.....good luck man 
Credit checks
Posting Guru
Joined: Jul 2008
Posts: 1,250
Likes: 1
If you don't have the scratch to buy outright a good rule of thumb is to never finance more than three years. Take the price and divide by 36 - if you can't afford that it's too much truck. Don't forget to include insurance and registration costs fuel and oil in your calcs. Just sayin'.
I financed the entire purchase of my '13 FX4, however I set my budget at what I could afford in 3 years if my employment limited me to 40 hours per week (hourly wage earner, normally working 50-60/wk) and my wife didn't have a job (currently employed). However, I was able to get a the same interest rate on a 63 month loan as I would have on the 36 month, so I've got a minimum payment of a 5 year loan (much lower than the 36 month) so if I lose my job/times turn tough I can still afford to make payments, but I'm currently making payments large enough to pay off the truck in the 3 year time-span.
Super Moderator
Joined: Jan 2008
Posts: 40,019
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From: Maine, Virginia
well according to the finance lady at ford, my credit is good but not good enough ( I am 22)for fords low 3.9% rate. Correct me if I am wrong but does the dealer make money off the interest rate or is that just what the bank gets?
So ford suggested getting something used then down the road when my credit is better get what I want
Was your truck bought new Tim?
I am looking at a 12 eco screw fx4 right now for 35k CAD, has about 69 thous kliks nissan dealer said he cant do any better than 5.29% for me. I like the truck but the interest he quoted me isn't tickling me in a good way. They said 275 biweekly for 84 months, im not sure how the interest is compounded I'll have to find that out. And there is no penalty for early lump sums he said. It also seems like it has a slightly rough idle
Now for extended warranty, nissan wants me to ofcourse go through them. But from what ive read on here I can look up a discounter and go that route for fords ESP, would I also be able to do this with FMPP?
The finance lady at ford also had told me they'd get the best rate and discounters didnt have the right warranty, pretty sure she was just blowing smoke, really just making me less inclined to deal with her
So ford suggested getting something used then down the road when my credit is better get what I want
Was your truck bought new Tim?
I am looking at a 12 eco screw fx4 right now for 35k CAD, has about 69 thous kliks nissan dealer said he cant do any better than 5.29% for me. I like the truck but the interest he quoted me isn't tickling me in a good way. They said 275 biweekly for 84 months, im not sure how the interest is compounded I'll have to find that out. And there is no penalty for early lump sums he said. It also seems like it has a slightly rough idle
Now for extended warranty, nissan wants me to ofcourse go through them. But from what ive read on here I can look up a discounter and go that route for fords ESP, would I also be able to do this with FMPP?
The finance lady at ford also had told me they'd get the best rate and discounters didnt have the right warranty, pretty sure she was just blowing smoke, really just making me less inclined to deal with her
972/month, doable. I clear 4200 a month right now.
Realistically I want to build my credit to be able to be approved for a mortgage down the road, could I build my credit at the same rate with a credit card as with a vehicle?
I hear ya there my 93 f250 is by no means even comparable to this half ton, but its got four wheels and its paid for...plus its a 7.3 IDI it just won't die haha
Realistically I want to build my credit to be able to be approved for a mortgage down the road, could I build my credit at the same rate with a credit card as with a vehicle?
I hear ya there my 93 f250 is by no means even comparable to this half ton, but its got four wheels and its paid for...plus its a 7.3 IDI it just won't die haha
Don't get me wrong here but I feel that you're looking at too much truck. 25% of your income obligated just to a car loan is excessive in my mind. The only issue with your age is that you haven't lived long enough to create a more solid credit history. Credit is extended at more affordable rates based on past payment history, current obligations and current income.
Do you really need an FX4? Would an STX do the same job for you? Do you have a father who may be willing to help you negotiate the entire deal?
The statement about buying used is BS. Ford trucks especially are holding their values better than any truck on the road right now. A 2012 FX4 may sell for nearly as much as a 2014 XL or STX but will not have the benefit of any rebates, reduced warranty and will be much more profitable for the dealer than a new truck sale.
I'm far from being an expert and I may not even be the right guy who's advise to follow but it has served me pretty well.
Post Fiend
Joined: Apr 2002
Posts: 19,311
Likes: 97
From: Waterloo, Iowa
When young it's better to save and invest, than take on debt. At least on a vehicle. Imo, of course.
The credit score thing is kind of hard to pin down because they are cagey about how they figure it; but it involves debt repayment history, of course, and the ability to reasonably take on more debt. Then lots of other stuff like where you live, or how long you've lived at an address. One thing that used to get suggested was open up a Sears charge account; or maybe a local shopping card. Buy small items and make payments on time, etc. repeat. Also any other recurring charges that aren't paid are going to show up eventually. Skipping out on rent, phone bills, even movie rentals, It's going to eventually start bouncing around the system. The idea is to build a history over time, of prompt payment of debts. Why? So you can take on even MORE debt; silly!
Wait, what?
Anyway, never mind. But, when you go to buy insurance they will give you a discount for clean credit. And if you are applying for a job, a good score may help secure employment in fields where trust is important. In fact I'd say for a young person or couple starting out clean credit is at least or more important than college in terms of setting the stage for success later in life! Reason being it's so easy to completely ______ your life up for years with poor borrowing decisions. Ask me how I know.
The three years thing is due to the fact that vehicles depreciate so fast that a borrower never makes any headway on a 5 or 6 year note. As the principle value of the car goes down, and the loan extends out, he always owes more than the car is worth. Most people don't want to keep a car for ten years, so they try to "trade it in", and start the cycle over again, maybe worse. See where I'm goin' with that?
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The credit score thing is kind of hard to pin down because they are cagey about how they figure it; but it involves debt repayment history, of course, and the ability to reasonably take on more debt. Then lots of other stuff like where you live, or how long you've lived at an address. One thing that used to get suggested was open up a Sears charge account; or maybe a local shopping card. Buy small items and make payments on time, etc. repeat. Also any other recurring charges that aren't paid are going to show up eventually. Skipping out on rent, phone bills, even movie rentals, It's going to eventually start bouncing around the system. The idea is to build a history over time, of prompt payment of debts. Why? So you can take on even MORE debt; silly!
Wait, what?
Anyway, never mind. But, when you go to buy insurance they will give you a discount for clean credit. And if you are applying for a job, a good score may help secure employment in fields where trust is important. In fact I'd say for a young person or couple starting out clean credit is at least or more important than college in terms of setting the stage for success later in life! Reason being it's so easy to completely ______ your life up for years with poor borrowing decisions. Ask me how I know.
The three years thing is due to the fact that vehicles depreciate so fast that a borrower never makes any headway on a 5 or 6 year note. As the principle value of the car goes down, and the loan extends out, he always owes more than the car is worth. Most people don't want to keep a car for ten years, so they try to "trade it in", and start the cycle over again, maybe worse. See where I'm goin' with that?
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Thread Starter
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Mountain Pass
Joined: Nov 2012
Posts: 109
Likes: 1
Thanks for the info guys, ya after talking it over with my parents and brother and taking the advice on here I think I will save and start investing.
And in a few years buy my dream truck when I can buy more than half of it outright
And in a few years buy my dream truck when I can buy more than half of it outright
Posting Guru
Joined: Nov 2010
Posts: 2,043
Likes: 4
if you simply saved the $972 for 3 years you`d have $35,000 cash in hand.....pretty sure you`d be able to find a real nice `16-`17 f150 at that time....there you go 
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Mountain Pass
Joined: Nov 2012
Posts: 109
Likes: 1
I wonder if they'll be flying/hovering vehicles by then haha
Thats a good goal i personally think and something to look forward to
Post Fiend
Joined: Apr 2002
Posts: 19,311
Likes: 97
From: Waterloo, Iowa
It's just when young - people don't always listen to reason or experience. At least when people learn the hard way, it usually sticks. My parents tried, but... It's way more fun too, not just good business, to write a check or pay cash for something. Can get some great deals that way, never know when an opportunity will pop up that requires fast acting.
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