Best time to apply for loan (non-Ford financing) - at ordering time? Delivery time? Trying to avoid too many hard pulls, get the best rate, etc

[RidetheLightning]

Hey all,
This is a slightly different post than other recent financing posts, so here goes - not having done an auto loan before, what is everyone’s experience about the best time to apply for an auto loan for the Lightning, keeping hard pulls, best rates, and rate lock duration in mind?

• At ordering time?
• At delivery time?
• Sometime between the two?

Thanks in advance, didn’t see any posts on this exact subject already, so hopefully this helps others too.

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[F150ROD]

Most Auto loan approvals are good for 90 days.

 

[metroshot]

When your build is confirmed with a VIN, that is the time to apply as banks do not loan without a VIN number.

Make sure you get the numbers from your Ford dealer first - tax, title, license, doc fee, tire fee, plate fee, etc...

If you want to avoid a hard pull, try Capital One Auto Navigator - it will SP your credit and tell you how much you qualify for as well as an interest rate range. Pretty accurate with those numbers so you can compare with your outside lender like a CU.

Majority of the time, your CU will beat the captive lender (FMCC).

 

[shutterbug]

When your build is confirmed with a VIN, that is the time to apply as banks do not loan without a VIN number.

I would wait for when the build is completed and it is in transit. The VIN is assigned when the build is scheduled, and that could be 2-3 months before build is completed. And depending where you are, the transit time could be 4-6 weeks. With that said, if you are planning to use a credit union, you should join it before applying for a loan.

Majority of the time, your CU will beat the captive lender (FMCC).

I always get a loan pre-approval from a credit union. The last two times, the loan from FMC was a better deal than the credit union. For example, when buying MME, I could get a 4 year loan at 0.9%, while my credit union was offering 1.74%.

 

[Sgt Beavis]

When your build is confirmed with a VIN, that is the time to apply as banks do not loan without a VIN number.

Make sure you get the numbers from your Ford dealer first - tax, title, license, doc fee, tire fee, plate fee, etc...

If you want to avoid a hard pull, try Capital One Auto Navigator - it will SP your credit and tell you how much you qualify for as well as an interest rate range. Pretty accurate with those numbers so you can compare with your outside lender like a CU.

Majority of the time, your CU will beat the captive lender (FMCC).

This is correct, but you can get pre-approved for an amount and rate before hand. That's what I do when I'm shopping multiple vehicles. That way I can pull the trigger immediately. For example, I few years back I got are-approved for a $70K loan at 1.5%. I was cross shopping the Jag F-Pace vs a Porsche Cayenne.

Of course, the Porsche won.

If you're not really cross shopping, you can apply for a loan the day before taking delivery if you want. I don't know a CU or Bank that can't get it done within a few hours.

 

[Donnelly713]

Ford doing 0% now on 2021s.

 

[RidetheLightning]

Ford doing 0% now on 2021s.

I’m expecting something in the range of 3.9% to 6.9% although if it’s anything like other high-demand/EV recent models like the Mach E: https://www.carsdirect.com/deals-articles/ford-mach-e-gt-may-be-more-expensive-than-you-think

or the Bronco: https://www.carsdirect.com/deals-articles/2021-ford-bronco-lacks-apr-deals-unlike-bronco-sport

so based on that, I’m looking at relationship discounts with banks like B of A or my employer’s credit union or other credit unions for better rates. I would definitely be open to Ford financing if it’s competitive though of course. Not sure how @shutterbug got 0.9%/4 years but maybe it was after the initial demand had died down for the MME?

 

[F150ROD]

I would give DCU a shot 1.25 for 65 months or 2.25 for 72 months

https://www.dcu.org/borrow/vehicle-loans/auto-loans.html

 

[RidetheLightning]

I would give DCU a shot 1.25 for 65 months or 2.25 for 72 months

https://www.dcu.org/borrow/vehicle-loans/auto-loans.html

Oh yeah, they’re definitely on the list, especially with the EV rate discount and the fact that I already have a relationship with them, if only to get the 6.17% on up to $1k on their savings account. (yes, I am a high yield savings account rate geek)

 

[RidetheLightning]

Thanks everyone - lots of good replies here, including loan approvals good for 90 days, shopping around as soon as you have a VIN, or maybe when the build is completed, the Capital One auto navigator, etc. I suspect DCU will give me the best rate, especially since I’m already a member, but I’ll shop it around to be sure.

 

[Jus Cruisin]

If I was financing, I'd just take care of it the week I'm picking up the vehicle. Especially for a Lightning. You could be waiting a year plus for it....

 

[shutterbug]

Not sure how @shutterbug got 0.9%/4 years but maybe it was after the initial demand had died down for the MME?

I didn't have to do anything. FMCC was offering straight loan for 3 and 4 years at 0.9% and 5 years at 1.9%. Those were definitely better than my credit union. Options balloon loans were 2.25% for 3 and 4 years. Later, when they started shipping GTs, they got Options at 1.4%. If you don't believe me, search through MME forums, on the subject.

 

[RidetheLightning]

I didn't have to do anything. FMCC was offering straight loan for 3 and 4 years at 0.9% and 5 years at 1.9%. Those were definitely better than my credit union.

Makes sense - I was looking at 5/6 year timeframes when I decided against FMCC but now I’m reconsidering. Those 5/6 year numbers at 1.9% + or - look doable - I’d rather extend the financing timeframe if I can put the $ into a super HYSA or even $10k of it into a Series I bond at 3.54%. Basically anything under my mortgage interest rate = finance as far out as possible!

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