Auto financing, if handled improperly, can be an overwhelming expense. However, with careful research and planning, you can secure the lowest interest car loan rate on the market. Ford Motor Company Credit, the lending arm of Ford, offers special rates and rebates periodically. The best way to secure a low rate on a Ford truck is to research thoroughly, improve your credit and strike when the iron is hot.
Get a current copy of your credit report. See Resources for a free copy. You need to make sure that you'll qualify for special incentive rates and rebates when they come along. Consider purchasing your FICO score, too (a FICO is a three-digit number between 300 and 850 that represents your total creditworthiness). An excellent score is above 720. You'll need an excellent score to qualify for the most competitive rates.
Fix your credit if you do not have an excellent FICO score. Do not begin researching auto rates until your credit is in tip-top shape. Clear all delinquent debt, bring accounts current, pay off any collections or judgments, and make sure you do not have an inordinate amount of revolving debt outstanding.
Do not rely strictly upon Ford Motor Company Credit. This is Ford's in-house financing unit. While it will periodically have good offers on its vehicles, you must broaden your search to local lenders and finance companies. These institutions do not have vested interest in the profitability of the Ford company and thus may offer more competitive programs.
Research current rates and rebate programs at the Ford Motor Company Credit website (see Resources). These programs will change from month to month, so do not take the first deal that seems appealing. Research rates at your local bank and credit union. So long as you have excellent credit, these rates should be in the same range.
Keep a close watch on the market. In times of economic uncertainty--such as the period following the 2008 credit crisis--interest rates tend to plummet in an effort to encourage new borrowing. In times of economic strength, interest rates often remain high.
Apply at two or three lenders when you believe rates are at their lowest. Make sure to compare all offers--those from FMCC, banks and credit unions--side-by-side prior to making a decision. Using this strategy you'll be securing the lowest possible rate for your Ford truck at that particular moment in time.
