FYI Ford loans

[NoMoreE46]

Ford Removes Minimum Score Requirement For 84 Month Loans

https://jalopnik.com/ford-wants-to-suck-more-people-into-84-month-loans-1847839621

[4sallypat]

Wow, sounds like Ford Motor Credit is venturing into with Fintech banking or "predatory" lending ??

[sccredit]

While they are removing a minimum FICO score they still have their own algorithm to approve/deny/price loans

[4sallypat]

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@sccredit wrote:

While they are removing a minimum FICO score they still have their own algorithm to approve/deny/price loans

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Yes but how much more interest is charged to a sub prime customer ???

I'd like to know if Ford using it's new credit algorithm will affect those with good credit ?

I am on a reservation list for the new Ford Lightning EV truck and wondering which finance method to use:

• Ford Option (hybrid finance/lease)
• Ford Red Carpet lease
• Ford Select financing
• Ford traditional financing - 72 or 84 months ?

The only reason I may go as high as 72 or 84 months is that the most expensive parts: BEV battery & motors are warranted for 8 years....

[sccredit]

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@4sallypat wrote:

---

@sccredit wrote:

While they are removing a minimum FICO score they still have their own algorithm to approve/deny/price loans

---

Yes but how much more interest is charged to a sub prime customer ???

I'd like to know if Ford using it's new credit algorithm will affect those with good credit ?

I am on a reservation list for the new Ford Lightning EV truck and wondering which finance method to use:

• Ford Option (hybrid finance/lease)
• Ford Red Carpet lease
• Ford Select financing
• Ford traditional financing - 72 or 84 months ?

The only reason I may go as high as 72 or 84 months is that the most expensive parts: BEV battery & motors are warranted for 8 years....

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I highly doubt that it will have any affect on prime customers. As far as what is charged to subprime, who knows. I remember when I was 18 they financed a brand new $15k truck for me at 18% interest. Interest rates are lower now than they were then but I don't know what the rates are that they charge subprime. As far as your Lightning, that will depend on your appetite for leases, balloon payments, etc. I have leased in the past and it worked out fine but the truck I bought last month I financed because I will keep it longer. If you're planning on keeping the Lightning 8 years the lease doesn't make a lot of sense to me. 

[Anonymous]

If  you can get an extremly low APR, such as 0% then I don't really see the issue with 84 month loan. It certainly makes ever increasing auto prices more affordable in the long run, but you also had better want that rig for 7 years. That's a long to time to be with the same vehicle especially for someone like me who likes to try out different things once in a while.  You've got to really love that car.

However, if you wind up stuck with a higher rate then it doesn't work out so much in your favor. 

[cashorcharge]

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@4sallypat wrote:

---

@sccredit wrote:

While they are removing a minimum FICO score they still have their own algorithm to approve/deny/price loans

---

Yes but how much more interest is charged to a sub prime customer ???

I'd like to know if Ford using it's new credit algorithm will affect those with good credit ?

I am on a reservation list for the new Ford Lightning EV truck and wondering which finance method to use:

• Ford Option (hybrid finance/lease)
• Ford Red Carpet lease
• Ford Select financing
• Ford traditional financing - 72 or 84 months ?

The only reason I may go as high as 72 or 84 months is that the most expensive parts: BEV battery & motors are warranted for 8 years....

---

Personally, I would be worried about signing a 72 or 84 month contract on a vehicle that is brand new to the market with new tech and powertrain. Typically, the 1st iteration isn't perfect. Lease the new Lighting this time around and then buy Version 2.0 once the bugs are worked out. 

[Anonymous]

I only use dealer financing to get whatever discounts and rebates that are offered.  Sign the docs and next week go to my credit union.  My last F150 was FMC at 7.99%, but had $12,000 rebates and discounts including 3k if using FMC.  Take the money and run.  The next week, PENFED gave me 3.99.  It was a 72 month loan though.