FORD FINANCE

How to Get Ford Finance on a Ford Explorer

With a Ford Explorer costing as much as $55,000, the need to both arrange finance and get the best possible finance deal both in terms of the final sale price of the car, as well as the best interest rate and credit arrangement, becomes true for virtually everyone.

The cost of the Explorer is not unique to Ford, already good SUV’s do come at a premium. What matters more to a customer is that they spend time and energy doing the research before they buy, both in terms of what they can expect to pay in terms of price, and what they need to do to make sure they secure the best possible finance deal.

In terms of price, customers can take this pretty much as far as they want. There is a standard retail price often known as the MSRP, which is often referred to simply as the sale price. This is in effect the list price manufacturers put on their  cars. In reality, everyone will expect a dealer to lock a significant percentage of this price, normally somewhere in the region of 10 to 15%.

Ford Finance on a Ford Explorer

Other people will go much further and take through various websites to actually get to what the dealer pays manufacturer for the specific car, and then decide how much they are willing to go on top of that in terms of paying the dealership.

Whichever way you go, bear in mind that the final sale price includes a number of potential optional extras, and care needs to be taken that these are actually wanted and needed an specified in the price. Anything you don’t want the clear about not including.

Keeping the sale price is separate from the negotiations about the finance rates is really important. If the customer is arranging finance through Ford credit, a process known as dealership financing, then back in mind that the dealer will be able to negotiate on all areas of the finance package, including the size of the deposit, the interest rate and any other conditions attached to the quotation.

Whilst they are able to negotiate, the dealerships room for negotiation may be a bit limited, and will to an extent be dependent upon the credit score of the individual applying for finance on the  Ford Explorer and any cosigner who might be part of the original  application.

How to Get Best Ford Credit Finance Deals

Ford Credit will offer a wide range of finance deals, and making sense of them can sometimes seem a bit difficult. Whilst the offers themselves are perfectly genuine, the range of different offers and discounts available can sometimes make it a bit tricky to work out exactly what the benefits are, and who is getting them.

Ford, along with other manufacturers, offer a range of discounts on selected models, at certain times of the year, to certain groups of people such as people who are serving or have served in the military, to pre-approved customers and certain finance deals normally a low or zero interest-rate.

Ford will also sometimes offer a special relationship with one or more insurance companies who may be able to offer advantageous rates on any model that is bought or leased.

Making sense of these different offers can sometimes take time, but that can be to the advantage of the customer they are willing to put the legwork in. Firstly is to look at the deals that Ford offer at a national level. These will be honoured by all Ford dealerships, in addition to any local finance deals that may be available.

Best Ford Credit Finance Deals

Secondly is too relies a lot of the Ford credit finance deals will be aimed at vehicles that need shifting in terms of inventory. That means that if a customer is willing to bide their time, and buy at a certain time of year they are in a position where they could get significant savings.

Getting pre-approval as a customer is also a really good idea. It allows the customer to obtain in advance an agreement in principle to borrow a certain amount of money. This means they know what they are able to borrow and what it is likely to cost them. This means that they can focus much more clearly on what model and year of car they want to buy.

The other area of Ford credit finance deals tends to relate to either low or zero interest-rate offers. These are normally aimed at customers with a very high credit rating, and quite often customers who have been preapproved as well.

Whilst all these offers can work well, it is worth remembering that a discount is only as good as the price that is being discounted in the first place. Make sure that any offers that are applied in the take effect after a significant negotiation has happened between you and the dealership with regard to the price of the vehicle and any additional extras that you may be  buying.

What is a Ford Finance Interest Rate?

Ford Finance is a type of auto lending loan that is commonly referred to as dealership financing,  whereby Ford offer auto loans to potential customers who qualify enabling them to buy their cars and trucks directly alongside arranging the finance at the same time.

These are known as secured loans, because they are in effect lead against the title of the vehicle itself, meaning that in the event of any problems repaying the loan  when Ford can repossess the vehicle and get some of that money back.

The reason this is important is that a secured loan normally has a lower rate of interest than an unsecured loan.

Ford Credit is the finance arm of Ford, and is designed to help customers arrange finance or credit when wanting to buy or lease a vehicle. It should not be thought however that potential customers are given preferential treatment simply because they are looking to buy a Ford vehicle.

From Ford’s point of view, each customer’s assessed as a credit risk and a different made accordingly as to whether or not to lend the money or not, and if so on what terms and conditions.

Ford Finance Interest Rate

A Ford finance interest rate is the rate of interest that is charged to the customer on their auto loan or the period of the loan agreement.

Once an application for credit has been approved and agreed, the customer and Ford entered into a contract where the customer always the money as a secured loan for a fixed period of time.

An interest rate will be charged on the amount of money lent for the entire period of the loan and a monthly repayment costs will be worked out.

It is worth remembering that with a secured line the monthly repayment cost will be fixed at the same amount for the period of the loan, as this simplifies the process. However the interest rate is charged on the amount outstanding of the loan agreement as it slowly reduces overtime.

The reason this is important is that if the customer decides to pay off the loan early bird is likely to be a penalty charge which can be quite significant. This should be spelt out in the loan agreement.

Additionally, it can be well worth looking at refinancing any type of credit agreement pretty much at any point. This can sometimes have significant benefits for the customer can often result in a lower rate of interest for the period of the loan.

With most secured loans, the bulk of the money paid in the early months possibly years tends to be interest, so it is worth considering the option of refinancing if the customers circumstances or credit score changes significantly in that time.

How do I get Ford 0 Financing?

Ford 0 financing is one of many incentives that full operate as a way of inducing customers to buy or lease a new or used Ford vehicle. It may be used either as a national approach to sales or by selected local dealers.

It may also be offered at certain times of the year such as Christmas or Black Friday, or on certain models. It may also be offered as a way of trying to get customers to be pre-approved for credit by the Ford website, and may be offered on certain selected pre-approved models. The one thing that most of the ads offering the inducement won’t mention is that it will only be offered to customers with an exceptionally high or good credit score.

All inducements including Ford 0 financing are certainly well worth exploring, and may well end up saving you money if you qualify and can take advantage of them. However it is always well worth being aware that any offer or inducement is only as good in terms of finance as the final sale price of the vehicle.

Whilst Ford 0 Fnancing might be offered to someone and can make a sale look more attractive, if the dealer refuses to certification on price than the buyer could end up in a worse financial position because they are actually paying more for the car even with a low or zero interest rate.

Ford 0 Financing

Rather than simply going by one particular inducement or offer,  it is a good idea to look at the total cost of financing the vehicle, and look at the various component parts that make up the overall cost. Some people will go by simply how much they would pay on a monthly basis, and other people will go by the total overall cost of the sale or lease agreement.

For some people, simply going by how much you pay or repay of a monthly basis makes sense as it allows them to fit the payments into the context of their normal budget. The only danger with this approach is that you lose sight of the overall cost of the loan.

If the overall cost turns out to be significantly more than the worth of the vehicle, allowing for appreciation of the car or truck  over time, then the car goes into negative equity which could potentially be a problem for the owner.

Whilst Ford 0 financing can certainly be a very attractive offer, any potential customer should always remember that many other components of the financing such as monthly repayments and length of term of the loan, as well has many areas of the sale itself that can be negotiated an end up reducing costs. These areas can relate not only to the list price of the vehicle but also to numerous vehicle protection plans relating to the servicing and maintenance that can affect the long-term running of the vehicle.