Let's talk finances

[8WOOD]

1. If you make 100k a year and 100k in savings, why not just buy it outright and saved like 3000-5000 dollars in interest.
2. If you have great credit score, shop around for you loan. Once you pull your credit score for a vehicle, you can shop around for 3 weeks and have any bank pull your credit specifically for vehicle loans and it won't ding you for multiple hard checks.
3. If you have a credit score of 750 or above and historical background of large loans, you will be able to find 7 year loan below 1.5%. Most likely this will be found at a credit union.


4. I make 120K a year, my wife makes 60k, we own a home, and my credit score was around 800 when I took my loan out for a 2017 GT350. Ford wanted 5%, my bank wanted 3%, and several credit unions were between 1.00 and 3.00. I opted for a CU % that spreads an equal amount of interest across each payment of the loan. I picked this choice because i'll sell the GT350 within 2 years and that way I've payed much more of the principle. Standard financing practice is to load the interest loans at the start of the loan.

 

[mattkc]

If I want to build it and have it shipped to my dealer, they told me that will take 6-8 weeks. Is my best bet to apply for financing before or after I have finalized the build and order price?

 

[Deleted member 12951]

Go talk with a financial advisor.
Keep savings incase something happens. They typically say at least 8 months of your income for an emergency fund. So definitely only take out $30k. You mentioned nothing about retirement. At your age if you haven't put money into that, then you aren't thinking ahead. Assume paying rent to live, so giving away your money to a landlord (not the best way to build assets) unless you are living with Mom.

Only you and a financial advisor can help you with your question, not an Internet truck forum. And curious, what is a near perfect FICO score, 849?
I've been in the 840's. Having near perfect doesn't matter for an auto loan once you get it so high as they have a scoring and once you hit it, you get the best rate anyways.

 

[wheelman55]

Almost 25

Do not own a home

No debt at all

Expense to income ratio varies. Anywhere from 25%-50%, I would say.

MattKC. Congrats at having a nice income at your age.

Two (at least) schools of thought here. Buy what you want, when you want, with little regard for the future. Or...spend as little as possible, save/invest like crazy, retire young, with enough money saved to now buy your toys. Note that with the "save" scenario you can splurge on the occasional toy.

Instead of looking at just income, look at what you spend and what you save each year. If you are currently saving 25% or more, go ahead and buy your truck...however don't buy the Rolex, or the $10k in truck mods, at the same time .

In other words...you can buy one big item...just don't buy them all. Remember that this truck will be worth less as soon as you sign on the dotted line. A house (or a four plex) on the other hand will be worth more over time.

Income tax, rent/mortgage, food, health care, car insurance, entertainment, eating out, clothing, tools, travel, etc. will chew up $100k in a hurry. Be really careful with your discretionary spending. A wise man of your age should consider putting as much away now as possible.

Look up "Rule of 72". Also saving 50% of your income for 17 years will put you into retirement. In your case that would be before you turn 40.

Best.

 

[thump4863]

My advice is to never dump money into a depreciating asset. Put some down but finance the rest. Save your money in savings and earn interest by investing it in something that earns a return.

 

[pjones]

At 25 with 100k saved is pretty good. I will assume this is your own work and not a gift of some sort. Spend some of it and enjoy being 25. Finance the truck with some down.

 

[Fly5150]

Save your money. Put 0 down and make sure you have gap on your insurance. If you total your truck after putting 30k down, your getting a fair market value payoff. 20k is gone.


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[JetDriver480]

I am in your situation and I put down $37000 so my payment would be $500 a month. I can't remember how many years I financed but plan to pay her off in a couple years...

 

[duke92]

Another thought, when I bought my current F150 I walked in prepared to pay cash. The dealer shared that they had an incentive that you got cash back ($1000 I think) if you financed through ford credit. I asked what the minimum I could finance and how quickly I could pay it off and keep the cash. Answer was $20,000 min and 90 days in I could payoff without penalty. I borrowed $21,000 at the best rate they had through ford financing (around 5% if I recall). I made three payments of 7,000 and closed the loan. I think it cost me about $125 in financing and 30 minutes of my life filling out credit app but I got $1000 That I applied to the purchase.
As stated previously, Ford excludes Raptor from most incentives so I am doubtful such scenarios will apply. Never hurts to ask.

 

[RUFdriver]

My Raptor is going to be a toy, I like to pay cash for toys or I don't buy , just can't stand having consumer debt. Everyone is different, if I was going to daily drive it with no intention of keeping leasing is the way to go, if keeping for the long haul finance at the lowest rate and shortest term possible. 99.9% of new cars are depreciating assets the minute you're off the lot, only exceptions are ultra low production vehicles like a Ford GT or a GT3RS.