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In 2005 I purchased a Jeep Wrangler and financed it through the dealer. Years later when my income had increased I went to pay it off early and found that the contract stated all interest had to be paid in full for the full contract of the loan.

I just recently purchased a 2013 F150 Ecoboost and dug deep into the details about financing with Ford. Turns out they have a simple interest loan which works best for consumers. The interest is accumulated daily on the loan amount. Payments made to the account first pay for any accumulated interest then the rest goes to the principal.

Here is the PDF I found from their website after digging pretty hard.

https://credit.ford.com/fg/coverflowImages/simpleInterestFC-17077.pdf

I don't know why non of the deals I talked to had any information on this or proof to back it. They all said "Trust me!" which we all know is the last thing we should be doing.

Happy Shopping!
 

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Yep. Pay them their money sooner, pay less interest.

I agree it should be right there simply stated in the financing contract though.
 

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Wow. That Jeep loan was ridiculous. Even a loan shark stops the interest when you pay them back.

Sent from my SGH-I747M using Tapatalk 2
 

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I had planned to pay cash for the new truck in March, 2013. I had saved up for 12 years since the last time I bought a new truck ('01 5.4L F150 XLT Supercrew, 240,000 miles, great truck). I prefer to make the monthly payments to myself before I buy the vehicle. I negotiated a price that was $10,250 off the MSRP. I was satisfied with that and ready to buy. When I sat down to write the check, I was then told that the price was only applicable if I financed it through Ford Credit. The "cash price" would be $1,500 more. I was not happy to hear that at that late stage of the deal. The finance manager at the dealership told me I had to finance it for at least 4 months to get the $1,500 purchase price discount. I asked him how I could minimize the cost and he told me. I appreciated that. When the first payment coupon arrived, I paid $20K. Then I paid the coupon amount for the next two payments. Then I paid the loan balance on the fourth payment.
 

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Ran into the same issue on cash vs finance the truck this past spring. Only difference is when the first payment came due I paid the truck off 100%. No penalty and no interest due! Received my ford credit letter thanking me for paying off my loan and my title showed up 2 weeks later.
 

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I purchased through Ford at 5.99% just to get an extra 1K off. Waiting for title to process the refinance through local credit union for 1.75%.
 

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I had planned to pay cash for the new truck in March, 2013. I had saved up for 12 years since the last time I bought a new truck ('01 5.4L F150 XLT Supercrew, 240,000 miles, great truck). I prefer to make the monthly payments to myself before I buy the vehicle. I negotiated a price that was $10,250 off the MSRP. I was satisfied with that and ready to buy. When I sat down to write the check, I was then told that the price was only applicable if I financed it through Ford Credit. The "cash price" would be $1,500 more. I was not happy to hear that at that late stage of the deal. The finance manager at the dealership told me I had to finance it for at least 4 months to get the $1,500 purchase price discount. I asked him how I could minimize the cost and he told me. I appreciated that. When the first payment coupon arrived, I paid $20K. Then I paid the coupon amount for the next two payments. Then I paid the loan balance on the fourth payment.
Sometimes what the finance manager tells you isn't true either. I went to a Lincoln dealer to buy my wife a Grand Marquis that she wanted. I called Ford directly and asked them what finance deals they had. They had several different rates and I asked the lady which rate I would get and she said that was strictly up to the dealer. I don't remember the exact interest rate, but lets just say the best one was 1.5%. I went to the dealership and made the deal and went to the finance managers office. I told him I wanted the 1.5% deal and he said no problem, he could get that for me at a local bank. I told him I didn't want it from the bank, I wanted to go through Ford Credit. He got mad and said that Ford wouldn't approve me for 1.5%. I told him I had talked to Ford and they said it wasn't up to them, it was up to the dealer. He said are you calling me a liar? I told him all I was doing was telling him what Ford said. He then said in a very loud voice "It says right here on my screen that you do not qualify, do you want to see it?!" I told him that I did and he spun the screen around. I said where does it say it and he got up and stormed out of his own office. I went outside and told the worker to move my wife's stuff back to our car, the deal was off. A lady came up to me and said she was the General Manager and asked me what the problem was. I told her and she asked me to wait a minute. Then she asked me to go back to the Finance Managers office and we would do the deal with Ford Financing. When I got in his office, I couldn't help but ask him how I was getting this deal if Ford wouldn't approve me. In a very angry tone he said "I'll shove it down their throats and make them take it!". The only thing I can figure is he was getting a kick-back from the local bank and that is why he was trying to force me to use them.

Any time it comes down to the last minute and they throw me a curve, I call their bluff. They aren't going to invest their time and energy and know you are going to buy, and then let you walk out without getting any of your money.

At least that has always been my experience. Sorry for the long post.
 

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The finance manager at the dealership told me I had to finance it for at least 4 months to get the $1,500 purchase price discount.
The reason the Finance Manager said that is if you refinance or otherwise payoff the loan before three payments are made the selling dealership gets a "charge back" Fee from Ford Credit.
 

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I had planned to pay cash for the new truck in March, 2013. I had saved up for 12 years since the last time I bought a new truck ('01 5.4L F150 XLT Supercrew, 240,000 miles, great truck). I prefer to make the monthly payments to myself before I buy the vehicle. I negotiated a price that was $10,250 off the MSRP. I was satisfied with that and ready to buy. When I sat down to write the check, I was then told that the price was only applicable if I financed it through Ford Credit. The "cash price" would be $1,500 more. I was not happy to hear that at that late stage of the deal. The finance manager at the dealership told me I had to finance it for at least 4 months to get the $1,500 purchase price discount. I asked him how I could minimize the cost and he told me. I appreciated that. When the first payment coupon arrived, I paid $20K. Then I paid the coupon amount for the next two payments. Then I paid the loan balance on the fourth payment.
Yep, same here. And don't think you will save any money by not trading in an old vehicle, you loose your $750 Ford Trade-in Assistance rebate. These bastards are terrible. And the dealer will tell you that you have to wait three months before paying off the loan. They tell you this as if you look at a loan amortization table the beginning of a loan is where all your interest is. Don't believe the dealer. Best way to buy a vehicle is remove all the variable and give them a defined set of requirements so you don’t get sucked in when the try to play their trick math games. I tell them once they start playing I get up and walk out, I have many times.
 

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Yep, same here. And don't think you will save any money by not trading in an old vehicle, you loose your $750 Ford Trade-in Assistance rebate. These bastards are terrible. And the dealer will tell you that you have to wait three months before paying off the loan. They tell you this as if you look at a loan amortization table the beginning of a loan is where all your interest is. Don't believe the dealer. Best way to buy a vehicle is remove all the variable and give them a defined set of requirements so you don’t get sucked in when the try to play their trick math games. I tell them once they start playing I get up and walk out, I have many times.
I did most of my searching and gathering of out the door prices on line. Now a day you do not even have to walk into a dealership to get quoted a price, when I found the best deal I went in and finalized it.
What ticked me off is all the salesman talked about was the Ford survey and how he wanted to see all excellent ratings because it is a reflection on him and the dealership.
I sent him and e-mail asking what he did to deserve it. My wife and I test drove the truck at another dealership, all he had to do was show me the truck I was getting and fill out the paperwork. I informed him that all he did was his job, he didn't go above and beyond on anything. the price they post is their lowest price so there was no haggling.
Funny, I got the Ford survey on line and just deleted it.
 
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