Ford Motor Credit (or Ford Credit) allows several financing options for car buyers. Options range from leasing a vehicle to purchasing a vehicle. Refinancing a vehicle can help lower the costs of interest and monthly payments as a result of newer finance options and good credit. Like any financing option, refinancing requires the basics of a credit check and proof of identity before the company will approve the loan.
- Skill level:
Things you need
- Photo ID
- Tax paperwork
- Proof of income
Apply online at Ford's credit web site. Online applications require filling out the information, reviewing it upon completion, submitting the application at which time a credit check is run, and then taking the decision certificate to the Ford dealer. According to the Ford Credit application page, if online approval does not go through, it does not mean that refinancing is not available, but rather, there is not enough information to make a decision.
Talk to a Ford financing representative. Go to the nearest Ford location and talk about available options for the vehicle. These options will vary based on the age of the vehicle, the amount still owed and the type of vehicle. If the online application goes through, a certificate is given stating the amount available and the Ford representative can then finish up the details, such as initial payments and checking ID.
Provide a photo ID and proof of income; previous tax information is also sometimes necessary to establish the payment that you can afford. A photo ID proves identity, while proof of income determines the amount of available funds. Refinancing might require giving other loan information, such as any mortgage or student loans you may hold. Ford credit refinancing needs to ensure the maximum loan amount for every loan payment is no more than around 30 per cent of a monthly paycheck before any loan is approved. If refinancing will result in higher payments or will not change payments enough to make much difference, it is better to avoid refinancing.
Give permission for a credit check. A credit check determines the interest rates that are offered for refinancing. Good credit will result in lower interest rates, while bad credit can result in very high rates. It's worth paying the initial costs of refinancing, only if it lowers the cost at least one per cent when compared to current rates. Ford credit refinancing needs a credit check to determine eligibility and will not give funds unless a credit check is performed and credit is good enough for the refinancing. If the online process was used, the credit check part of the application is completed.
Pay the costs of refinancing. Like initial loan costs, refinancing has initial expenses in terms of closing costs and other upfront fees that are paid immediately. These costs range from around £650 to a few thousand dollars. Ford credit refinancing is like any other loan and has initial costs to get the loan started. The exact cost is usually based on the cost of the vehicle and the amount of loan being taken out to refinance the vehicle.
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