Financing a Raptor

[Marcs]

Can't believe how many finance a depreciating asset (even with historically low rates), and incredibly low down payments. Guess I was raised differently.

 

[sniperm]

Do they ask for pay stubs?? with all u high credit score guys?

 

[Fred]

Can't believe how many finance a depreciating asset (even with historically low rates), and incredibly low down payments. Guess I was raised differently.

I tend to agree, even with interest rates at all time lows, IMO part of the reason that ALL vehicle prices are high is because folks look at can I afford the payment, not the vehicle...

I read "it only cost $*** per month" well that does not include gas, tax, tags insurance, upkeep and maint., etc...

Does any really know what their Raptor costs them a month or a year to own and operate? My guess is, with an average payment of $600 per month, over a $1,000 or $12k per year...after tax $

I get it...credit is the American way and to each his own...

Now, if the decision is that since credit is so cheap, that is a great reason, but I would take this route, ONLY, if in a pinch you could/would pay of the note...

There is a thread in itself....What is the average cost to own and operate a Raptor for a year...

 

[Kevin S.]

credit check first!

Then they can talk numbers...

But most ppl get better rates at other banks.. like credit union or well fargo etc..

Yes this exactly! Also I check my score every month on creditkarma for free! It's a great free service, it also checks out every kind of credit score you can have.

I need to figure out why my interest rate is so high with my credit score. I wonder if it's because i'm looking at purchasing a used raptor?

 

[blockdoc]

I actually agree about not financing a depreciating asset, even though I did it.

But I'd say there are remarkably few people in my financial situation too, and I think each situation has to be weighed on its own merit alone. My income recently increased over 7-fold, and my truck will be paid off quickly.

So I financed, just because I've lived like a pauper for about 10 years and wanted to reward myself, knowing full well that it means it will cost me more money. Paying as I have scheduled will mean I pay an extra $1100. I'm ok with that, considering I needed to replace my daily driver, and I'll be able to pay the truck off so quickly. Even adding in the interest, I still paid under MSRP.

Financing a depreciating asset is indeed dumb. I don't think it's as bad, if you are able to say, "financing this vehicle means that I pay $*** more total to have it now, or it will be $*** less if I save this money instead".

 

[Reptar]

Nothing wrong with financing a depreciating asset. You should understand exactly as you said that you're paying X amount more by financing than paying in full, and put down a reasonable amount without streching yourself thin. It is stupid to have 20k of extra funds burning a hole in your pocket and financing with 0 down. But if there's something you want, and you can afford the amount (up front and long term), then nothing wrong or nothing stupid about financing to get it now rather than waiting 5-6 years.

Now what you do need to make sure of, is that you at least have enough equity paid so that it's depreciated value is greater than what you owe. If it's only worth 30k and you still owe 40k, if you get in an accident and it's totaled, you're still responsible for that 10k delta. One of my buddies got screwed with that. He must have done 0 down, had the vehicle a short period of time, wrecked it, and was 10k short on what insurance would cover for the value of the vehicle and what he still owed on it.

So you guys putting 0 down and getting 7 year loans, may want to look into gap insurance lol.

Financing a depreciating asset isn't stupid....unless you're upside down on the loan!

 

[Fred]

Nobody said it was stupid, in fact of done under the correct circumstances can be a powerful way to leverage one's financial resources..

---------- Post added at 09:19 PM ---------- Previous post was at 09:16 PM ----------

Greg, I say the like...jezzzzz....

 

[blockdoc]

Well, I said it was dumb. But apparently I didn't think it dumb enough to keep me from doing it.

 

[Fred]

Yeah Doc...and you know what you did and your reasons for doing it...so you made an informed decision and the opportunity cost of having your truck now...outweighed the benefit of waiting until you could afford to pay cash and you except the $1k cost for that convenience...

Fred

 

[Wilson]

the cash I have is making more in interest then the interest I'm paying in the short term lone I have.