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I have looked all over the ford credit website but see no signs of a prepayment penalty.
Recently when I took delivery the dealer said if I financed with ford credit I would be required to keep the loan for 3 months before paying it off or transferring the loan.
Is this another scam of dishonesty by a dealer as I don't see why they could demand you keep the loan with Ford for 3 months if you wanted to pay off the loan in cash immediately or transfer the loan.

Anyone had any recent experience?
 

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No, Car loans, especially through Ford Motor Credit are Simple Interest loans.

Meaning there is no prepayment penalty, and no minimum amount of time required to maintain the loan in good standing.
 

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Just prepaid mine with FMC - no penalty.

Dealers don't make their financing profit if you pay off within three months.

Sent from my HTC One using Tapatalk
 

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I was wondering about this as well. I'm planning to pay off my car in a year by paying more each month.

Just prepaid mine with FMC - no penalty.

Dealers don't make their financing profit if you pay off within three months.

Sent from my HTC One using Tapatalk
Is that why dealers tell you to wait 3 months before refinancing?
 

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if you get special financing rate thru ford credit you must keep the loan for 3 months before you pay it in full. this is only if there is an incentive like $2000 off or something to that degree. my foremen just bought a 13 leftover f350 4x4 and got 5k off he was gonna pay in cash but the told him to get the 5k off he had to get the financing thru ford credit and keep the loan for 3 months before its paid in full or he would have to pay the 5k back. you can make over payments with out any repercussions just make sure you take 3 months to pay off.
 

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Hey there,

I'm actually an employee of Ford Credit. You will not be accessed a prepayment penalty if you pay off your loan early. As soon as we fund your loan, you can payoff as soon as you like regardless if you took special APR, rebates, or both.

PM me if you have any other questions.
 

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No but if you don't tell them to put your extra payment to the principle they throw it on the interest. I've paid almost 3k interest without realizing it.
 

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No but if you don't tell them to put your extra payment to the principle they throw it on the interest. I've paid almost 3k interest without realizing it.
If you pay extra, it's applied toward your payments which pays your account ahead unless you specify you want it applied toward principle.

When you review your statement, it will reflect how your payment was applied since your account would be paid ahead.
 

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Hey,

Just wondering if you could help me out here. I financed a truck with ford about 3 wks ago because of the incentives. The guy was a total d and financed the loan for 7.39%. I thought no biggie I'll just refinance asap. Figured they are going to make money from my trade in anyway. The finance guy told me that I had to wait to 2-3 mos in order to refinance. However, my local CU offered a lower rate and the offer would have expired at the end of this month...so I went ahead and refinanced. The loan was paid off and there was no pre-payment penalty. However, the dealer keeps calling me saying that I will need to pay back those rebates I took. I'm also having trouble getting refunded for my ext warranty and gap. What do you suggest I do?Thanks, Idk if I should have posted somewhere else.
 

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Hey guys,

Finance manager at a Ford Dealership. I can tell you 100% there is no prepayment penalty. It is illegal to tell the customer what you were told. Call Ford Credit and make them aware of who told you this in the dealership and what store it was. We can get in a lot of trouble for doing this.. It is correct that we are charged back our financing profit if the loan is paid before 90 days. They are only telling you this in an effort to make money. We sell trucks and cars this way ALL the time.. Finance thru Ford to get the rebate, and then transfer the loan to your local bank or Credit union for 1/2, (and sometimes even less than that) the rate, and you get the rebates then...

This is bogus, and it should not be tolerated.... It's my job as an F&I manager to make money like this too, BUT I do it honestly and tell people that you DO NOT HAVE TO WAIT.

Anyone with questions please feel free to PM me. Ford Credit's Customer service # is 1-800-727-7000
 

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if you get special financing rate thru ford credit you must keep the loan for 3 months before you pay it in full. this is only if there is an incentive like $2000 off or something to that degree. my foremen just bought a 13 leftover f350 4x4 and got 5k off he was gonna pay in cash but the told him to get the 5k off he had to get the financing thru ford credit and keep the loan for 3 months before its paid in full or he would have to pay the 5k back. you can make over payments with out any repercussions just make sure you take 3 months to pay off.
This is a Lie. The dealer cannot charge you for a rebate after the sale is completed.
 

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Hey,

Just wondering if you could help me out here. I financed a truck with ford about 3 wks ago because of the incentives. The guy was a total d and financed the loan for 7.39%. I thought no biggie I'll just refinance asap. Figured they are going to make money from my trade in anyway. The finance guy told me that I had to wait to 2-3 mos in order to refinance. However, my local CU offered a lower rate and the offer would have expired at the end of this month...so I went ahead and refinanced. The loan was paid off and there was no pre-payment penalty. However, the dealer keeps calling me saying that I will need to pay back those rebates I took. I'm also having trouble getting refunded for my ext warranty and gap. What do you suggest I do?Thanks, Idk if I should have posted somewhere else.
This is completely ridiculous...

They CAN NOT CHARGE YOU for rebates. This is illegal practice. They also cannot deny your request to cancel Warranty and GAP.. If you refinanced, you can still keep the warranty... but you can still cancel it if you want. Also the GAP you definitely want to cancel. They HAVE to honor a customer request. If they dont, get your paperwork out for the GAP company and call their customer service and tell them the dealer is refusing to cancel your contract. Same with the warranty company.

If you need help with this dont hesitate to PM me.

I hate this type of image that I get as a dealership F&I manager b/c people out there like this try and pull this kind of BS... It's illegal.. THey're just trying to make $ in a dishonest fashion. The warranty and GAP cancellations affect them the same as the early payoff.. they get charged back the profits and it affects their paychecks.. Not your problem.
 

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Just prepaid mine with FMC - no penalty.

Dealers don't make their financing profit if you pay off within three months.

Sent from my HTC One using Tapatalk

This is why they insinuate that you must keep for three months. There is no legal way they can force you to.
 

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Wait, Ford Credit is applying extra-paid money towards *interest* and not principal?!? That is just incredibly, horribly wrong. I guess I should be glad my dealer went with Wells Fargo for a better deal, I just looked at my account & it looks like everything extra I sent in they applied towards the principal.

I would scream bloody murder if a bank tried otherwise. What shameful business practices. This will certainly give me pause to buy another Forc (and most of my family is uaw). Ford if you're monitoring these forums you should fix this.
 

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Wait, Ford Credit is applying extra-paid money towards interest and not principal?!? That is just incredibly, horribly wrong. I guess I should be glad my dealer went with Wells Fargo for a better deal, I just looked at my account & it looks like everything extra I sent in they applied towards the principal.

I would scream bloody murder if a bank tried otherwise. What shameful business practices. This will certainly give me pause to buy another Forc (and most of my family is uaw). Ford if you're monitoring these forums you should fix this.
No. You are overreacting. It is the loan holders RESPONSIBILITY to understand the TERMS AND CONDITIONS of your loan agreement. Those terms and conditions could claim all kinds of ridiculous policies & the only person at fault is the person who agreed to the terms.

If Ford Credit wants payments to default towards pre-payment of regular payments, that is ENTIRELY legit & not fraudulent, and further likely spelled out clearly in the terms and conditions. You still have every right to ASK for the payment to go directly towards principle, had they refused that request now they are bordering on scummy, but it would still be within their rights (assuming it is in the terms and conditions).

Only person looking stupid right here, is the consumer who thinks he is somehow entitled to have the lender bend over backwards to his very will because so help him god he is entitled or something. Dont like the lender's terms and conditions? FINE dont borrow from them. . . . . Let alone how is the lender supposed to know what your INTENTION with the payment is? They have to assume a default of either A or B, in this case they chose B, but you want them to have chosen A. But surely if they had different policies, someone ELSE would cry they wanted it to be B, when they made it A.

Do you see how ridiculous you are being? Good for Wells Fargo, if you like their terms and conditions they DESERVE to get all your business, I wish you both well with that.

Besides IF you made extra payments to your loan & did not take responsibilty to checking the payment is accepted & applied to principle. Further you dont take that responsibility but later dont notice the regular payments have stopped coming out. If you go through ALL that and don't think to yourself "hmm I wonder where my extra payment went", then you really truly are to be ashamed. Let alone I almost guarantee Ford credit would take necessary steps to correct the situation had you contacted them shortly after seeing the payment was processed towards future payments & not principle. I almost guarantee they would go out of their way to explain the policy to you & make the situation right.
 

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Straightline, your passionate post is directed at something Lottadot said five and a half years ago.

This entire thread was resurrected by a spambot, as SHOdown220 indicates above. The spam post has since been removed.

Let's just let this one slip into the past, unless someone has new questions or new information to share.

(And yes, I financed in 2014 through Ford Credit, had incentive applied toward my purchase, and then refinanced with credit union before the first payment... no issues at all).
 
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