AbsolutSpaceGirl

Is one really better than the other:

If I can get a lower interest rate but give up some of the cash back options, or go with a higher interest rate and take the cash back, and my monthly payments are roughly the same, is one better?

It looks like I may be facing this situation and I want to make the right decision.

Thanks all!

Guytonius

It all depends on your situation. I am happy with mine because I am trying to build credit and I wanted a low monthly payment, so I gave them 10,000 and took 7.9%

If you can wait till they have a 0% you'll get a better deal for sure....as you'll save quite a bit of money in the end...BUT, you might not get all the goodies they usually try to give you.

Just do the math....$25,000 plus the % interest (and tax) The bank/financing company will get a few thousand dollars from you in the end.

OH AND HERE'S A TIP: They will try to hit you with lots of other stuff to buy after you do the deal (undercoating, paint protection, interior protection, lojack, etc). Most of this stuff is TOTALLY useless, but whether you want it or not, tell them NO first....they will eventually start coming down on the prices of these things to try to sell them. Do this with your extended warranty too (if you want it) I got my extended warranty down to about 60% of what they initially wanted.

davisinla

Don't know if this applies, but another disadvantage to opting for a lower interest rate vs. cash back is that if you are able to pay off the car of early, you will lose some of the advantage of the lower rate.

Use a finance calculator (I think there's one on Ford's web site) to figure out exactly what each option will cost you.

And you should also shop around for loans.

Just my two cents.

RajunPony06

It all depends on how much of a percentage off the interest rate it will save you by going with the rate discount over the rebate. in other words, the payment difference of 1% on a loan of $25,000 financed from 7.99 to 8.99 per cent makes a difference of$12.05 per month for 60 months so you are only paying $723.00 for that difference. How much is the rebate discount? If the rebate is say, $1000 to $2000 and they are only saving you 1 per cent of the rate, then the math shows that you are better off taking the rebate. now if they are going to save you 3 per cent off the rate or better, then multiply that with the $723.00. Then you might be better off going with the finance discount instead.

kevinb120

If you are financing all or most of the amount-If you have a credit union and can get a rate in the mid 5's, then take the $1000 rebate and finance through them. If you do not, take the 4.9 from Ford and skip the rebate.

If you are putting a ton of money down($10k or so), then even with a higher rate like 6.9% would still be cheaper to take the rebate. A dealer can figure out the total of payments for all scenarios.

LurchII

I use this program, gives a quick one page look at how the numbers can change.

Jeff