Wow that's only a month before we bought and Ford gave us 3.9% for 60 months.
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Anyone refinanced lately?
- Thread starter Amcole1984
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@Amcole1984 , something is off. Rates were crazy cheap in 2021. My Bronco is financed at 1.1% for 66 mos. That is as close to free money as it gets.
To your immediate need. Ford financing does not do rate reductions, which is basically when you ask the lender if your loan can be re-evaluated for a change in rate. No biggie, you can refinance anywhere else. Some lenders have different rates for used vs new auto, some do not. Assuming the location in your profile is your zip code, that would put in you outside of Fort Worth, TX. Check out RBFCU credit union. They use the same rate for used vs new. The thing you have going for you at this moment is you have already been making payments so you don't need a longer term loan. Shorter term typically = lower rate. I am going to make an assumption that you financed for 6-7 years (and you mentioned hitting the 3 year mark). That means you probably only need a 4 year loan. Rates for that term are going to be around 5.5-6%. Making some very basic assumptions on how much you still owe and remaining term, you are likely looking at saving about $500ish in remaining finance charges over the life of the loan. However, you can use an online loan calculator to crunch your actual numbers to see if the savings is worth it to you. Refinancing could also give you the ability to extend the loan term a bit if needed to reduce your monthly payment if that has been causing financial pressure.
To your immediate need. Ford financing does not do rate reductions, which is basically when you ask the lender if your loan can be re-evaluated for a change in rate. No biggie, you can refinance anywhere else. Some lenders have different rates for used vs new auto, some do not. Assuming the location in your profile is your zip code, that would put in you outside of Fort Worth, TX. Check out RBFCU credit union. They use the same rate for used vs new. The thing you have going for you at this moment is you have already been making payments so you don't need a longer term loan. Shorter term typically = lower rate. I am going to make an assumption that you financed for 6-7 years (and you mentioned hitting the 3 year mark). That means you probably only need a 4 year loan. Rates for that term are going to be around 5.5-6%. Making some very basic assumptions on how much you still owe and remaining term, you are likely looking at saving about $500ish in remaining finance charges over the life of the loan. However, you can use an online loan calculator to crunch your actual numbers to see if the savings is worth it to you. Refinancing could also give you the ability to extend the loan term a bit if needed to reduce your monthly payment if that has been causing financial pressure.
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My GM at work said the average is 700$. What. The. F$ck. That was last year I think.
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The last vehicle I financed was for 7 years at 0% from Nissan for a frontier truck for my son, back in 2021 when the rates fell through floor. I’m still paying on that free loan, ~$315 a month.
The 4 door I ordered in Feb ‘22 came in in Feb ‘23, I had been saving for years driving a beater charger I got new in ‘06. I financed through the finance manager’s office to get the guy some commission, but paid off first payment ($44k)
My two door I paid cash for in summer of ‘24 by trading in sports car, paid $17k out the door cash difference. I did finance through Ford to get an extra $1000 off, but paid off first payment.
As far as insurance goes, its rates are set by the state, and they are always asking the state to raise rates. But there’s a HUGE difference in pricing insurance if you look at your deductible. A $1000 or more deductible can help a lot.
I’m no money guru, but there’s ways to save. Some will disagree with this method, but I do single, no dependents on W-4, so the wife and I get hefty income tax refunds, so we’re able to save a ton of money in a short couple-three years.
The 4 door I ordered in Feb ‘22 came in in Feb ‘23, I had been saving for years driving a beater charger I got new in ‘06. I financed through the finance manager’s office to get the guy some commission, but paid off first payment ($44k)
My two door I paid cash for in summer of ‘24 by trading in sports car, paid $17k out the door cash difference. I did finance through Ford to get an extra $1000 off, but paid off first payment.
As far as insurance goes, its rates are set by the state, and they are always asking the state to raise rates. But there’s a HUGE difference in pricing insurance if you look at your deductible. A $1000 or more deductible can help a lot.
I’m no money guru, but there’s ways to save. Some will disagree with this method, but I do single, no dependents on W-4, so the wife and I get hefty income tax refunds, so we’re able to save a ton of money in a short couple-three years.
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its insane, but that's the world MOST people unfortunately live in.
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Insurance rates are not set by any state. The states approve rate filing for carriers...
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My bad, almost same thing, but not.
The payments you have been making is mostly interest.... you will be messing up... but what do I know..... have not financed a new car is 40 years... always pay cash...
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I know. I don't really want to refinance. We got hit with a large amount of income taxes owed this year, still not sure why (max deductions and no dependents) happened to everyone I work with this year. We somehow all got screwed. And I got hit at the same time with a $6k escrow shortage. Just trying to survive this year, ya know.
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- Wildtrak
I don’t finance depreciating assets, unless I benefit from it financially - e.g., 0% loan, cash back for financing…provided no pre-payment limitations, etc.
You don’t have to pay the escrow shortage in full. Choose the option where it is paid over the course of the year. There is no interest paid by n the shortage, so you can ease your financial burden now at no extra cost to you (though, of course, your house payments will be higher by about $500/month for the next year than they otherwise would have).
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Hell no! That's worse than paying it up front. I'd rather get it paid now. Dragging it out is crazy!
So you're going to refinance to pay them all of the money that is otherwise interest-free to pay?
In my mind, giving anyone else my money when I can make more by keeping it is worse. Thus, I have no problem with car loans and home loans, because I make more money keeping my money that paying for a car with cash, even factoring the interest paid on the loan. Also, paying $6,000 at once is far more disruptive to me than $500/month for one year. What happens if you have another cash emergency? Now, if I had ot pay a high interest rate, that would be a different story.
Example:
Financed a car at 1.9% interest and kept the cash invested, and before the loan was paid off, I had already earned enough money that I could have paid cash for the car. $35,000 initial cash + $35,000 earned - $36,700 principal and interest paid + $25K car residual value > $25K car residual value.
Finances are an individual decision, I get it. But if I have to work, then my money has to work just as hard.
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