Ford Credit

jason_85 · 30-11-2007, 10:58 PM

Hey guys.

Looking at buying a new car and wondering if anyone knew what Ford credits interest rates were like before i go in tomorrow and they spin me a yarn and never answer my question!

Thanks for any help!

phoenix99 · 30-11-2007, 11:25 PM

I got my car at the start of the year and the annual percentage rate was 12.5% .

Powdered Toast Man · 30-11-2007, 11:48 PM

Second hand BA a year ago at 12%. They're good with their payment plan too. I pay off mine quicker than necessary and at the moment my next compulsory payment isn't due until May 2009 lol.

sfr rob · 01-12-2007, 07:49 AM

WHOA! 12 % you guys are NUTS!

Disciple · 01-12-2007, 08:16 AM

Capital Finance will be around 9.75-10.5% over 5 years.

alpineau · 01-12-2007, 08:28 AM

Dam I got Secured Finance on my Liberty through esanda and it's 9.75%

Disciple · 01-12-2007, 08:34 AM

Quote:

Originally Posted by alpineau

Dam I got Secured Finance on my Liberty through esanda and it's 9.75%

Yeah but it's secured. meaning the loan is secured against another asset you own so the interest rate will be lower. Also, how long ago did you get the loan? Remember interest rates have gone up a lot lately.

_

HOON69 · 01-12-2007, 08:39 AM

ford credit are a joke the crap my brother inlaw goes though with them over his AU-SR-WAGON is pathetic.
12% thats the same as most cars yards these days 12-16%

RG · 01-12-2007, 08:49 AM

12% on a new car, bugger me. Westpac offered me 8.75% on a new car and 9.25% on a second hand one and this was only a couple of weeks ago.

EFDream · 01-12-2007, 08:52 AM

Yeah I went ford credit on my old escape and it was 12.5.....it was only later that I found out how much I was getting ripped off....

GT-E · 01-12-2007, 09:16 AM

I got my F6 for 7.95% in Feb06 and just bought a Hyundai Getz for 8.5% last month

davocol · 01-12-2007, 09:40 AM

Ford Credit are normally higher on interest rates as they cant source money as cheap as banks due to having a shocking credit rating because of their parent company

, look past rates though and simply look at the total you will pay over the lease. Most of them end up pretty close due to other fees and charges the banks sneak in.

RACV finance are good and offer good rates on new cars as do HSBC.

Mercury 8 · 01-12-2007, 09:42 AM

Tell them what interest rate you are after.Don't just take what they offer you.You may be surprised if you take the hard line.

jason_85 · 01-12-2007, 09:48 AM

Quote:

Originally Posted by Disciple

Yeah but it's secured. meaning the loan is secured against another asset you own so the interest rate will be lower. Also, how long ago did you get the loan? Remember interest rates have gone up a lot lately.

_

you can use the car you buy as security though right?

Disciple · 01-12-2007, 10:06 AM

Quote:

Originally Posted by jason_85

you can use the car you buy as security though right?

Well yeah I spose you can, but it's not so smart to do if you can help it. It basically just means that if you can't fund the loan, in some cases the bank will sell whatever the loan is secured against to recoup their money. The car you're buying, particularly if new, won't be worth what you're borrowing for it anyway. :togo:

Basically what I'm saying is, if you can afford to get a loan for a car without securing it against anything, then you're better off. Going further with that still, if you can afford to buy the car outright with cash, that's even better, OR, at least pay for a large portion of the car with cash and only get a loan for the amount you really need to. It's common sense really to pay back as little interest as possible.

Auslandau · 01-12-2007, 10:06 AM

Quote:

Originally Posted by davocol

Ford Credit are normally higher on interest rates as they cant source money as cheap as banks due to having a shocking credit rating because of their parent company

, look past rates though and simply look at the total you will pay over the lease. Most of them end up pretty close due to other fees and charges the banks sneak in.

RACV finance are good and offer good rates on new cars as do HSBC.

Ford Credit are an underwritten company and are not linked to FORD as such so doesnt have anything to do with credit rating.

I wouldnt go over 9%. Way to many companies offering under this at the moment. Talk to the dealer and usually they have good offers to sell there cars. Mine are well below 9% through a normal dealer. (One is through Ford Credit as well) I dont even bother to find out the name of the company, as long as the repayments and terms, fees and rates are what I want.

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fordel · 01-12-2007, 10:06 AM

I used ford credit for my old EL, they were pretty good

Current car i didn't use them, 8.25% secured for 5 years, not a bad loan at all.

SNB05T · 01-12-2007, 10:55 AM

yeah 12% is bout right. the same my brother is on for his 04 xr8 he bought through kelly holden in newcastle. he paid $27 000 for the car but with interest over 5 years he's paying nearly $40 000

:

think he got rorted big time eh

davocol · 01-12-2007, 10:55 AM

I disagree, when I was there all of FCALs borrowing were sourced directly or indirectly via the motor company, unless this has changed whatever happened to FORD US and FORD AUS financially directly affected the interest rates Ford Credit Australia could offer to it's customers. Ford Credit in the states may offer a different structure? Ford Credit aus up until about 2003 did not. That is one of the reasons they bought in fees rather than concentrate on interest rates, this happened in around 2002.

They were even encouraging staff to invest money into the company at a fairly genenorous interest rate which could then be on lended to individuals or invested in something else.

Quote:

Originally Posted by auslandau

Ford Credit are an underwritten company and are not linked to FORD as such so doesnt have anything to do with credit rating.

I wouldnt go over 9%. Way to many companies offering under this at the moment. Talk to the dealer and usually they have good offers to sell there cars. Mine are well below 9% through a normal dealer. (One is through Ford Credit as well) I dont even bother to find out the name of the company, as long as the repayments and terms, fees and rates are what I want.

thexyking · 01-12-2007, 11:04 AM

I'm in the property finance game. make sure your comparison is based on three things:

1. Your up front fees (even if they are included in the loan;
2. Your payment each molnth, and
3. Any balloon or residual you have at the end.

Interest rates can be misleading when you have other fees taken into account, compare the total amount you pay over the term and use that as the base for your comparison.

If you are using a property to secure the loan, only in exceptional circumstances (poor credit history, income that you cannot demonstrate) should you be paying over 8%.

ltd · 01-12-2007, 11:07 AM

Geez, I got a BF fairlane off Jubilee Ford and the interest rate they charged me was 8.25%. That was a year ago.

Powdered Toast Man · 01-12-2007, 06:28 PM

Mine was second hand at 12% as I posted above. Their new car rates may be lower.

I was going to buy another second hand car recently and was going to get a loan off RACV since they are advertising 9% interest. Found out it's only on new cars and the best they could do was 12.5% on a 20 grand loan for a second hand.

I'm not defending Ford Credit, I have no affiliation so no reason, but double check whether you are comparing apples with apples when comparing interest rates. I'm new to car loans and I definitely didn't realise that interest rates were different for new vs second hand. I thought it was only based on the amount borrowed.

T_Terror · 02-12-2007, 01:02 AM

Ford Credit are one of the worst options for financing a car IMO.

I went with them as a quick option to pick up a work vehicle, and my god was the deal a shocker.

No early payout option, the interest was a few points higher than average and the customer service was nothing flash.

Go with a bank or a credit union.

jason_85 · 02-12-2007, 04:21 PM

Quote:

Originally Posted by Disciple

Well yeah I spose you can, but it's not so smart to do if you can help it. It basically just means that if you can't fund the loan, in some cases the bank will sell whatever the loan is secured against to recoup their money. The car you're buying, particularly if new, won't be worth what you're borrowing for it anyway. :togo:

Basically what I'm saying is, if you can afford to get a loan for a car without securing it against anything, then you're better off. Going further with that still, if you can afford to buy the car outright with cash, that's even better, OR, at least pay for a large portion of the car with cash and only get a loan for the amount you really need to. It's common sense really to pay back as little interest as possible.

agree but. if you cant afford the repayments obviously you wouldnt be able to run and maintain the thing.

I wil have no problem making the repayments and will have some sort of deposit. Its just logical to search for the cheapest borrowing option.

RapidBF · 02-12-2007, 05:12 PM

I have dealt with Ford Credit a couple of times, and while it wasn't the cheapest rate out there it was still only around 9% - that was a couple of years ago now, but if you do go through them and need a favour with something else later on you're laughing, they were so good to deal with.

As far as cheap rates go, I could go past Westpac and use the ute as security. They were the best around, but I think you already need to be an exsisting customer with them to get the really good deals.

Lukeyson · 02-12-2007, 06:15 PM

i have been through Ford Credit twice now, no problems with them, their interest rate is a tad high and other fees.
I was in between jobs at the time of the 2nd loan with them, and i got finance through them no problem for my ute due to good repayment history with them, or some crap. But i paid it out after a year, and i think it cost me $700 payout fee :(

XR06T · 03-12-2007, 01:04 PM

they gave me 16.5% on the turbs in 05, couldn't believe it.

go to a broker mate, i ended up with capital finance on around 10%

i think that just about all car loans have the car as security.

Bucket · 03-12-2007, 01:10 PM

I'm at about 9% on the Focus and thats through Ford Credit...
He initially offered me a rate of 15% on the phone....I literally burst out laughing on the phone and told him to jump.
He came back with 12% , I laughed some more....told him My friends over at New England CU could do 8.45% and and left it at that. He came back with 9 and I was happy.

dave289 · 03-12-2007, 01:56 PM

i think 12% in interest is to much to pay these days but would have looked like a bargain when i started working for ford in 1989 instaling ford credit programs on to salesmans pc's.the interset rate then was about 24% on car loans through them.

you just need to look around and get some quotes.today you should not pay over 10% for a second hand car and less on a new car .can anybody really tell me why we pay more interest on a secondhand car loan as opposed to a new car loan.i could be bying a brand new hyundai getts for 13999 brand new or 49999 for my second hand boxster.the bottom line is i am borrowing money to pay back, so why is it that we pay more interest on the second hand car loan.

GT0336 · 06-12-2007, 06:12 PM

Ive been with ford credit for a while, I dont mind them, got my current BA XR8 for 10%. Tried a few others before I bought the car, no one else would do it for under 12.5%.