Some advice for a first time financing?

[MFNG]

I would finance as much as you can at the lowest rate you can find, keep the cash and buy guns an ammo with it. If we read the tea leaves falling out of Brandon's pant leg, your truck debt may be just a drop in the bucket compared to what that truck may be worth on paper in a year or two.

But, that's none of my business.

1000%.

 

[1BAD454SSv2]

When you get in Finance office keep saying no to everything . If you want extended warranty look at Flood Ford . Print everything out and tell them to match them . Nitrogen in tire is bull crap the air you breathing is 80 percent nitrogen . Just keep saying no .
Put your vin# in, choose the coverage you want . https://www.floodfordesp.com/

 

[Frank N]

If you’re paying an ADM and you have to finance, I’m not financial advisor but that purchase doesn’t sound like a great idea…

 

[maxr]

If you’re paying an ADM and you have to finance, I’m not financial advisor but that purchase doesn’t sound like a great idea…

Depends on your investment strategy. Ex. If you can borrow the money at 2% and keep the purchase amount in the financial market, the probability of making more then 2% annualized over 5 years is pretty good.

 

[cdiddy4224]

@cdiddy4224 what rates are we talking about here?

1.99% up 72 & 84 if you have 730 or higher.

 

[Frank N]

Depends on your investment strategy. Ex. If you can borrow the money at 2% and keep the purchase amount in the financial market, the probability of making more then 2% annualized over 5 years is pretty good.

I said if you 'have to' finance. Big difference.

I took a four year note on half just because I wasnt clearing out most of my rainy day fund and I wasnt paying cap gains on taking money out of the market. not to make a few hundred buck a year on interest deltas. FTS.

And you give a more than a third to the Govt in taxes, if one makes 10%, govie take 4%, 2% for interest....you are left with what, $1000 a year on a 50k note? Maybe, depends on the risk returns. Again. FTS.

 

[Mountain Man]

The ESP is worth taking out. It covers stuff the warranty doesn’t. It’s saved me over $2400 on two repairs, faulty harness to injectors and failure of both seat heating elements.

 

[Broken Wrench]

yup, instead of buying it outright, I financed 27k, had my credit approved already but I told the dealer if they could beat it, I would go with them, dealer came back just over 1.7% apr on a 5yr. with BofA. rather than taking all the money out of savings, I chose to borrow some at the low rate and keep the rest invested at 6-8%. Or you could tell the dealer if they come back at a great rate, you might finance some of it, otherwise I'll just write a check, that will usually get a best effort from them. I didn't want a huge car payment, small one ok. As long as you pay MSRP or below, let your money work for you, it's like getting more discount on the vehicle, the money you make off of the investment above the loan rate is just gravy, bacon gravy, and who doesn't like that!
On the flip side, anything above MSRP is throwing money away and if you can afford to do that, congratulations you are much wealthier than most people, it's your money spend it as you choose, but if that is the case, then you should not be financing anything, that would be a very bad financial move, financing ADM is really a very bad idea, in my opinion.

 

[AxelR]

1.99% up 72 & 84 if you have 730 or higher.

Doesn’t look like a better rate than 1.49% for 65 months (starting at 680 credit score I believe) but if someone is looking for long terms then why not.

 

[Badgertits]

Personally…..I was same as you, hate bills….esp big ones for big toys. On other hand depreciating asset & low rates. On other other hand I’m on gen2 #2 & MADE $$$$ on my 2018 totaled w/ 40k miles & 2+ years owned, already ahead of the game on my 2020 w/ 18k miles bought new for MSRP same dealer offered me $3k more than I paid for it lol

I took out loan for $10k @ 2.5% w/ BOA (this is last year) didn’t shop around too much b/c wasn’t financing much. After having 3 vehicles totaled in last 7 years (******** deer & distracted drivers) I now think it’s a good idea to finance some small portion of the purchase price, in case you’re in a vehicle that doesn’t hold its value better than 95% of everything else out there or sh*t hits the fan again (which…..as we well know could happen)

That being said I think a credit union is where you’ll probably get the best rate, or just keep poking around online until the bots give you an offer you can’t refuse lol