Question about auto loan?

[CoreyGSHS]

Hi everyone! 

So I am looking at the 2015 Ford Mustang (around $26,500) and I am going to be financing it. I only have one question, actually. 

Whenever I go to the Ford website, they have the longest term listed as 72 months. If I shop around and find an auto loan by a bank or credit union online that deals with 84-month auto loans, would I be able to use it in this case? Or whenever I purchase a new Ford vehicle, can I only finance it for 72 months? 

If so, how would I go about doing that? Just apply for a loan online for 84 months and if they give me a great rate, do I print it out and take it to the dealership or how does it all happen?

Thank you folks all very much! 

[Anonymous]

I just bought a car so I can give you some pointers that really helped me out....

First, know your myfico scores so you know what interest rates you should be getting VERY IMPORTANT! Second, find the car you really want.  Be prepared to buy it that day(ie checkbook in had.) Then before you ever give them your ss# negotiate the best possible out the door price. DO NOT let them pull your credit until you have a final sales price. Finance guys love to play around with your payment that all can be done once you agree on a price. Once they pull your credit you will get alot of hard inquiries on your credit report ( I got 10 in total).  As long as they are all within 14 days and for an auto loan they only count as one hard pull but be warned if you shop mutliple dealerships they are going to ding the sh#t out of your credit report and if you do so more then 14 days apart it will lower your fico score!! This why I think its best to find the car you want and negotiate hard.

Do not be afraid to be agressive.  Suggesting you will think about it and call them later freaks them out fyi.  They know if you leave chances are you will not come back. Ask for any extras up front ( floor mats, cargo mats, full tank of gas, an extra set of keys, free oil changes ect)  most dealers will accommodate small requests to close a deal.  In my case I got an extra smart key..these bad boys cost $300-400  at the dealership so its a nice add on.

Once you reach your price the finance department will shop you around to multiple banks to get you the best deal.  Just tell them you want an 84 month term and they will go to the banks that can offer that.  When they do come back with an 84 month loan push back on the apr(this is why u need to know your fico scores so u know if they are being competitve).   When you sit down in the finance guys office and he gives you the best loan offer...tell him the apr is still too high and you need to think about it.  He will go back to the banks and push them harder to get you a better apr.  Dont let them upsell you on gap insurance and extended warranties.  The advantage of dealer financing is they do this all day and have lots of banks to choose from based on your credit profile and loan temrs you want.  You should aslo get your beacon fico 04 or 08 scores from the finance dept..which in my case were higher then I thought.  Good Luck...and always put down as much cash as possible. Also I am sure you know 7 years is a not idea but hey no judgement here.

[pipeguy]

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@CoreyGSHS wrote:

Hi everyone! 

So I am looking at the 2015 Ford Mustang (around $26,500) and I am going to be financing it. I only have one question, actually. 

Whenever I go to the Ford website, they have the longest term listed as 72 months. If I shop around and find an auto loan by a bank or credit union online that deals with 84-month auto loans, would I be able to use it in this case? Or whenever I purchase a new Ford vehicle, can I only finance it for 72 months? 

If so, how would I go about doing that? Just apply for a loan online for 84 months and if they give me a great rate, do I print it out and take it to the dealership or how does it all happen?

Thank you folks all very much! 

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Just some advice, don't ever take an 84 month auto loan out on a "generic" car.  If you need an 84 month loan for a $26k car, you should be looking at a different car-loan - or amount.

I understand that the 2015 Mustang is a revised "all new" model, but you will NEVER be out from under this loan on that car. At 4 years when its a dime a dozen old model its going to be worth much less than you owe, it will be underwater when you leave the dealership and at 72 months you might be at a break even point.

At 3.49% a $26k auto loan over 84 months will cost you $3400 in just interest.

Never shop a car loan based on the afordability of the payment - that's the number one way a dealer will overcharge you for a purchase "payment shoppers" are easy targets (payments are a factor of course).  "Leasing" is another way to paymet shop where the "easy payments" are theselling point - leasing has its down sides, believe me if dealers (the auto industry) is pushing something, it's to their advantage, but YOU get i and get out based on cheaper payments with no 7 year obligation

[CoreyGSHS]

I'm going to have my mother co-sign for me, but I am going to be making the monthly payment. She was given a 5% APR on my current $14k vehicle about 2 years ago whenever we purchased it, but we went straight to the dealership and applied for a loan without shopping around online or going to credit unions.  Do you think she will be able to find a better loan this time? By the time it comes when I get the Mustang, I'll have about 8-10 months of good credit history with my only one credit card, but I probably won't get a good APR myself because I've had no "loan history" before... Plus my income isn't sufficient enough (yet I'll be able to afford the car payment and insurance monthly). 

What's the best places online for a low APR and would Ford let me get the loan with any bank I find? 

[CoreyGSHS]

I also forgot to mention I am putting down $4,000-$5000. 

[CoreyGSHS]

*Bump*

[0REDSOX7]

First, if you're going to try outside financing, try a local credit union. If you're not a member, find one you can join and inquire about it there.

Second, if you do dealer financing, tell them you will not drive the car off the lot until the financing is 100% done. Many times, dealers pull what's known as "spot financing" and you think all is well until they call you back and say the bank rejected the deal and your terms have changed.

Also, as mentioned. Avoid an 84 month lease as much as you can. It's not worth it.