Financing Options?

[cboggs]

I better decide quick because my ranger showed up to the dealership! Photo from my brother:

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[stringbreaker]

Hmmm . Post reply in my reply.

Well @stringbreaker , I couldn't find anything on the information you provided. Would you be so kind to provide this information to us members.

In retrospect I couldnt find it either so I put my cart before my horse. Apologies rendered

 

[CORNGR29]

Typically, there are not "special rates" available on new launches through the OEM captive. Prevailing bank rates are 5-6% right now, depending on credit and term of course.

 

[DMC]

Your rule of keeping the term short makes sense if your only option is to finance the purchase. For those of us choosing whether to finance or pay cash, the more important thing to consider is whether the interest on savings/investments is higher or lower than loan rates. When I’m earning more interest in savings than I’m paying on a loan then I’ll finance big purchases for as long as possible.

Just don't forget to take into account that your savings is going to hit you with a 1099INT at the end of the year and that you are going to owe taxes on the amount that you earn on that savings account. Adjust earnings rate to the real interest rate according to your tax bracket for a fair comparison.

 

[wlarsen76]

lol it’s that kind of thinking why people pay so much in interest.
My rule is never do more than 36 months, and always pay it down sooner.
It’s crazy to think some people are taking 5-7 years to pay off just a car

Just an observation. I read chogg's post and thought... "Yea, me too".
Except I thought he meant that he cared most about total interest paid for the loan. The lower the rate, the lower the total interest paid. Obviously assuming that the rates are lower with shorter terms, though I've never really seen rates go down in the other direction.

 

[wlarsen76]

Just don't forget to take into account that your savings is going to hit you with a 1099INT at the end of the year and that you are going to owe taxes on the amount that you earn on that savings account. Adjust earnings rate to the real interest rate according to your tax bracket for a fair comparison.

Unless of course the investment vehicle lasts longer than a year, in which case it would be 15% (Long-term Capital Gains only after whenever sold)

 

[mperezkr]

rough guestimate on high interest savings on the 65k vs paying off the car cash.

cash buyers:
_________________________________________
65k cash after 36 months at 5.06% APY (CIT bank) = $10,374.69 total interest earned. after 25% tax fee = 7,780

best case:
4.5% loan from navy fed for 36 months = $4,608 interest paid on 65k loan

positive cash $3,172 saved from investing that cash instead.
__________________________________________

65k cash after 60 months = $18,195.60 after tax $13,647

decent case:
7% loan for 60 months = $12,225 interest paid

positive cash 1,422 saved

 

[Cyder]

I better decide quick because my ranger showed up to the dealership! Photo from my brother:

Raptor? Congrats!

 

[Cyrusblack]

you can probably get 0% for 72 months at ford motor credit if you have a high score

Probably . . . usually doesn’t work out for me

 

[jdlapointe]

It doesn't look like there will be any financing deals for the ranger. I can get an xlt high powerboost for 55k 1.9% for 72. I may actually opt for that as my xlt is 45k. The different in interest is pretty substantial.

 

[mperezkr]

It doesn't look like there will be any financing deals for the ranger. I can get an xlt high powerboost for 55k 1.9% for 72. I may actually opt for that as my xlt is 45k. The different in interest is pretty substantial.

For a 2024? from ford?

 

[jedadiah]

For a 2024? from ford?

Ford is offering 1.9 for 72 on the '23 F-150 that are still available.

 

[Viporpa]

I would be really curious if anyone finances through ford credit on what rates they will offer you when you go to pickup your truck. Good or bad credit and from 36 to 72 months. They should give you that info for all months. They have for me on the last 2 fords i purchased.

 

[jdlapointe]

For a 2024? from ford?

2023 only, and it looks like they are selling fast. I did pull the trigger yesterday. Pretty sweet truck for the price, and with the 360 degree camera, parking isn't to bad.

 

[DMC]

2023 only, and it looks like they are selling fast. I did pull the trigger yesterday. Pretty sweet truck for the price, and with the 360 degree camera, parking isn't to bad.

Congrats!!!

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