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Old 01-07-2019, 07:36 PM
 
3,045 posts, read 4,987,647 times
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Quote:
Originally Posted by buenos View Post
Why does Ford insist for its customers to take financing?
I mean that the rebate is tied to taking financing.
That they would take the hit of a no-sale, while trying to force people to buy not with cash but with financing.
They make money off the interest on the loan, when you finance through them. That is, unless you pay it off early. They know most customers just don't have the cash, and are going to need the financing, so very few will likely pay the loan off after just a month or two.
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Old 01-08-2019, 08:49 AM
 
Location: Raleigh
7,483 posts, read 5,532,186 times
Reputation: 10244
Quote:
Originally Posted by buenos View Post
Why does Ford insist for its customers to take financing?
I mean that the rebate is tied to taking financing.
That they would take the hit of a no-sale, while trying to force people to buy not with cash but with financing.
The ford website says the rebate is a prepaid debit card, but it does not say whether it can be spent on or cashed out...
If you take the rebate instead of applying it to the deal. Meaning they send you a PP Debit card rather than a check. But you can almost certainly apply it to the deal. I could be wrong, but...

They insist on the financing so they can make money. And the savviest customers will invest their cash lump sum, and the savvy will take the financing and write a check to pay the whole thing off, and others will just let the financing ride.
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Old 01-09-2019, 09:04 AM
 
Location: Raleigh, NC
2,066 posts, read 3,181,663 times
Reputation: 2507
FYI: Another term used to describe factory incentive rebates is "Trunk Money" (cash left in the trunk by the factory to get you to buy the car). My last car had a big one, and as mentioned above, it was deducted from the cost, pre-tax.
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Old 01-09-2019, 09:47 AM
 
Location: Raleigh
7,483 posts, read 5,532,186 times
Reputation: 10244
Quote:
Originally Posted by Ed_RDNC View Post
FYI: Another term used to describe factory incentive rebates is "Trunk Money" (cash left in the trunk by the factory to get you to buy the car). My last car had a big one, and as mentioned above, it was deducted from the cost, pre-tax.
Or "Money on the Hood."
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Old Yesterday, 04:24 PM
 
997 posts, read 1,375,294 times
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Ford now offers a $3000 cash rebate on 2018 vehicles ($2500 rebate plus $500 vin specific). The dealer says they cannot go below MSRP-$1000, aka $24600. Or if I take financing then MSRP-$4000.
In the first case, it seems that they are thinking that the purpose of factory rebates is to compensate the dealers for the hassle of having to take care of the car for several months on their lot, and not a customer incentive. Another dealer told me they can offer $2500 off on 2018 vehicles, just that they dont have the color/features that i want, or $1500 on 2019 models.
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Old Yesterday, 04:27 PM
 
Location: Aurora Denveralis
4,934 posts, read 1,624,428 times
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Quote:
Originally Posted by buenos View Post
FIn the first case, it seems that they are thinking that the purpose of factory rebates is to compensate the dealers for the hassle of having to take care of the car for several months on their lot, and not a customer incentive.
Very few incentives are really for consumer benefit. However, you might want to google around on "flooring," as in the rolling loan system dealerships have for their stock. It's not sitting there for free.
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Old Today, 08:47 PM
 
997 posts, read 1,375,294 times
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They called me back, they said the same price is okay without financing. I bought it this morning.
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