35 VS. 37 = SUPPLY AND DEMAND.

[DFS]

Okay, let’s address supply and demand. Read the link! BTW,I realize everything in print isn’t the truth, but if like I have stated many times, prices are not coming down soon, if ever. If you want a new truck, ADM’s are here for a while, maybe forever. My neighbor owns an electrical company and said he has over 30 Ford trucks, most of which are 250’s. He said he recently purchased 3 more and paid a 5k ADM for each. He said it was a bargain because Joe Blow will pay 10+ for each. With so many on the forum indicating they paid, or are paying MSRP, I would love to see contracts posted. However, no harm no fowl, after my truck arrives and if the dealer keeps the 5k ADM as promised, I will post my contract. Things will get worse before they get better, bank on it!

Car prices remain high as Chinese-made semiconductor shortage keeps inventories low

Car prices are still inflated as dealerships struggle to maintain their inventories amid a shortage of semiconductor chips coming in from China.

www.foxnews.com

I would assume 30+ Ford trucks is close to qualifying for fleet incentives, so paying MSRP would be wasteful, and paying MSRP + ADM is ludicrous. I've not heard of ADM in Boise or anywhere in Idaho on non Ford Performance vehicles but maybe I'm just naïve. Either way your neighbor should look elsewhere for a dealer, there's dealers out west that sell plenty of 250's and 150's (especially XL, XLT, Lariat) with zero ADM.

 

[ME120]

I would assume 30+ Ford trucks is close to qualifying for fleet incentives, so paying MSRP would be wasteful, and paying MSRP + ADM is ludicrous. I've not heard of ADM in Boise or anywhere in Idaho on non Ford Performance vehicles but maybe I'm just naïve. Either way your neighbor should look elsewhere for a dealer, there's dealers out west that sell plenty of 250's and 150's (especially XL, XLT, Lariat) with zero ADM.

Someone who actually has common sense and recognizes the value of a dollar.

 

[K9 EXPERT]

That demands on how much enjoyment you get out of someone else carrying your luggage. For me personally, I'd rather carry my own luggage even it was free with no tip...but it makes some people feel special.

And FYI, you can have an opinion without blanketly calling anyone who disagrees with you an idiot.




There are a few problems with that plan though. One is that taking out a loan helps build credit. Probably shouldn't be buying a Rap if you don't already have good credit, but you generalized your statement to any vehicle.
Two, it's not uncommon for people to be able to get a better interest rate investing money than the rate on their loan. However, that would qualify as a 'want a loan' situation rather than a 'need a loan' so doesn't fully apply.

Related, there is inflation right now. If inflation is 5% and your interest rate is 2%, it's costing you more to wait till you have the cash then just buying now.

Third and most importantly, there is opportunity cost. If it takes you 3 years to save up the cash for a Raptor, that's 3 years you didn't get to enjoy a Raptor. Yes, delayed gratification matters, but so does get things sooner rather than latter. I have 3 vehicles right now...my Rap is paid off, and I have loans on my kids vehicles. I'm not telling them they have to wait till their 19 to get a vehicle (and shuttle them around to work myself) because I don't want to pay 3% interest on a loan.

Your post is dead on! I was referring to buying a Raptor on credit, not a Toyota. Please correct me if I am wrong, but there is no investment in concrete that will pay enough, when tax is factored, to overcome interest on a vehicle loan? The DOW is on a roll, but it isn’t in concrete. Due to my age, I do not have a ton of risk tolerance, but I am always looking at making a buck. I also never had kids, but I appreciate your perspective and it is valid. If a person earned $1000 in bank interest he would have to pay tax related to his tax bracket, mine is 33%. However, a long term capitol gain is only taxed at 15%…..typically. I get it and I hope you get my point. As another example, I bought my current primary residence 9/2019 when I could have gotten a mortgage at 2.7%. The fees associated with the mortgage was about $22k. I elected to pay cash and saved $22k on the spot. Although 2.7% is awesome….more than awesome, there is nothing currently without risk, after taxes are factored, that will beat paying cash. If I were 30, absolutely, with Biden in the WH, interest on a simple checking account may pay 10%. My bad, I should have realized, one size does not fit all. That said, nobody needs a Raptor, an XL will get a person for point A to point B, they just won’t look as cool!

 

[K9 EXPERT]

Your post is dead on! I was referring to buying a Raptor on credit, not a Toyota. Please correct me if I am wrong, but there is no investment in concrete that will pay enough, when tax is factored, to overcome interest on a vehicle loan? The DOW is on a roll, but it isn’t in concrete. Due to my age, I do not have a ton of risk tolerance, but I am always looking at making a buck. I also never had kids, but I appreciate your perspective and it is valid. If a person earned $1000 in bank interest he would have to pay tax related to his tax bracket, mine is 33%. However, a long term capitol gain is only taxed at 15%…..typically. I get it and I hope you get my point. As another example, I bought my current primary residence 9/2019 when I could have gotten a mortgage at 2.7%. The fees associated with the mortgage was about $22k. I elected to pay cash and saved $22k on the spot. Although 2.7% is awesome….more than awesome, there is nothing currently without risk, after taxes are factored, that will beat paying cash. If I were 30, absolutely, with Biden in the WH, interest on a simple checking account may pay 10%. My bad, I should have realized, one size does not fit all. That said, nobody needs a Raptor, an XL will get a person for point A to point B, they just won’t look as cool!

Sorry I forgot, you are paying interest on your kids cars so you don’t have to shuttle them around, that is a convenience cost, however, if you could, I assume you would have paid cash for their cars? Otherwise, please tell me where you can earn 5% on an investment without risk? 5% of 1000 is 50. If you’re in the 28% tax bracket you may realize $36……without paying on a loan. If you bought your kids a $10000 car at an interest rate of 2%, you would be plus 3%…….before taxes….however that 3% is taxed at you income bracket. You would be a few cents positive, but with inflation, you will probably be negative. The dollar is worth less everyday Biden is in office, I think it best to spend it now rather than later.

 

[GCATX]

Your post is dead on! I was referring to buying a Raptor on credit, not a Toyota. Please correct me if I am wrong, but there is no investment in concrete that will pay enough, when tax is factored, to overcome interest on a vehicle loan? The DOW is on a roll, but it isn’t in concrete. Due to my age, I do not have a ton of risk tolerance, but I am always looking at making a buck. I also never had kids, but I appreciate your perspective and it is valid. If a person earned $1000 in bank interest he would have to pay tax related to his tax bracket, mine is 33%. However, a long term capitol gain is only taxed at 15%…..typically. I get it and I hope you get my point. As another example, I bought my current primary residence 9/2019 when I could have gotten a mortgage at 2.7%. The fees associated with the mortgage was about $22k. I elected to pay cash and saved $22k on the spot. Although 2.7% is awesome….more than awesome, there is nothing currently without risk, after taxes are factored, that will beat paying cash. If I were 30, absolutely, with Biden in the WH, interest on a simple checking account may pay 10%. My bad, I should have realized, one size does not fit all. That said, nobody needs a Raptor, an XL will get a person for point A to point B, they just won’t look as cool!

Your checking account pays 10% interest?

Paying cash for a house is also ignoring inflation, which is right in our faces every day. You could find better things to do with all that cash. You saved 22k on the spot, but you gave up a lot more by doing so. If my instruments are correct.

 

[muffinman1604]

Same here. But I can give you at least 3 dealerships that I know of that will sell 35's for MSRP. The demand is low for 35's. Try to even find a review on a 35 package raptor. there are not many because nobody cares about them, everybody wants the " 37 package to boast their ego " .

Pm me those dealers?

 

[K9 EXPERT]

Your checking account pays 10% interest?

Paying cash for a house is also ignoring inflation, which is right in our faces every day. You could find better things to do with all that cash. You saved 22k on the spot, but you gave up a lot more by doing so. If my instruments are correct.

Please explain what I gave up? Beforehand I will stipulate that I still am very liquid and I probably will not be alive in ten years.

 

[K9 EXPERT]

Please explain what I gave up? Beforehand I will stipulate that I still am very liquid and I probably will not be alive in ten years.

I also wrote checking accounts may pay 10%……I wish mine paid that now

 

[GCATX]

Please explain what I gave up? Beforehand I will stipulate that I still am very liquid and I probably will not be alive in ten years.

Well then, you definitely should have gotten a 30 year mortgage with 3% down and rolled your capital gains into other real estate/projects that are tax sheltered. Then rolled in mortgage insurance to pay off the mortgage when you should pass.

No harm no foul, just an interesting conversation, I say that without regard to the troll that started the thread.

Things have changed a lot in the last year for sure.

 

[K9 EXPERT]

Well then, you definitely should have gotten a 30 year mortgage with 3% down and rolled your capital gains into other real estate/projects that are tax sheltered. Then rolled in mortgage insurance to pay off the mortgage when you should pass.

No harm no foul, just an interesting conversation, I say that without regard to the troll that started the thread.

Things have changed a lot in the last year for sure.

I forgot to stipulate that my wife has her own money and I am not worried about her Financial health. Consequently, like I have said in other threads, if I don’t spend it, the pool boy will. Yes, if I had kids that were losers and could not provide for themselves, my mind set may be different, but probably not. I’m not in that position, so I do not know. I plan to die broke, not in debt, just broke. On that note, I had a friend whom recently died and I remember him telling me that kids are entirely different than dogs. After a parent dies kids will fight over who gets what, conversely a dog will miss its owner long after the estate is settled. Food for thought!