84 month Financing,Crazy?
Fleet Mechanic
Joined: Jun 2011
Posts: 1,865
Likes: 34
From: Annandale, VA
84 month is fine as long as you're doing it because the other uses for your money will guarantee you a better rate of return after taxes. Any other reason to me sounds like the truck is not affordable (which they can be if you overbuy). I financed the last two trucks for 36 month terms and paid them in 24. Mostly did that to bolster the credit rating.
84 months pretty much guarantees you'll be upside down on the loan at least for the entire duration of your warranty. I just can't imagine being in that position if life sells you some lemons and requires you to get out of the truck.
84 months pretty much guarantees you'll be upside down on the loan at least for the entire duration of your warranty. I just can't imagine being in that position if life sells you some lemons and requires you to get out of the truck.
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Fleet Mechanic
Joined: May 2006
Posts: 1,376
Likes: 12
From: Illinois
84 month is fine as long as you're doing it because the other uses for your money will guarantee you a better rate of return after taxes. Any other reason to me sounds like the truck is not affordable (which they can be if you overbuy). I financed the last two trucks for 36 month terms and paid them in 24. Mostly did that to bolster the credit rating.
84 months pretty much guarantees you'll be upside down on the loan at least for the entire duration of your warranty. I just can't imagine being in that position if life sells you some lemons and requires you to get out of the truck.
84 months pretty much guarantees you'll be upside down on the loan at least for the entire duration of your warranty. I just can't imagine being in that position if life sells you some lemons and requires you to get out of the truck.
Post Fiend
Joined: Apr 2002
Posts: 19,311
Likes: 97
From: Waterloo, Iowa
Absolutely one will be under water with an 84 month note. Thosands of $$ disappear as soon as it is driven off the lot - but the debt remains, and so does the interest on that debt. Nice work if you can get it. Not buying more than you can afford gives you options if things were ever to go sideways for whatever reason.
The law of supply and demand applies to money, and credit too. Cars would be a lot cheaper if more people paid cash. If the only thing keeping car makers in business is running Americans into bankruptcy, hell let 'em die now, it's only a matter of time. Wages have been stagnant 40 years now, and today both parents (if there even ARE two parents) have to work to make ends meet, back in the day only dad worked. Moms were expected to stay home with the children, as society then had antiquated, backward ideas such as women were better mothers, goofy stuff like that.
The law of supply and demand applies to money, and credit too. Cars would be a lot cheaper if more people paid cash. If the only thing keeping car makers in business is running Americans into bankruptcy, hell let 'em die now, it's only a matter of time. Wages have been stagnant 40 years now, and today both parents (if there even ARE two parents) have to work to make ends meet, back in the day only dad worked. Moms were expected to stay home with the children, as society then had antiquated, backward ideas such as women were better mothers, goofy stuff like that.
More Turbo
Joined: Oct 2005
Posts: 563
Likes: 71
From: Garner, NC
I go 60 months and then set up my payments so its paid off in about 42 months. But if I fall on a hard month, I can resort back to the lesser payment or if really needed, I can skip a payment because I'll be so far ahead. Right now, my next payment is not due until August 15. But I'll make my next payment around June 1 just like normal.
Posting Guru
Joined: May 2003
Posts: 1,666
Likes: 4
From: Sunny tourist infested FL
Took the Ford money to finance with them. Flipped the loan as I always do. I ended up flipping it once more from credit union to credit union. The last flip they gave me 1.05% apr on a 60 month loan. Put enough down so my payment are low. I also make half the payment twice a month. That helps with the interest and reduces the principle a little faster.
More Turbo
Joined: Oct 2017
Posts: 562
Likes: 45
I would never go 84 mo, 72 mo is my limit. But, since new vehicle prices are steadily increasing, the car industry will need it to keep selling vehicles. I never imagined I'd ever buy a truck with a sticker over $70k. But new car prices are going up faster than most peoples salary, especially the ones that car shop by payment.
Senior User
Joined: Mar 2018
Posts: 125
Likes: 1
I would never finance something that I don’t have the cash to pay 100% cash for. That being said, I financed my 450 Limited because I got 1.9% financing for 48 months and my money is making over 10%, so would be dumb to pay cash. I financed 100% of it without putting a dime down. Felt kind of weird driving a ~ $95k truck off the lot without having to make a payment for 45 days ha
Mountain Pass
Joined: Dec 2017
Posts: 142
Likes: 23
From: Southeast Wisconsin
To me, the rate is far more important than the term. I would happily do a 10 year loan if the rate was right.
Also so keep in mind that cars these days last a long time. Especially the diesel.
Also so keep in mind that cars these days last a long time. Especially the diesel.
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Fleet Mechanic
Joined: Apr 2015
Posts: 1,641
Likes: 507
From: Phelan CA
The only problem is you don't want to be upside down on a vehicle. The longer you finance, the larger chance you will be stuck owing more than the truck is worth. You also carry liability of payment longer, if the economy dips. (which it will).
I've found 5 yrs with 20% down driven 15k a year leaves a comfortable margin with these diesel trucks; ie the vehicle is paid off yet has substantial residual value.
Anybody that is spending this amount of money should do a cash flow diagram to see where you'll be and what you will be paying out.
I've found 5 yrs with 20% down driven 15k a year leaves a comfortable margin with these diesel trucks; ie the vehicle is paid off yet has substantial residual value.
Anybody that is spending this amount of money should do a cash flow diagram to see where you'll be and what you will be paying out.
Fleet Mechanic
Joined: Feb 2018
Posts: 1,592
Likes: 204
Depends on the rate, as some have said. I’d finance mine a million years if I could get 0%. The 36 month “rule” made sense when interest rates were 7% on that term. Low rates are one of the things that drove vehicle prices up, just like what happened in the housing market. It also seems like vehicles lose value slower today than they did 10, 20 years ago. I say “seems” because I haven’t seen any real data on this.
Junior User
Joined: Feb 2018
Posts: 89
Likes: 0
From: Rockford, IL
84 month is fine as long as you're doing it because the other uses for your money will guarantee you a better rate of return after taxes. Any other reason to me sounds like the truck is not affordable (which they can be if you overbuy). I financed the last two trucks for 36 month terms and paid them in 24. Mostly did that to bolster the credit rating.
84 months pretty much guarantees you'll be upside down on the loan at least for the entire duration of your warranty. I just can't imagine being in that position if life sells you some lemons and requires you to get out of the truck.
84 months pretty much guarantees you'll be upside down on the loan at least for the entire duration of your warranty. I just can't imagine being in that position if life sells you some lemons and requires you to get out of the truck.
I would respectfully disagree with the being upside down on the loan part. My trade was paid for and worth $29,000 on a $65,000 purchase. I took out a 72 month note,( first time ever usually only 36-48) just to have a lower payment. I too will be switching over to my credit union and making double payments when I can. Just because people take out long term loans doesn't mean they aren't putting some serious money down, I hope. I know there is some serious depreciation on vehicles however I hope my '17 350 psd is worth more than $36,000.
Mountain Pass
Joined: Dec 2017
Posts: 142
Likes: 23
From: Southeast Wisconsin
I never understand why people care about being upside down. That only matters when you sell/trade it.
Stop connecting the truck and the loan. I have a couple of loans, and I have assets. I only keep loans that are lower than the return I can get on my money.
The richest company in the world keeps a ton of debt, even though they have truckloads of cash.
I”m actually going to sell my current house and move to a cheaper area. I’ll have enough cash to pay off everything and pay cash for a new house, but that doesn’t make financial sense for me.
Stop connecting the truck and the loan. I have a couple of loans, and I have assets. I only keep loans that are lower than the return I can get on my money.
The richest company in the world keeps a ton of debt, even though they have truckloads of cash.
I”m actually going to sell my current house and move to a cheaper area. I’ll have enough cash to pay off everything and pay cash for a new house, but that doesn’t make financial sense for me.
Posting Guru
Joined: Jan 2011
Posts: 1,352
Likes: 4
84 month is fine as long as you're doing it because the other uses for your money will guarantee you a better rate of return after taxes. Any other reason to me sounds like the truck is not affordable (which they can be if you overbuy). I financed the last two trucks for 36 month terms and paid them in 24. Mostly did that to bolster the credit rating.
84 months pretty much guarantees you'll be upside down on the loan at least for the entire duration of your warranty. I just can't imagine being in that position if life sells you some lemons and requires you to get out of the truck.
84 months pretty much guarantees you'll be upside down on the loan at least for the entire duration of your warranty. I just can't imagine being in that position if life sells you some lemons and requires you to get out of the truck.
Four years later and I could sell my truck for $30k more then what I owe.
Fleet Mechanic
Joined: Jun 2011
Posts: 1,865
Likes: 34
From: Annandale, VA
I would respectfully disagree with the being upside down on the loan part. My trade was paid for and worth $29,000 on a $65,000 purchase. I took out a 72 month note,( first time ever usually only 36-48) just to have a lower payment. I too will be switching over to my credit union and making double payments when I can. Just because people take out long term loans doesn't mean they aren't putting some serious money down, I hope. I know there is some serious depreciation on vehicles however I hope my '17 350 psd is worth more than $36,000.
I'm sure folks who bought houses in Vegas during 2004-2006 had similar thoughts when they made purchases. I'm not saying the economy will collapse tomorrow, but for me, I only make purchases I know I can easily back out of or walk away from with no financial hardship. I won't be signing any 84 month car loans unless it truly is 0-1% and I'm not trading any rebates for the lower interest rate.