Financing
Believe Nothing
Joined: Jun 2004
Posts: 7,513
Likes: 394
From: W. Central FL.
The last three new Fords I bought was with Ford finance incentive of $500. to $1000. credit, just to finance thru Ford credit. Ford credit rates were competitive but since I pay the vehicle off in three months, the rate means very little. Consider financing with Ford and then finance with someone else after three months. At least check this option, the only reason I write this. The option may or may not be available at this time or at all times. I think three months is the time you have to keep the loan thru Ford for the selling dealer to get the commission with no loss. I felt I was treated fairly with all three purchases so I kept the financing in effect for the three months as the gentlemanly thing to do.
Edit: Frantz should comment on availability or not at this time.
Edit: Frantz should comment on availability or not at this time.
Post Fiend
Joined: Apr 2004
Posts: 5,158
Likes: 35
From: North of Salt Lake City
My dad always had great advice for these situations. He said, "If it doesn't appreciate or educate, don't borrow for it." I'm grateful he taught me in a way that I tended to take his advice rather than rebel or dismiss it. That simple advice has saved me many tens of thousands of dollars in interest and many instances of buyer's remorse. I've since added a couple of questions to that which don't necessarily apply to borrowing and that's, "Is it worth it? and Can we afford it?"
When I'm honest with myself, it really doesn't matter how much a thing costs as long as it provides value in excess of the money paid for it. But when I factor in the second question, something might be worth it but I simply can't afford it. In such a case I have to take a pass. Exercising wisdom beyond our emotional years is difficult but always pays huge dividends.
When I'm honest with myself, it really doesn't matter how much a thing costs as long as it provides value in excess of the money paid for it. But when I factor in the second question, something might be worth it but I simply can't afford it. In such a case I have to take a pass. Exercising wisdom beyond our emotional years is difficult but always pays huge dividends.
More Turbo
Joined: Jan 2017
Posts: 633
Likes: 42
It might be "normal" today... but then take a look around you.. historically, no, because it's bad finance.
Keep in mind a lot of financial transactions are perfectly fine for people who have lots of disposable income. What the sharpies have done is package up these deals for people who have no business doing them. The housing market was a classic example.
If one can afford to simply write a check for a truck, borrowing instead can still make sense simply because interest rates are low, and it avoids tying up money, and if worse comes to worst, simply pay off the note and be done with it.
On the other hand If you CAN'T really afford the truck, then a 5 or 7 year note means yer STUCK with it, because it will depreciate faster than it is being paid off. If something happens, and you have to sell, you'll have to pay the difference, which will be substantial. Oftentimes people will then trade it in, even though they are far underwater and start the cycle all over again. Thousands of dollars get vaporised this way.
Financial advisors recommend a three year note. Divide the price of the vehicle by 36 months, if the monthly nut is too high for you, it's too much truck. The point is don't just look at how much you CAN borrow, or how much they'll let you bite off, because it will likely be way more than you can chew.
Keep in mind a lot of financial transactions are perfectly fine for people who have lots of disposable income. What the sharpies have done is package up these deals for people who have no business doing them. The housing market was a classic example.
If one can afford to simply write a check for a truck, borrowing instead can still make sense simply because interest rates are low, and it avoids tying up money, and if worse comes to worst, simply pay off the note and be done with it.
On the other hand If you CAN'T really afford the truck, then a 5 or 7 year note means yer STUCK with it, because it will depreciate faster than it is being paid off. If something happens, and you have to sell, you'll have to pay the difference, which will be substantial. Oftentimes people will then trade it in, even though they are far underwater and start the cycle all over again. Thousands of dollars get vaporised this way.
Financial advisors recommend a three year note. Divide the price of the vehicle by 36 months, if the monthly nut is too high for you, it's too much truck. The point is don't just look at how much you CAN borrow, or how much they'll let you bite off, because it will likely be way more than you can chew.
Postmaster
Joined: Jun 2014
Posts: 2,775
Likes: 7
From: Lewisberry, Penn
For retail sales, 72 months is short term these days. Obviously you're better off going short term. At our shop we show everyone 48 months first and the payment shock has them begging for 120. 60 months is uncommon, less than that and you're pretty much a cash customer.
The good thing is, the cars last longer with fewer issues, but it's still a bunch of interest you're going to be paying. If the rate is the same, and you can discipline yourself, you can do 72 months and pay it off shorter by have the flexibility for a cheaper month. Being commission myself, that's what I do.
The good thing is, the cars last longer with fewer issues, but it's still a bunch of interest you're going to be paying. If the rate is the same, and you can discipline yourself, you can do 72 months and pay it off shorter by have the flexibility for a cheaper month. Being commission myself, that's what I do.
Laughing Gas
Joined: Jan 2010
Posts: 817
Likes: 23
Here is a simple rule. It's called the 20/40/10 rule.
Make a down payment of at least 20%
Finance the loan no more than 4 years
Don't exceed 10% of your gross income for the principle, interest and insurance
My target goal is 20% down, payoff in 3 years or less and don't exceed 5% of your gross income for principle, interest and insurance.
Don't have a truck mortgage!
Make a down payment of at least 20%
Finance the loan no more than 4 years
Don't exceed 10% of your gross income for the principle, interest and insurance
My target goal is 20% down, payoff in 3 years or less and don't exceed 5% of your gross income for principle, interest and insurance.
Don't have a truck mortgage!
Post Fiend
Joined: Apr 2002
Posts: 19,311
Likes: 97
From: Waterloo, Iowa
Wow so just because u can't just write a check or pay off in 36 months a fellow in your opinion CAN'T afford it . It's a good thing for ford and others who produce big ticket products that the majority of consumers CAN'T afford, with out taking out loans go ahead and do just that, most blue collar folks like me and the vast majority of consumers don't have financial advisors or Deep Pockets, so us poor Folk got to barrow.
"Us poor folk got to borrow". Maybe, but nobody is twisting your arm to borrow more than you can afford.
That's why people stay poor!
Listen to somebody like the Dave Ramsey show for a few weeks. Listen to the stories from the folks who call in. Everyone who is in deep financial **** got that way by borrowing, almost without exception. Too much house, too much car.. Then they go bankrupt, lose the car, lose the house, etc. It happens all the time.
Now it is true that banks and finance companies are willing to lend to folks who can't afford to pay it back. I don't think they are doing anyone any favors. Those boats don't pay for themselves though, know what I'm sayin'?
Postmaster
Joined: Jun 2014
Posts: 2,775
Likes: 7
From: Lewisberry, Penn
$40k truck out the door, that'd be $8k down, financing $32k. At 48 months and 0% that's the devils payment $666, so $6666k income a month? $80k a year just to play by your rules. That's sorta crazy.
Edit: To be fair, that's why I drive a Fiesta and you drive the nice trucks on your sig line.
Edit: To be fair, that's why I drive a Fiesta and you drive the nice trucks on your sig line.
Senior User
Joined: Nov 2016
Posts: 220
Likes: 0
I went in with a pre approval from my bank at 2.75% for 5 years (large down payment). Dealer searched their lenders and hooked me up with a good credit union for 2.25%. I think its good to go in prepared, but my dealer has always got me a better rate than what I have gone in with.
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More Turbo
Joined: Jan 2017
Posts: 633
Likes: 42
It's not my opinion, it's just the way it is. "Never borrow money to buy a depreciating asset." Don't get pissed at me for pointing out the obvious.
"Us poor folk got to borrow". Maybe, but nobody is twisting your arm to borrow more than you can afford.
That's why people stay poor!
"Us poor folk got to borrow". Maybe, but nobody is twisting your arm to borrow more than you can afford.
That's why people stay poor!
Thread Starter
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Elder User
Joined: Jan 2017
Posts: 575
Likes: 1
All these stories are scaring me lol.
I mean in my situation. I have a car and land payment no house yet because I have yet to build.
I make 2818 a month give a little. I made 61k gross last year.
if I put 10 down and got 7 for my trade my payment would be 718 a month - right now my payment is 609.
Besides insurance and truck payment I have a 500 note I pay on some land I just bought and don't plan on building a house for about 4 more years.
So im thinking if I did 72 months I'd be on the safe side as far as having my truck paid off 2 yrs into building a home. And I'll have that 718 freed up. ( take into account my extra cash and taxes checks will be put into paying off the truck too )
im just giving you guys some info on my situation. I have a gasser but have always wanted a diese and feel like if I was to get one - then now would. Be the best time as opposed to when I have a mortgage.
I mean in my situation. I have a car and land payment no house yet because I have yet to build.
I make 2818 a month give a little. I made 61k gross last year.
if I put 10 down and got 7 for my trade my payment would be 718 a month - right now my payment is 609.
Besides insurance and truck payment I have a 500 note I pay on some land I just bought and don't plan on building a house for about 4 more years.
So im thinking if I did 72 months I'd be on the safe side as far as having my truck paid off 2 yrs into building a home. And I'll have that 718 freed up. ( take into account my extra cash and taxes checks will be put into paying off the truck too )
im just giving you guys some info on my situation. I have a gasser but have always wanted a diese and feel like if I was to get one - then now would. Be the best time as opposed to when I have a mortgage.
Senior User
Joined: Sep 2016
Posts: 250
Likes: 0
All these stories are scaring me lol.
I mean in my situation. I have a car and land payment no house yet because I have yet to build.
I make 2818 a month give a little. I made 61k gross last year.
if I put 10 down and got 7 for my trade my payment would be 718 a month - right now my payment is 609.
Besides insurance and truck payment I have a 500 note I pay on some land I just bought and don't plan on building a house for about 4 more years.
So im thinking if I did 72 months I'd be on the safe side as far as having my truck paid off 2 yrs into building a home. And I'll have that 718 freed up. ( take into account my extra cash and taxes checks will be put into paying off the truck too )
im just giving you guys some info on my situation. I have a gasser but have always wanted a diese and feel like if I was to get one - then now would. Be the best time as opposed to when I have a mortgage.
I mean in my situation. I have a car and land payment no house yet because I have yet to build.
I make 2818 a month give a little. I made 61k gross last year.
if I put 10 down and got 7 for my trade my payment would be 718 a month - right now my payment is 609.
Besides insurance and truck payment I have a 500 note I pay on some land I just bought and don't plan on building a house for about 4 more years.
So im thinking if I did 72 months I'd be on the safe side as far as having my truck paid off 2 yrs into building a home. And I'll have that 718 freed up. ( take into account my extra cash and taxes checks will be put into paying off the truck too )
im just giving you guys some info on my situation. I have a gasser but have always wanted a diese and feel like if I was to get one - then now would. Be the best time as opposed to when I have a mortgage.
Thread Starter
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Elder User
Joined: Jan 2017
Posts: 575
Likes: 1
You mean claim more on my taxes? Like dependable? Im
unsure on a lot of that stuff still. New to it all.
I can however exempt pay checks checks which I did twice one year and broke even but keept 3k checks in my bank account
unsure on a lot of that stuff still. New to it all.
I can however exempt pay checks checks which I did twice one year and broke even but keept 3k checks in my bank account
Senior User
Joined: Dec 2016
Posts: 353
Likes: 0
Postmaster
Joined: Jun 2014
Posts: 2,775
Likes: 7
From: Lewisberry, Penn
Honestly if you're making $60k, getting a new diesel truck is probably a poor choice. I make $60k, and while I know I don't have to drive a fiesta if I didn't buy so many old cars and tractors, I would not be buying a diesel for the fun of it. The warranty only lasts so long, and then the repair bills CAN be 1/4 of your annual income.
Putting your "extra money" by not withholding is all well and good, but where are you gonna get your money to pay your taxes then? Edit: Sorry, I read "refunds" as "withholdings". Yeah tax refunds mean you set it up wrong.
Not that you can't get it or can't afford it, but I think you should really really consider if a new diesel truck will fit your budget without cramping your lifestyle.
Putting your "extra money" by not withholding is all well and good, but where are you gonna get your money to pay your taxes then? Edit: Sorry, I read "refunds" as "withholdings". Yeah tax refunds mean you set it up wrong.
Not that you can't get it or can't afford it, but I think you should really really consider if a new diesel truck will fit your budget without cramping your lifestyle.