Current Interest Ford Interest Rates?

[LOTO1953]

When she told me that rate for an 800 score I didn’t believe anything else she said.

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[Interstellar]

When she told me that rate for an 800 score I didn’t believe anything else she said.

You haven't been paying attention to federal rates or auto rates for at least a year if you really feel this way.
6% is probably the lowest publicly available interest rate. By a bank or credit union. Incentivized rates only recently came out. For those of us who bought last year, 6.9% is/was pretty much the norm.

The fed interest rate is between 5.25% and 5.5%. That means anyone offering rates below that are losing on money compared to bonds with the feds.

 

[roadpilot]

you have to be below 600 to get raped like that.

Not at all. Rates are astronomical across all credit risk tiers. The only way you get a better rate is, for example, Ford runs a special financing offer, such as 0% or 1.9% for specific models they are trying to get rid of. Right now, they are offering 1.9% to 5.9% for certain Mustangs.

Keep in mind that, if you're getting quote through the dealership (Ford Credit or otherwise), they have the ability to charge a customer MORE than what the lender quoted, pocketing the difference. This is a greedy dealership, not necessarily a bad credit risk.

Over the past ~20 years, my credit union has consistently beat EVERYBODY we've looked into, including Ford Credit. I've bought over a dozen vehicles, purchasing more than I've leased. In the spring of 2021, I purchased a new 2021 F150 Platinum. My rate was/is 1.89% for 72 months from our CU. I/we have absolutely top tier credit (mid 800's at EFX/TU/EXP).

Here are the current top tier rates at our CU right now.

 

[area5179]

You haven't been paying to federal rates or auto rates for at least a year if you really feel this way.
6% is probably the lowest publicly available interest rate. By a bank or credit union. Incentivized rates only recently came out. For those of us who bought last year, 6.9% is/was pretty much the norm.

The fed interest rate is between 5.25% and 5.5%. That means anyone offering rates below that are losing on money compared to bonds with the feds.

This is true. My credit union is only .15% less than Ford's current rate for the same loan terms. It's a far cry from when I bought my first mustang in 2005 and financed with my credit union for HALF of what I was offered at the dealership, even for a first time buyer.

 

[roadpilot]

The fed interest rate is between 5.25% and 5.5%. That means anyone offering rates below that are losing on money compared to bonds with the feds.

Only if that lender has to borrow money in order to fund your loan. If the have enough cash reserves to fund your loan, then they aren't losing money on your loan beause they don't have to borrow money to fund it -- but they know they can get away with raising the rate to make more on it.

 

[roadpilot]

This is true. My credit union is only .15% less than Ford's current rate for the same loan terms. It's a far cry from when I bought my first mustang in 2005 and financed with my credit union for HALF of what I was offered at the dealership, even for a first time buyer.

Like I said just a few posts above, when I bought my F150 back in 2021, I got 1.89% for 72 months. That's almost like borrowing money for free. I will not be trading that truck in any time soon, likely keeping it another ~3 years and paying it off.

 

[Interstellar]

Only if that lender has to borrow money in order to fund your loan. If the have enough cash reserves to fund your loan, then they aren't losing money on your loan beause they don't have to borrow money to fund it -- but they know they can get away with raising the rate to make more on it.

You're not borrowing money from the feds, you're giving them money for a guaranteed 5.25-5.5%.
The opportunity cost is certainly not in their favor when giving out loans at 3.9% with the additional risk of people not paying, crashing the car, etc.

 

[roadpilot]

You're not borrowing money from the feds, you're giving them money for a guaranteed 5.25-5.5%.
The opportunity cost is certainly not in their favor when giving out loans at 3.9% with the additional risk of people not paying, crashing the car, etc.

We're not talking about lost opportunity cost. We're talking about a lender lending you money to buy a car and where they got that money from (borrowed it from another bank or had cash reserves).

 

[Interstellar]

We're not talking about a lender investing money instead of loaning it out. We're talking about a lender lending you money to buy a car.

So this is why you won't see any rates below 5.5%

 

[roadpilot]

So this is why you won't see any rates below 5.5%

Wrong.

Ford Credit is offering a bunch of financing at anywhere from 0% for 72 months (IIRC, I saw several models offering this in the past few days of browsing Ford dealer sites) and up. Here's the current program for the 24 Mustang:

Program #20068 - Effective 1/3/24 through 4/2/24 on select vehicles, including select Mustangs
1.9% for 36 months
2.9% for 48 months
3.9% for 60 months
5.9% for 72 months

 

[Interstellar]

We're not talking about lost opportunity cost. We're talking about a lender lending you money to buy a car and where they got that money from (borrowed it from another bank or had cash reserves).

Wrong.

Ford Credit is offering a bunch of financing at anywhere from 0% for 72 months (F150s) and up. Here's the current program for the 24 Mustang:

Program #20068 - Effective 1/3/24 through 4/2/24 on select vehicles, including select Mustangs
1.9% for 36 months
2.9% for 48 months
3.9% for 60 months
5.9% for 72 months

Alright I'm done trying to explain it. You even said "Lenders" in your first post.
Incentivized rates are completely different.......from the views of Ford they can either give cash incentives or incentivized rates or a combo of the 2 to move inventory. Again though, they are LOSING money compared to buying treasury bonds though

 

[roadpilot]

Alright I'm done trying to explain it. You even said "Lenders" in your first post.

Ford Credit is a lender.

I don't need you to explain anything. Again, I'm NOT referring to lost opportunity cost.

 

[LOTO1953]

You haven't been paying attention to federal rates or auto rates for at least a year if you really feel this way.
6% is probably the lowest publicly available interest rate. By a bank or credit union. Incentivized rates only recently came out. For those of us who bought last year, 6.9% is/was pretty much the norm.

The fed interest rate is between 5.25% and 5.5%. That means anyone offering rates below that are losing on money compared to bonds with the feds.

Been paying very close attention to rates almost daily for the last 25 years so I will rephrase...she said 6.9 for a credit score of 800 and I knew she was lying OR the customer was a fool for using her lender.

 

[Interstellar]

Been paying very close attention to rates almost daily for the last 25 years so I will rephrase...she said 6.9 for a credit score of 800 and I knew she was lying OR the customer was a fool for using her lender.

what bank do you use. Willing to bet their rate is the same if not worse

 

[LOTO1953]

what bank do you use. Willing to bet their rate is the same if not worse

Lets put some money on this then….say $1,000.00 I can beat 6.9?

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