Cash purchase and incentives

[Frio]

If you pay cash for your vehicle do you still qualify for any incentives that may be available? Right now on a Lariat the web site is showing a $2000 incentive (up from 1250 when I ordered, and down from the 2250 a week or so ago). The word "May" in the statement "May Require Ford Credit Financing" makes it unclear to me. Anyone have any experience in with this?

Clicking for more information on a cash purchase reveals what's below which makes me believe the incentive is valid for a cash purchase. BUT, does a custom order count as dealer stock?

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[Tom_C]

I don't know all the rules. When I purchased I think part of the incentive was to be a cash sale. I can't keep it all straight.

I think special order should still qualify for incentives though.

 

[driverdenali]

If you pay cash for your vehicle do you still qualify for any incentives that may be available? Right now on a Lariat the web site is showing a $2000 incentive (up from 1250 when I ordered, and down from the 2250 a week or so ago). The word "May" in the statement "May Require Ford Credit Financing" makes it unclear to me. Anyone have any experience in with this?

Clicking for more information on a cash purchase reveals what's below which makes me believe the incentive is valid for a cash purchase. BUT, does a custom order count as dealer stock?

The answer to your question:
Alot of incentives require financing or partial financing, even if it’s a loan for 5k and you pay off next day.

Edit: you can always call a dealer, don’t call the one you’re trying to buy from, and get a general idea before negotiating with the location you want to purchase truck from.


A recommendation out of my ass:

Paying cash for a vehicle this day and age is outdated and not a very good practice regardless. You’re better off getting a loan, assuming you have good credit cause you have cash for a truck, and putting the cash into an investment fund that’s better than your interest (rate on the car loan right now with a credit above 700 your loan should be zero or close to zero) and make money on those investments and a car payment, vs dumping cash into a depreciating asset and not growing wealth.

TLDR: incentives require financing 90% of time.

 

[eds21]

If you pay cash for your vehicle do you still qualify for any incentives that may be available? Right now on a Lariat the web site is showing a $2000 incentive (up from 1250 when I ordered, and down from the 2250 a week or so ago). The word "May" in the statement "May Require Ford Credit Financing" makes it unclear to me. Anyone have any experience in with this?

Clicking for more information on a cash purchase reveals what's below which makes me believe the incentive is valid for a cash purchase. BUT, does a custom order count as dealer stock?

I dont know about this specific rebate but I do know what when I was looking for mine a couple of months ago I spoke to 4 different dealers over a two week period and most of the incentives they were offering, had very specific requirements. When I finally bought mine, I was told that I had to finance with them to get one of the incentives (I think it was $1500 at the time). Since I was paying cash but wanted the $1500 incentive, I put half down, financed the other half with them and then sent in the full balance two weeks later and paid it off. So I paid less then $100 interest but got my $1500 discount.

 

[Tom_C]

I bought the end of March and got $3000 manufacturers incentives that I believe were worded for cash sale. I thought it was weird they would give an incentive on a cash sale. I had a loan from my credit union so it counted as a cash sale as far as the dealer was concerned.

 

[Frio]

Paying cash for a vehicle this day and age is outdated and not a very good practice regardless. You’re better off getting a loan, assuming you have good credit cause you have cash for a truck, and putting the cash into an investment fund that’s better than your interest (rate on the car loan right now with a credit above 700 your loan should be zero or close to zero) and make money on those investments and a car payment, vs dumping cash into a depreciating asset and not growing wealth.

Yes, understood but good advise nonetheless. Just exploring all options as the time spent with a shady financier draws ever closer

 

[WhyNot21]

I just purchased a couple weeks ago when the Lariat rebate was $2,250. I used my CU to finance and had no issue with using the rebate.

 

[Frio]

I dont know about this specific rebate but I do know what when I was looking for mine a couple of months ago I spoke to 4 different dealers over a two week period and most of the incentives they were offering, had very specific requirements. When I finally bought mine, I was told that I had to finance with them to get one of the incentives (I think it was $1500 at the time). Since I was paying cash but wanted the $1500 incentive, I put half down, financed the other half with them and then sent in the full balance two weeks later and paid it off. So I paid less then $100 interest but got my $1500 discount.

This is most likely what I'll end up doing too, just trying to check all the boxes before hand.

 

[Samsquanch]

I purchased in March and the incentive required financing with Ford credit at a disgusting 5.9% rate. I have an ideal credit score and that was literally the prime rate from Ford which is bad in today’s market. There is no prepayment penalty on the loan at least in my state so i turned around and refinanced for 1.9%

you could always just refinance later if it’s required or just pay the loan off if you have the cash. Just make sure there are no prepayment penalties on the loan for either strategy.

 

[VAMike]

Paying cash for a vehicle this day and age is outdated and not a very good practice regardless. You’re better off getting a loan, assuming you have good credit cause you have cash for a truck, and putting the cash into an investment fund that’s better than your interest (rate on the car loan right now with a credit above 700 your loan should be zero or close to zero) and make money on those investments and a car payment, vs dumping cash into a depreciating asset and not growing wealth.

I bought my truck in April 2019. I could have paid cash instead of getting a loan...but the S&P500 return over the past 2 years has been around 40%. As long as you have the self-discipline to not blow the cash on hookers and booze, it makes no sense to not take a low-interest loan and put the cash to work.

 

[Frio]

As long as you have the self-discipline to not blow the cash on hookers and booze

Dammit, busted.

 

[WhyNot21]

I purchased in March and the incentive required financing with Ford credit at a disgusting 5.9% rate. I have an ideal credit score and that was literally the prime rate from Ford which is bad in today’s market. There is no prepayment penalty on the loan at least in my state so i turned around and refinanced for 1.9%

you could always just refinance later if it’s required or just pay the loan off if you have the cash. Just make sure there are no prepayment penalties on the loan for either strategy.

This must be at the discretion of the selling dealer. As I said, it was not a requirement when I bought mine a month later.

 

[NeptuneRanger]

There is nothing wrong with being debt free. I took a zero interest loan and 6k off MSRP and paid off the truck in less than a year, did the same with my wife’s car. Dealers asked me to make six payments so their commission wouldn’t unwind.

To each their own, for me personally I like the feeling of actually owning a truck outright, don’t the like the concept of indebtedness.

 

[Leftcoast]

I bought my truck in April 2019. I could have paid cash instead of getting a loan...but the S&P500 return over the past 2 years has been around 40%. As long as you have the self-discipline to not blow the cash on hookers and booze, it makes no sense to not take a low-interest loan and put the cash to work.

Any reasonable financial plan doesn't expect the S&P to return 40% every two years for perpetuity.

 

[Frio]

One question no one has addressed is... does an ordered vehicle qualify as "dealer stock"?

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