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Ford Focus Purchasing Center (Ask A Ford Salesperson) Discuss about special incentives and ordering information on the Focus & Focus ST.
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Old 06-12-2013, 04:15 PM   #1
Chambo
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How does the 0% financing work?

I see Ford is offering 0% financing. Is it really zero? Or is it compounded some ridiculous way that allows them to advertise it as 0%? Any insights would be greatly appreciated.


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Old 06-12-2013, 05:03 PM   #2
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You finance x amount over x amount of years for 0% interest.
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Old 06-12-2013, 05:57 PM   #3
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Normally 0% interests loans require shorter terms and higher monthly payments. If you can afford it then its the best way to borrow.
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Old 06-12-2013, 08:04 PM   #4
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It's almost always a better deal to get a loan at you bank or credit union at a v. low rate and take the max rebate. Do the math. Zero percent doesn't mean the total amount paid will be less. They get their money by charging you more for the car.

Example. I bought mine with a 3 year loan at 1.49% and took the $3250 in rebates rather than $1000 back I believe and 0%. Finally, it goes against my rule of never financing at the dealer...just another way the deal can get way more complicated than it needs to be.
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Old 06-12-2013, 08:26 PM   #5
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Also If you chose 0% thru ford you DO NOT get any incentives towards the car. If you do the math 0% vs incentives, it almost ends up being a wash.
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Old 06-12-2013, 08:44 PM   #6
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It's usually a better deal to go incentives if you have access to a good loan. Total interest paid over my 3 year loan will be ~$350. Whoopedeedoo. This vs. an additional $2750 in incentives...hardly a wash. Plus, when you aren't financing at the dealer I would bet you can negotiate a better price anyway.
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Old 06-12-2013, 09:22 PM   #7
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With the current low interest rates.. the 0% is generally not the best deal if there are $$$ incentives.
Though you are free to deal to get the lowest price and still take the 0%.

As others mentioned, you have to figure out what the interest would be over the life of your loan at say 3.9% or 2.9% and then compare that against the incentive.

Like when I bought my car there were no incentives except $500 cash If I took Ford Credit for loan.
With the interest on the loan it came out to the same as 0% for the life of my loan.
I was happy, Ford was happy.
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Old 06-12-2013, 11:58 PM   #8
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Quote:
Originally Posted by Tigeo View Post
It's usually a better deal to go incentives if you have access to a good loan. Total interest paid over my 3 year loan will be ~$350. Whoopedeedoo. This vs. an additional $2750 in incentives...hardly a wash. Plus, when you aren't financing at the dealer I would bet you can negotiate a better price anyway.
No.

You calculate the rebates/incentives and % interest offered and see the final payoff for the loan at the day it ends.

You calculate the lack of incentives and the 0% interest and see your final payoff.

You then go with what is the best overall deal that you pay the less final amount towards the vehicle.

The bank can get you a better deal? Um, no. The dealer has a price. THEY negotiate with YOU, not the bank. The bank has no say in anything, at all. If the dealer wants $30k for the car and bank will give you a $27k loan, you either come up with the difference, talk the dealer down yourself, or you don't get the car. Simple as that. It's not confusing at all.
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Old 06-13-2013, 04:50 AM   #9
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Quote:
Originally Posted by starfuryt550 View Post
No.

You calculate the rebates/incentives and % interest offered and see the final payoff for the loan at the day it ends.

You calculate the lack of incentives and the 0% interest and see your final payoff.

You then go with what is the best overall deal that you pay the less final amount towards the vehicle.

The bank can get you a better deal? Um, no. The dealer has a price. THEY negotiate with YOU, not the bank. The bank has no say in anything, at all. If the dealer wants $30k for the car and bank will give you a $27k loan, you either come up with the difference, talk the dealer down yourself, or you don't get the car. Simple as that. It's not confusing at all.
I am pretty sure that is what I was saying...not sure where you are going with your last bit...I thought I was pretty clear. I understand that the dealer is making a deal with me, not my bank (duh). In my case, taking more incentive cash rather then saving a little interest was a better deal for me - sure, in the absence of any cash-back incentive, zero is better than 1.5%. I negotiate the best price on the car and then just finance through my own bank. When you go to negotiate a car deal, adding the element of financing is why lots of people get screwed in the process because the dealer then uses it as a negotiating tool - to the dealer, I am just paying cash (my bank's loan check + my downpayment check) and it makes the deal cleaner and easier to assure the very best price is reached. Do whatever you want and gets you the best deal, I am simply saying that zero percent isn't magic and doesn't necessarily mean you are getting the best deal. Shop around at other banks and see what the car loan rates are, see what the incentives are, and do the math before coming to that conclusion.
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Old 06-13-2013, 08:29 AM   #10
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I think I was understanding that the bank was going to help negotiate on your behalf to get a better deal. I apologize.
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