When someone is looking to buy a new or used Ford car, there is often an assumption that it is easier to arrange the finance with Ford at the same time through the credit division, Ford credit.
The convenience factor can often be a big part of the sales process, and in reality can often make things see much easier. People also assume that if they are buying the car and arranging finance at the same time they are likely to get a better credit deal to do by virtue of that, that they are likely to get a better interest rate because they are doing the financing through Ford.
In reality this is to simply not true. Ford Credit acts as any other lender would do, such as a bank or a credit union, and lends money only to people who it believes are credit worthy, and who they believe can repay the loan in good-faith.
As such the interest rates they charge to their customers are likely to be in accord with what other lenders will charge, given the proviso that it is an open market and any lender can in theory charge whatever they like.
Ford Credit Interest Rates
Anyone looking to borrow money for an auto loan would do well to consider all the aspects of the purchase as well as the various differing factors that make up the auto loan itself. Budgeting for you can afford to borrow is a crucial first step in the process.
Some people look at how much they can afford to borrow overall, other people look at what they can afford to repay on a monthly basis. Ford credit interest rates will reflect a number of factors in terms of the make up of an auto loan, but will ultimately be based upon the credit score of the individual applying for the loan.
This credit score will determine Fords attitude to lending, in terms of the size of the down payment card, the length of time of the loan and the interest rate charged during that period.
In addition, anyone borrowing money from Ford credit would do well to look at the overall package of costs involved in buying the vehicle. This can include much of a discount they believe they can negotiate on the list price, what the charges are likely to be in terms of sales taxes, fees, documentation fees, insurance costs, servicing and maintenance costs, roadside assistance etc.
These costs can mount up considerably and should be considered when negotiating how much money needs to be borrowed from Ford credit. These additional costs can also often be the basis for a negotiation which can reduce the overall cost involved, and make the issue of an interest rate perhaps less important if the overall amount being borrowed has been reduced significantly.
