Some advice for a first time financing?

[PandaBoi]

Hey y’all,

So my raptor is currently sitting on the infamous ramp 51 and supposedly is off microchip hold according to my zone rep but my dealers tracking system says it’s still on a microchip hold which is probably the case. Hopefully it will get here soon but eta is still 01/24/2022.

Anyway, since it might come soon I was hoping to receive some advice from anyone here on best practices, tips, and tricks when financing a vehicle. Until now I’ve always just paid in full for my vehicles so I’m very new to this. I think I’m planning on going with a credit union because my credit score is great (750+) and they seem to be one of the few that can offer rates as low as 1.75%. Im not sure what the best rates are from ford but I think they are around 3-5%.

I plan to purchase the Ford PPM service plan since I’ve heard from others it’s really worth it. I also may get an extended warranty but wanted y’all’s input as well. I know these two and GAAP insurance are sometimes required by credit unions so that’s a win win.

For me I plan to finance about $30k-$35k of the vehicles total cost. The rest would be paid for upfront (TX reg & tax, service plan, extended warranty, and the remaining cost on the vehicle). I am purchasing the vehicle out of state in Nebraska (I live in Dallas) so that may make financing a little more complicated.

Anyway, any help/advice is greatly appreciated. Looking super forward to getting the truck and hope it gets here soon! Best of luck to everyone else waiting too!

 

[GCATX]

Hey y’all,

So my raptor is currently sitting on the infamous ramp 51 and supposedly is off microchip hold according to my zone rep but my dealers tracking system says it’s still on a microchip hold which is probably the case. Hopefully it will get here soon but eta is still 01/24/2022.

Anyway, since it might come soon I was hoping to receive some advice from anyone here on best practices, tips, and tricks when financing a vehicle. Until now I’ve always just paid in full for my vehicles so I’m very new to this. I think I’m planning on going with a credit union because my credit score is great (750+) and they seem to be one of the few that can offer rates as low as 1.75%. Im not sure what the best rates are from ford but I think they are around 3-5%.

I plan to purchase the Ford PPM service plan since I’ve heard from others it’s really worth it. I also may get an extended warranty but wanted y’all’s input as well. I know these two and GAAP insurance are sometimes required by credit unions so that’s a win win.

For me I plan to finance about $30k-$35k of the vehicles total cost. The rest would be paid for upfront (TX reg & tax, service plan, extended warranty, and the remaining cost on the vehicle). I am purchasing the vehicle out of state in Nebraska (I live in Dallas) so that may make financing a little more complicated.

Anyway, any help/advice is greatly appreciated. Looking super forward to getting the truck and hope it gets here soon! Best of luck to everyone else waiting too!

I would finance as much as you can at the lowest rate you can find, keep the cash and buy guns an ammo with it. If we read the tea leaves falling out of Brandon's pant leg, your truck debt may be just a drop in the bucket compared to what that truck may be worth on paper in a year or two.

But, that's none of my business.

 

[LuckyKnuckle36]

IMO:
If you're financing $30K-$35K do not let them sell you GAAP insurance, there is no gap to cover. You have equity so in the event it gets totaled the insurance would pay you the difference in value and payoff. GAAP is for when you owe more on the loan than what the insurance company deems its totaled value at the time.

Get pre-approved by your credit union and use that rate to negotiate. Let's say your CU is offering 1.75% financing for 72 months, then tell the dealer if they can beat that you'll go with them otherwise just go with your CU. Out of state does make the transaction with your credit union a little harder but just go see them before you head out and line it all up before you go.

I am sure there are all kinds of varying opinions on extended warranties from everyone here. I have always been of the mindset not to pay for an extended warranty, just bank that money you would have spent on warranty for potential repairs in the future, but interested in feedback if a Raptor will likely have more than $5k worth of repairs needed between the factory warranty expired and extended duration? 60K mile factory power train warranty, extended warranty usually 100K (so paying ~$5K I hear for 40K miles of coverage on powertrain). Recognize the electronics as well so welcome the thoughts.

Enjoy your new truck, don't get too hung up in the wait it's driving all us waiting crazy...

 

[AxelR]

My favorite CU for the past 10 or 12 years: DCU.
You’ll need to become a member ($5 or $10) and if you bank (doesn’t have to be all of your income) with them, they offer 1.49% (1.24% on EV) for up to 65 months.
They also offer GAP that can be bought outside of the loan.

When it comes to equity, it’s always hard to say what something is worth once totaled and the market keeps changing (although it seems to be in “owners” favor these days).

 

[cdiddy4224]

I currently have DCU. They’re definitely not the lowest. The best rate I’ve found is with Carolina Cooperative Federal Credit Union. You do have to jump through some hoops to join. I plan on using them when my truck comes in, that is, if it ever comes in.

 

[AxelR]

@cdiddy4224 what rates are we talking about here?

 

[4wheelinAZ]

IMO:
If you're financing $30K-$35K do not let them sell you GAAP insurance, there is no gap to cover. You have equity so in the event it gets totaled the insurance would pay you the difference in value and payoff. GAAP is for when you owe more on the loan than what the insurance company deems its totaled value at the time.

Get pre-approved by your credit union and use that rate to negotiate. Let's say your CU is offering 1.75% financing for 72 months, then tell the dealer if they can beat that you'll go with them otherwise just go with your CU. Out of state does make the transaction with your credit union a little harder but just go see them before you head out and line it all up before you go.

I am sure there are all kinds of varying opinions on extended warranties from everyone here. I have always been of the mindset not to pay for an extended warranty, just bank that money you would have spent on warranty for potential repairs in the future, but interested in feedback if a Raptor will likely have more than $5k worth of repairs needed between the factory warranty expired and extended duration? 60K mile factory power train warranty, extended warranty usually 100K (so paying ~$5K I hear for 40K miles of coverage on powertrain). Recognize the electronics as well so welcome the thoughts.

Enjoy your new truck, don't get too hung up in the wait it's driving all us waiting crazy...

You can get a very good termed warranty with Flood Ford for about $2k max. $5k? No way.

 

[FordPerf Addict]

FYI
before you buy extended warranty or a service plan
CHECK PRICES HERE

Ford Protect Sales - Geniune Ford ESP extended warranty

Ford Protect - Ford extended warranty for your Ford, Lincoln vehicle. Instant online quotes.

www.floodfordesp.com

This will save you about $1-2000 on the ESP (maybe more) and also on the service plan. they sell almost at dealer cost it seems. this is a MUST for ext warranty and service plans. and what you dont use is refundable if you sell the vehicle, or transferrable to private party. dont buy this from dealer

 

[Raptorial]

Hmm ask a bunch of

My favorite CU for the past 10 or 12 years: DCU.
You’ll need to become a member ($5 or $10) and if you bank (doesn’t have to be all of your income) with them, they offer 1.49% (1.24% on EV) for up to 65 months.
They also offer GAP that can be bought outside of the loan.

When it comes to equity, it’s always hard to say what something is worth once totaled and the market keeps changing (although it seems to be in “owners” favor these days).

good point. If any of you guys are paying ADM and financing, you better buy Gap coverage lol

 

[Stojanowski]

Try UFCU.org in Austin... It's who I have been using lately and their rates are real low especially if you finance less than the sticker price