Ford Financing & Leasing
Bayou Ford makes it easy to secure affordable financing or lease terms when you purchase a new or used vehicle. Our Ford finance experts are committed to finding the best finance or car lease deals. We can help you buy a Ford, even with bad credit or no credit. Our dealership works with trusted auto financing sources and can help find you a car loan with a low rate and flexible terms.
access_time Finance Hours
Use our free online appraisal tool to estimate the value of your trade-in, and our online payment calculator can help you find out what you can afford. When you are ready to buy or lease, you can fill out our quick online financing application, and our finance experts at Bayou Ford will help guide you through the rest of the process.
Buying vs. Leasing
Deciding whether to buy or lease a new Ford can be a difficult choice. It is important to know the differences between the two options so you can figure out which is best for you.
When you buy a vehicle, you are paying for the entire vehicle. Typically buyers make a down payment, either pay the sales tax in cash or roll the amount into the loan, and then make monthly payments with a set interest rate. This option is great for those who drive many miles, or plan on keeping their car for a long period of time.
When you lease a vehicle, you are only paying for the amount of the vehicle you use. The sales tax is included in the monthly lease payment, which is determined in part by a money factor that is much like an interest rate on a new car loan. Typically the first monthly payment is made when you sign the contract. Leasing is a great option for those who want lower monthly payments and a new vehicle every few years.
What Can I Afford?
Bayou Ford offers multiple financing options for our customers. We have dealer agreements with over 20 national auto lenders and credit unions. Each lender has several programs within their loan portfolio. Our lenders offer specialized loan products for Prime customer, Nonprime customers, and Subprime customer.
- Prime customers generally have very good credit with scores ranging between 700 and 850.
- Nonprime customers generally have average credit with scores ranging between 600 and 699.
- Subprime customers generally have below average credit scores ranging between 0 and 599.
These are some of our more popular lenders:
- Ford Credit
- Ford Credit Commercial Lending Services
- Capital One Auto Finance
- Chase Auto Finance
- TD Auto Finance
- Ally Bank
- Hancock Whitney Bank
- La Capitol Federal Credit Union
- Jefferson Financial Federal Credit Union
- Credit Union Acceptance Company
- Santander Consumer USA
- Credit Acceptance
- Crescent Bank & Trust
- Regional Acceptance
- Exeter Finance
Our lenders offer simple interest auto loans. The major advantage of simple interest loans is the interest is calculated on a daily basis off the remaining principal balance. Additional principal payments lower the remaining balance thus lowering your interest. Based on the example below if you paid an additional $100 towards principal each month you’d save $823.82 in total interest and payoff the loan off early.
|Loan Start Date||Jan-20||Jan-20|
|Term||60 Months||60 Months|
|Extra Principal Payment||$0.00||$100.00|
|Total Monthly Payment||$391.32||$491.32|
Auto loans are very different from unsecured personal loans. An unsecured loan or signature loan are not backed by collateral. If the borrower defaults on the unsecured loan the lender has no collateral to offset the unpaid debt. Unsecured loans are much riskier for a lender and generally require the borrower to have excellent credit! Auto loans are backed by collateral, which lower the risk for the lender. If the borrower defaults on the auto loan the lender can repossess the vehicle and offset the unpaid debt by reselling it. This is why the vehicle the customer selects is just as important as their credit score. These are some of the underwriting factors lenders use to determine auto loan approvals.
- Income Stability is one of the main factors lenders use to determine your purchasing power. Your ability to repay debt is determined by how much money you make. The higher the income the better the loan scores.
- Credit History is your track record of paying off debt, especially previous auto loans and other installment loans. Having the income ability to repay debt is different than proving your intent to repay debt. High income producing borrowers don’t always pay their debts in a timely manner. The more positive credit history the better the loan scores.
- Job Stability is your ability to maintain employment for an extended period of time at the same company or related field. Most lenders like at least 1-year on the job and no more than three job within 2-years. Changing jobs frequently alarms most lenders. The longer the job stability the better the loan scores.
- Residence Stability is very similar to Job Stability. Most lenders like at least 1-year at your current residence and no more than three residences within 2-years. Moving around frequently alarms most lenders. The longer the residence stability the better the loan scores.
- Payment-to-Income (PTI) is calculated by dividing your auto loan payment by your gross monthly income. For example, a loan payment of $500 per month and gross monthly income of $3,500 equates to 14% PTI. Most lenders do not want your PTI to exceed 15-20%. The lower the PTI the better the loan scores.
- Debt-to-Income (DTI) is calculated by dividing your total monthly debt payments (including the new auto loan payment) by your gross monthly income. For example, total monthly debt of $1,500 and gross monthly income of $3,500 equates to 43% PTI. Most lenders do not want your PTI to exceed 45-50%. The lower the DTI the better the loan scores.
- Loan-to-Value (LTV) is calculated by dividing the total auto loan amount by the value of the vehicle. For example, a loan amount of $15,000 and a vehicle value of $17,500 equates to 86% LTV. The lower the LTV the better the loan scores. A very low LTV (50-60%) can decrease the risk of the auto loan to a point that the lender will overlook the other underwriting factors. LTV plays a huge role in determining the interest rate on auto loans, especially nonprime and subprime. The chart below shows a nonprime approval on a used ’17 F-150 with a value of $46,725. The interest rate varies from 6.54% to 9.99% based on LTV.
Types of Income
- Employers report employee wages, tips, bonuses and all qualifying compensation using IRS Form W-2. The employer becomes responsible for collecting and filing all appropriate state, federal, and social security taxes. Lenders that require proof of income usually want a computer-generated pay stub with year-to-date (YTD) earnings dated within 30 days of contract date.
1099 or Self-Employed
- Self-employed or independent contracts are required to report all wages and compensation to the IRS using Form 1099-MISC. Lenders that require proof of income usually want the most recent 3 months of personal bank statements, or a completed 4506T form.
- Foster Care, Child Support, Adoption, and Alimony are acceptable forms of income. Lenders that require proof of income usually want a copy of an official signed court document and 3 month of personal bank statements/court receipts showing actual receipt of payment.
- Supplemental Security Income/Pension/Permanent Disability Benefits/Annuity/Other Retirement Benefits are acceptable forms of income. Lenders that required proof of income usually want a current benefit letter proving the stated income or the most recent bank statement showing a direct deposit amount and source of the deposit.
- Military income and Veteran Affairs (VA) Benefits are acceptable forms of income. Lenders that required proof of income usually want a copy of a current Leave and Earning Statement (LES). Active duty military income is usually based off the total amount listed under the Entitlements section, minus any advance pay, clothing allowances, or other bonuses. National Guard and Reserves income is calculated off the base pay. We require either direct verification with the VA office (800-827-1000) or copy of a current bank statement with proof of deposit. VA benefits usually require a copy of a current bank statement with proof of deposit or direct verification with the VA office.
- Rental income, secondary jobs, and temporary jobs may be an acceptable form of income. However, each lender has different minimum requirements and acceptable proof of income stipulations.
Leasing versus Buying
Is it better to lease or buy? It depends. Leases and loans are two different ways of financing vehicles. Leasing finances the use of a vehicle; the other finances the purchase of a vehicle. Each has its own benefits and drawbacks. No one can simply say that one is always better than the other because it depends on your own situation and preferences. You must not only look at the financial comparisons but also at your own personal priorities what’s important to you.
You should consider leasing, if you’d like to drive a new car every two or three years, prefer lower monthly payments, drive under 12,000 miles per year and want to avoid paying for any major repair work. However, you should think about purchasing your next vehicle if you like to keep your car for longer than three years.
Leasing typically offers significantly lower payments than buying. One of the main lease factors that determines your monthly payment is residual value. For example, if you lease a car that costs $20,000 with an estimated residual value of $13,000 after 36 months (65%), then your payments are based off the $7000 difference (depreciation). If you buy the car your payments are based off the entire $20,000.
Types of Consumer Auto Loans
Sign & Drive
- Bayou Ford has several prime lenders that only require your signature and auto insurance! Your excellent credit file speaks for itself. These lenders do not require tax returns, pay stubs, proof of residence, and other stipulations other lenders need prior to approving your loan.
Zero Cash Down
- Bayou Ford has several lenders that do not require cash down. Your down payment is completely up to you! We can also use a new car rebate and/or a trade-in as a down payment.
High LTV Advances
- Bayou Ford has several lenders that will finance up to 140% of the new vehicle’s value. These loans help customers with negative equity in their current vehicle.
- Bayou Ford has several lenders that offer financing to customers with no prior auto credit. These lenders usually require proof of income and no major derogatory accounts on your credit bureau. Ford Credit has an excellent first-time buyer program with very low rates.
- Bayou Ford has a few subprime lenders will allow you to open a new auto loan with an open bankruptcy with an approval letter from the courts and/or trustee to incur new debt. Most other lenders require Chapter 7 or Chapter 13 bankruptcies to be fully discharged from the court before opening a new auto loan account.
No Credit / Bad Credit Score
- Bayou Ford has several lenders that overlook your credit score. These lenders favor residence stability, employment stability, and income stability over credit score. Down payment and favorable deal structure also help these types of loans score very well with lenders.
Types of Business Auto Loans
Business Name Only
- If your business qualifies for financing without the owner’s guaranty, you can obtain financing in the business name only. This gives you the ability to save your personal credit for other use. In addition, you can build credit in your business name and protect yourself from liability related to the operation of the vehicle.
Business Name + Third-Party Guaranty
- You can buy or lease vehicles in the name of your business but need to secure additional financing, you may act as a guarantor. This allows you to keep your name off the title and may keep the debt off your personal credit record. Keep in mind, if your business defaults, you may become liable and the debt may be reported on your personal credit record.
Commercial Line of Credit (CLOC)
- Businesses can build their fleet of vehicles while managing their total portfolio under one account. Other CLOC benefits are consolidated billing, rate locking, and it expedite the financing/paperwork process.
Specialty Vehicle Financing
- Commercial vehicles with upfits kit such as a service boy, crane lift device, towing equipment and other specialized equipment are included in one loan.