan. My balance on the loan is 22,450 kbb values it at 14,000 so I'm guessing I'm nearly 10,000 upside down
After discounts and rebates the truck I want is 35,000 and plus I have a down payment of $5,000+$5000 rebates so my ? Is would this work with ford motor credit. Keeping this van is not a option please help !!!!!

Re: Ford Motor credit finance

Anonymous — Thu, 28 Jan 2016 13:22:48 GMT

@Anonymous wrote:
Hi there I have been doing reasearch on these forums since about 6 months and now i serious need help in this area !!!!

Was driving past a ford dealership few days ago and I noticed a new 2015 Ford F-150 that I want and need but was Worried about putting a inquiry if the loan would be declined. So here's my situation.

Last year I financed a 2015 Dodge Grand Caravan Was in need of a car and went ahead and agreed to a 25% Intersted rate my payment is $604 per month non of my payment is going toward the principal and I do not like the minivan. My balance on the loan is 22,450 kbb values it at 14,000 so I'm guessing I'm nearly 10,000 upside down
After discounts and rebates the truck I want is 35,000 and plus I have a down payment of $5,000+$5000 rebates so my ? Is would this work with ford motor credit. Keeping this van is not a option please help !!!!!

25% What are your scores?

Curious: What is your "need" for this truck?

Re: Ford Motor credit finance

cartwrna — Fri, 29 Jan 2016 01:04:50 GMT

I'll be the first to tell you, using "rebates" to cover up negative equity doesn't work well. The issue I see is that even after the rebates/DP you will still be financing the full price of the vehicle + TTL. The bank will not like to see that. Ford motor credit is very iffy with subprime credit (not sure if your still there, but the 25% rate says you may be), and no DP/rolling negative. They outright denied me when I attempted to roll negative in and I had scores of around 700 with great income and DTI. Since then I've realized rolling negative doesn't work, and if you take out a long term + high rate again you will just find yourself even farther in the hole. On that truck 38-39k financed with a 3% rate the payment would be around $610 a month on a 75 month loan (my truck is at this but it's diesel so I put a large chuck down. Those are my terms 3% 75 months). That's assuming you could get the rate down that low. If it was around your current rate or even at say 20, payment would be $900+. If you can swing it then I say go for it but weigh the options.

Re: Ford Motor credit finance

JBjunior — Fri, 29 Jan 2016 06:53:25 GMT

I would bet that when you were shopping for that van you wanted and needed it as well. My point is, don't let impulse "make" you make another bad decision. You have placed yourself in a bad position that only you can get yourself out of, getting in deeper isn't the answer. I would use the $5K to apply on the principle and try to get halfway to the surface on that loan. Find another $5K somewhere, through saving, and then get out from under that van and call it "even."

Re: Ford Motor credit finance

Anonymous — Fri, 29 Jan 2016 07:01:14 GMT

You may need a truck, but do you need a 2015 one? 25% is brutal and it will make you a slave to debt, do anything you can to change it. You would get better interest rates on most credit cards, I would check into a refi or getting a loan through prosper or lending club. (Score Dependent)

Re: Ford Motor credit finance

Anonymous — Fri, 29 Jan 2016 09:01:14 GMT

I was told don't Evan try to refinance the van to much negative Equity. Plus if I was to get the truck I would keep till I see a title I don't usually keep getting new cars but if I had to I would keep the van for a bit but the issue is like 70 to 100 is going to the principal every month and the van is only gonna decrease in value in time so...

Re: Ford Motor credit finance

Anonymous — Fri, 29 Jan 2016 09:07:55 GMT

I got a interest rate of 25% when I got the van last year first time auto loan with baddies and no prior history and a score of 490 however since then I have got my score to 690 range with a few credit cards with only 10 percent useage on them and removed the baddies. Oh and I need the truck for work and personal reasons

Re: Ford Motor credit finance

Anonymous — Fri, 29 Jan 2016 09:13:31 GMT

I have two kids and had no transportation at the time and only had a 490 score really never cared about my credit been since then proudly I have raise my score being more serious about my credit and now I'm stuck in last years jam I'm not considered about the truck loan beacuse I would keep to payed off just if I stay in this van I would only get deeper Evan if I keep throwing money at the principal my monthly payment is pretty much just interest so I would rather go into a new 40k if I would wind up paying the full price and owning the truck in 72 months that's ok with me but do you think this is possible ?

Re: Ford Motor credit finance

cartwrna — Fri, 29 Jan 2016 14:30:17 GMT

I don't think it's possible, especially with that much negative equity. You can try and see if anyone would snag on it but you may end up with just a bunch of inquiries in the process. May be best to just talk with a finance manager and see what they think before having them even pull your credit. The thing about KBB is that, dealerships don't go by that. They go by wholesale value. Everytime I have gotten a trade in value for a vehicle it has always been 2-5k less than what KBB says, so you may be farther upside down than you think as well. They could also give you an estimated trade in value. I attempted to do one for you online but they don't have the 15' Caravan values yet. My truck just showed up on there a few weeks ago to get a trade in value.

Re: Ford Motor credit finance

settleordelete — Fri, 29 Jan 2016 14:38:31 GMT

This is what I would do... Take the $5000 and buy a cash car. Sell the mini van and borrow the difference owed from a credit union to pay off the loan balance. Then once I've paid that small $10k loan, thats when I would buy that truck. I bought a new F150 in 2011 financed through Ford for 72 months at 4.9 apr. My score was over 700 at the dealer. I had taken out another auto loan through Toyota the year before. Good luck to you.

Re: Ford Motor credit finance

Anonymous — Sat, 30 Jan 2016 01:38:02 GMT

First, congrats on your massive score increase over the last year! That takes serious dedication and is not an easy task.

I still think I would try to Refi I would definitely research it more. Maybe try somewhere that includes GAP insurance with the loan, I know State Farm does this. We have to do something about that 25% any way you look at it. Even if you sell the van its value will not pay off your loan. The suggestion to cover the difference with a loan from a credit union is a good one though, if you have no need for both cars. You need to address the van before even considering a new truck in my opinion.

As you have learned vehicles depreciate dramatically in the first few years of ownership. Why would you want to take on that depreciation on the new truck, when you can let someone else take the hit for you? Look for a nice, low mile used one and save a pile of money and pay it off quicker. Imagine what you could do if you had no car payment!!! The more you can sacrifice on the truck the better this plays out for you.