for those of you that went through ford financing, what kind of rates did you get? just curious about the rates (i realize there's a lot of variation)

 

Ford will rape you...contact your local credit union for the lowest rates. You may have to open a savings account, but you can do that with a bare minimum deposit ($25-55). A credit union will beat a bank's rates too. Pick out your car, write down the price, go to the credit union and give them that figure, and they will cut you a check to take to the dealership after receiving a copy of the invoice (fax machine is good). Credit unions also offer cheaper GAP insurance, which I highly recommend getting.

 

I opted not to get the GAP insurance. I put $4,000 down and got the car for almost invoice. I figure if it ain't worth $23,400, the balance of my loan, then something is freaking wrong with this picture. I've also been with statefarm for years and if they won't give me what I owe in the event of a total loss then they will be out my premiums for the next 40 years or so. If you don't have a lot to put down then definately get the extra insurance.

 

I have top notch credit and ford gave me 8.9%. Their GAP insurance was $600. I financed through my credit union at 5.65% and their GAP was $195.

For a GT I don't think I'd get the GAP myself.

 

I know exactly what you mean. I have perfect credit and the best ford could do was I think 8% even. The finance manager looked at my credit score and my income and said "this is crazy, you could buy a GT (not a mustang GT, a GT) with nothing down at prime with someone else!". I got prime with my bank, but the moral of the story is, dont go with ford financing under any circumstances.

 

Call me old fashioned, but GAP insurance used to be something that they charged stupid people for not knowing better than to turn it down

Like the insurance they try to sell you with credit cards that ensures they get paid if you file for bankruptcy...

I guess I am tainted in a few ways for this conversation, but it seems to me that the Mustang is not in a price range that would justify what GAP promises (much less that I have no expectation that they would really deliver)...

 

I always bluff the dealers. I go in there with my poker face when they offer the finance options on a car and tell them, I can get 4 or 5% from my bank or such and such credit union. I then tell them I'll be back in a couple of days. Since my credit is excellent, they don't question it and just give me that %.

Funny thing is that my purchase last year, the dealer ended up going through my bank anyways

As for GAP insurance..I NEVER buy it. Correction did once when my fiance at the time traded in a one year old car that was upside down on the loan and rolled the difference into the new vehicle. The new vehicle was like 10K upside down rolling off the lot [&:]

Gap Insurance and Pay off benefit insurance. Don't buy 'em. Most car insurance policies have a rider you can add to your existing policy to cover one or both if you feel you must have them and are WAY CHEAPER than a whole specific policy.

 

my local credit union is offering me 5.35%...should i go to the deal when buying the car and see if they can offer me something better? what shoudl i do? how exactly does gap insurance work again?

 

You won't get better from the dealer...I'd jump on that 5.35%

Buy GAP!!
I bought a 2005 GT, and 'something' happened...it was totaled. I paid $0 down and had it about 6 months (roughly paid $3,000 on the $31,000 loan). Insurance covered $25,000, Gap covered the rest + paid my insurance deductable + gave me $1,000 to put down on my next vehicle. I actually made money off the accident due to my insurance paying up front for 1 month of rental car coverage, and I was in a 2006 GT just like my last Stang, but with polished 18" wheels, in less than a week.

Not that I'm bragging, but this was my experience, which turned out very well for me...Thank God! I'm fortunate just to be alive, but the rest is a great bonus.

 

If you OWE more than the car is worth after you drive it off the dealer's lot, ALWAYS BUY GAP INSURANCE! It covers the difference between what you owe and what the car is worth. If you total the car early into your loan, YOU will have to pay that difference. Also, always shop around for interest rates. I have usually gotten my best rates at my credit union. My GAP insurance has always been cheaper through my insurer.