FORD- needs to go 0% interest

Fez WQ · 23-10-2012, 12:05 AM

All other car makers are doing this. Ford is doing it in the US but NOT here. When will Ford offer finance at 0% interest. I for one would snap up a new Focus

1TUFFUTE · 23-10-2012, 12:41 AM

it sure sounds like a great idea...for the customer and selling numbers...but that doesnt mean its viable for them...espescially in the real world...where the struggle to get enough of any models except the local builds. Two and two together..its a stupid idea for rangers and all the small med and import cars. Would you be prepared to wait 6months for that cheaper finance car or would you still go the the other brands with no wait and cheap rates?????

Fez WQ · 23-10-2012, 01:05 AM

Still the real world in the US and they get it there at 0%
The 0% finance deals are done via a 3rd party - Ford don't loose out except on up front commision

4.0i_SiX · 23-10-2012, 07:30 AM

We were shopping around for a new car and approached ford about the same thing, as Toyota and nissan are offering 0% interest. Upon further investigation the fine print says it is only for a 3 year period. Obviously depending on your financial situation and the type of car you are purchasing, you may or may not be able to pay off the whole thing in 3 years.

We settled on a late 09 G6E Turbo, couldnt resist...

jpd80 · 23-10-2012, 08:06 AM

That 0% financing applies to the full RRP of the vehicle, depends whether current discounts exceed the normal interest paid.

tweeked · 23-10-2012, 08:11 AM

Quote:

Originally Posted by Fez WQ

Still the real world in the US and they get it there at 0%
The 0% finance deals are done via a 3rd party - Ford don't loose out except on up front commision

Which costs........????

Joe5619 · 23-10-2012, 08:35 AM

Quote:

Originally Posted by jpd80

That 0% financing applies to the full RRP of the vehicle, depends whether current discounts exceed the normal interest paid.

Exactly!! These deals are never as good as they seem..

I saw the same thing on a TV once, went it, but they could not get anywhere near the market going price when I wanted to use the interest free terms, but could if I payed up front. What they lost in interest they make up in a higher price. Using there "interst free terms" made the deal much worse than paying up from & putting in on a credit card for 2-3 years!

It is a shame that some many get stuffed around these deals. Don’t believe them!!.

Joe5619 · 23-10-2012, 08:41 AM

Quote:

Originally Posted by Fez WQ

Still the real world in the US and they get it there at 0%
The 0% finance deals are done via a 3rd party - Ford don't loose out except on up front commision

I'm not so sure about that.. Why would any company take up business that gets them nil dollars in return. In fact they would make a loss on this, because they could just put their money in the bank & get more of a return. Car companies do it because they get a sale out of, but what do the 3rd party companies get from it?

Rodp · 23-10-2012, 08:51 AM

You'd likely be better off (or all square) if you negotiated a good price or changeover and pay the higher interest rate than paying full RRP at 0% or low interest. Just like 4c off fuel, it catches people who think they're getting a bargain when they're paying for it in the end.

XWGT · 23-10-2012, 09:03 AM

Quote:

Originally Posted by jpd80

That 0% financing applies to the full RRP of the vehicle, depends whether current discounts exceed the normal interest paid.

Not any more.

Have heard of two examples where Toyota finance have said crunch the best price you can.

The game has changed even further

jpd80 · 23-10-2012, 09:07 AM

Quote:

Originally Posted by XWGT

Not any more.

Have heard of two examples where Toyota finance have said crunch the best price you can.

The game has changed even further

Impresses and also curious to which vehicles we're talking about and whether the discount was that great...

0% financing works on lower cost vehicles where discounts are not as great as say, Falcon and Commodore
where discounts can be $8,000 to $10,000 below RRP

SpoolMan · 23-10-2012, 09:12 AM

Quote:

Originally Posted by jpd80

That 0% financing applies to the full RRP of the vehicle, depends whether current discounts exceed the normal interest paid.

True, but 0% interest still gets backsides in new cars.
$35,000 on 9.00% interest rate 5 year loan $8593 in interest, payments $727 a month.
The above on 0% interest on the same time frame repay $583 monthly, thats a $144 monthly difference, this could be the difference for some whether they can afford to buy a new car or not..
I know there are some rules on time frames and amounts etc depending on fine print and who is supplying the loans.
It shows the low or zero rates look very attractive for potential buyers.

XWGT · 23-10-2012, 09:14 AM

Quote:

Originally Posted by jpd80

Impresses and also curious to which vehicles we're talking about and whether the discount was that great...

0% financing works on lower cost vehicles where discounts are not as great as say, Falcon and Commodore
where discounts can be $8,000 to $10,000 below RRP

Yes your right, but its a very very competitive market at the moment.

In a way the whole $10k discount thing works against Ford here as people would happily pay $30k at 2.9% rather than have to haggle down to $30k and pay 7%

FGII-XR6 · 23-10-2012, 09:15 AM

you are paying the interest in the purchase price. the interest free applies only to full retail price. no discounts and trade in is only at wholesale value
the no interest is aimed at costomers too stupid or too lazy ( or both) to do the sums

Smoke Pursuit · 23-10-2012, 09:26 AM

Quote:

Originally Posted by jpd80

That 0% financing applies to the full RRP of the vehicle, depends whether current discounts exceed the normal interest paid.

Not true.....

Toyota will sell you an Aurion at 32 kay and give you 0% interest... Retail is approx 38.

vztrt · 23-10-2012, 09:29 AM

Quote:

Originally Posted by XWGT

Not any more.

Have heard of two examples where Toyota finance have said crunch the best price you can.

The game has changed even further

It seems to be for the Aurion and Camry models (from the ads on TV) were the 0% finance actually looks tempting. All I can think off is how much excess stock do they have if they need to do this. Its the same as employee pricing. Ford did it when they couldn't park the excess cars anymore and Holden are doing it now when they have to much stock when their sales plummeted.

jpd80 · 23-10-2012, 09:37 AM

Quote:

Originally Posted by DASH GT

Not true.....

Toyota will sell you an Aurion at 32 kay and give you 0% interest... Retail is approx 38.

Hmmm, I take it that you have first hand info on this (talked to a dealer - someone who bought one) because i see nothing on their website..

Edit,
The difference is that Toyota does their own financing in-house, maybe they are prepared to wear the cost on a few sales...

Brazen · 23-10-2012, 09:42 AM

Quote:

Originally Posted by jpd80

Hmmm, I take it that you have first hand info on this (talked to a dealer - someone who bought one) because i see nothing on their website..

Edit,
The difference is that Toyota does their own financing in-house, maybe they are prepared to wear the cost on a few sales...

No it's a proper Toyota price on TV ads. 28990 driveaway for Camry and 32990 driveaway for Aurion both with 0% interest.

Brazen · 23-10-2012, 09:45 AM

It's not costing the car makers as much as you think if they do it smart. What the car makers should be doing is utilising their multinational locations. Ford AU could borrow funding from Ford US at 0.8% then lend it back here to Australian car buyers. Ultimately wouldn't cost Ford AU anything.

jpd80 · 23-10-2012, 09:54 AM

Quote:

Originally Posted by Brazen

No it's a proper Toyota price on TV ads. 28990 driveaway for Camry and 32990 driveaway for Aurion both with 0% interest.

Wow, they must be hurting.....

Fiesta_Man69 · 23-10-2012, 09:55 AM

Quote:

Originally Posted by Fez WQ

All other car makers are doing this. Ford is doing it in the US but NOT here. When will Ford offer finance at 0% interest. I for one would snap up a new Focus

Obviously Ford Aus is not in a financial position to do this.

Brazen · 23-10-2012, 10:04 AM

Quote:

Originally Posted by Fiesta_Man69

Obviously Ford Aus is not in a financial position to do this.

You don't have to be in any position. Toyota could simply be borrowing in Japanese yen which has a 0% interest rate, convert this to Aussie dollars and lend it out. The only cost will be a cheap put option to guard against foreign currency exchange risk. Funnily enough if the Aussie appreciates they could even make money on the deal as they will need to pay back less Aussie dollars.

These car companiese have finance teams who buy, sell parts and vehicles from all over the world and hedge currency fluctuations every day, this finance thing would be a piece of pee.

Sprint · 23-10-2012, 10:04 AM

been 0 in america for some time now

BENT_8 · 23-10-2012, 10:40 AM

Quote:

Originally Posted by SpoolMan[B

]True, but 0% interest still gets backsides in new cars.
[/B]$35,000 on 9.00% interest rate 5 year loan $8593 in interest, payments $727 a month.
The above on 0% interest on the same time frame repay $583 monthly, thats a $144 monthly difference, this could be the difference for some whether they can afford to buy a new car or not..
I know there are some rules on time frames and amounts etc depending on fine print and who is supplying the loans.
It shows the low or zero rates look very attractive for potential buyers.

Exactly, as i aluded to in the compound house thread, people can no longer just add their new car purchase to their existing mortgage as the LVR is getting tighter and alot of people have already used their homes as ATM's.
Offering 0% just makes it look like they can service the loan which they may not get at 8% etc.
It is a scam, a desperate scam to keep dealerships open until things improve.
Why else would it be on offer in the current economic climate?

SpoolMan · 23-10-2012, 11:22 AM

Melbourne Paper.
Herald Sun Cars Guide Friday one dealer had the Camry $28,800 drive away 0% finance.

Deaks · 23-10-2012, 11:49 AM

Are we saying that we should be doing what America has been doing? Really?

Lets look elsewhere for bright financial ideas.

XBROO · 23-10-2012, 12:09 PM

Quote:

Originally Posted by Deaks

Are we saying that we should be doing what America has been doing? Really?

Lets look elsewhere for bright financial ideas.

Smoke Pursuit · 23-10-2012, 12:14 PM

Quote:

Originally Posted by jpd80

Hmmm, I take it that you have first hand info on this (talked to a dealer - someone who bought one) because i see nothing on their website..

Edit,
The difference is that Toyota does their own financing in-house, maybe they are prepared to wear the cost on a few sales...

Renaults the same... Holden was the same on the .5% You can negotiate the price of your car.

Toyotas finance division would be wearing part of the cost of it, its good marketing, gets customers on the books which helps when they want to make their next purchase.

Heres the disclaimer... Not on demos.

* 0% comparison rate available to approved personal applicants & a 0% annual percentage rate is available to approved Bronze Fleet & primary producer applicants of Toyota Finance for the financing of current generation Camry, Camry Hybrid & Aurion models. Excludes demos. Finance applications must be received and approved between 19/9/2012 and 31/12/2012 and vehicles registered and delivered by 31/12/2012. Maximum finance term of 48 months applies. Conditions, fees & charges apply. Comparison rate based on a 5 year secured consumer fixed rate loan of $30,000. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Toyota Finance is a division of Toyota Finance Australia Limited ABN 48 002 435 181, Australian Credit Licence 392536

mik · 23-10-2012, 12:16 PM

well the thing about is whether it`s a good deal or not for mr/mrs joe average that buys a car once every x amount of years, they are going into these dealers with the 0 % advertising and probably looking at the nice new cars, sitting in them getting a whiff of that nice new car smell then glancing at their old clunker out in the car park and the sale is half done,
even if the deal is not as good as first thought they are likely in many cases to weaken and go with the sale, no doubt the salesman will sweeten the deal with some trinkets,
no brainer imo, to stay competitive you gotta keep up with the Jones .

Joe5619 · 23-10-2012, 12:41 PM

Quote:

Originally Posted by Brazen

It's not costing the car makers as much as you think if they do it smart. What the car makers should be doing is utilising their multinational locations. Ford AU could borrow funding from Ford US at 0.8% then lend it back here to Australian car buyers. Ultimately wouldn't cost Ford AU anything.

The world does not work like that!! Why ford USA want to give Ford Australia money & only charge them interest of only 0.8% when they can leave it in the bank & get much much more. Ford USA would be lossing here. Anytime someone gets interest for nil or 0.8% someone is paying for it somewhere!