Some advice for a first time financing?

[Raptorial]

Thanks y’all for all the info, definitely learned some things here. Before I get into anything though, just wanted to let everyone know my ADM was only $5,000. I also actively invest the majority of my money and rarely blow my paycheck.

For the ESP I think I’ll definitely go with Flood Ford or at least tell my dealer that and see if they can match. For extended warranty I’ll give it a think and only budge if I can really get a good offer on it. Seems like Ford gives a good factory warranty and by the time it fails, my money today could have doubled by then (invest).

I think I’ll also check out some of the credit unions mentioned here and try getting pre approved once it’s clear the truck will be at the dealer soon and negotiate the dealer with those rates. 1.75 from BofA sounds pretty nice.

Lastly i just wanted to say that financing a vehicle, even if you can purchase it outright, makes sense to me because the sh**ty credit bureaus actually cap your credit score in the 700s due to “lack of recent reinstallment/loan information”. In my case I’ve never gone into the 800s because of this (never have had outstanding balances, went and actually spoke with credit bureau people from all three). When i asked how to bring it up they said the only way was by getting a loan, even though I don’t really need it (what a wonderful thing!!). So a smaller loan that i pay off overtime will bring that up and help me with mortgage rates when i go to buy a house. I actually have enough money to purchase the vehicle outright and my salary would certainly help me there too. Not trying to be rude but for all those suggesting to “not finance ADM” sure I get that if I’m financing the whole truck but I’m already paying the, 78,985 - 30,000 = 48,985, up front.

Sorry that last chunk was not so nice but thanks again everyone for the advice!

I would own a house before owning an $80k truck. Revolving credit can help your score when you go to buy a house. Financed vehicles generally do not. Especially if the monthly payment is high

 

[PandaBoi]

Might want to buy ESP this year before rate goes up.

Ooo thanks for the heads up, I can buy it even without actually owning the truck yet? My eta is 01/24/22 which we have no idea if it will actually arrive then.

 

[PandaBoi]

I would own a house before owning an $80k truck. Revolving credit can help your score when you go to buy a house. Financed vehicles generally do not. Especially if the monthly payment is high

That’s a very fair piece of advice. I plan to buy a house in the next few years however where I live (Dallas) just got hit with a massive surge in home prices. Just like in Austin, this is all thanks to a certain group of people moving from a certain state to ours and offering 60k over asking on any home in the area. I actually was looking at houses before the raptor idea but gave up because it seemed foolish to buy when houses are at an all time high. I’m planning to wait till an amazing deal comes up or until the crash happens and the prices drop. And it’s not like I don’t have money invested that I could use to purchase a house when that happens.

Although your point is solid. If so many Cali guys/girls weren’t ruining the market, I would have definitely bought a house since that is a much more solid move. I feel more comfortable still paying rent to the nice guy I’ve known for years and hasn’t gouged me even in these crazy times than buying a house right before a potential crash at it’s all time high. I could be wrong though.

I am sad to hear that finances vehicles can’t help build your credit though. That goes against what some financial advisors have told me so I’ll look into that.

Edit: sorry y’all I feel like I’m writing out essays here but I appreciate everyone responding!

 

[GCATX]

That’s a very fair piece of advice. I plan to buy a house in the next few years however where I live (Dallas) just got hit with a massive surge in home prices. Just like in Austin, this is all thanks to a certain group of people moving from a certain state to ours and offering 60k over asking on any home in the area. I actually was looking at houses before the raptor idea but gave up because it seemed foolish to buy when houses are at an all time high. I’m planning to wait till an amazing deal comes up or until the crash happens and the prices drop. And it’s not like I don’t have money invested that I could use to purchase a house when that happens.

You might want to chat with a good local real estate agent, not one that is your wife's sister or cousin. I'm in Austin and in the industry, and I listen when people say things. The exodus from other states coming here is not going to end soon. And, if the crash happens, it's not a sure thing that prices will go down around here and Dallas, as people are still going to migrate away from states that already had 1 foot in the s h i t t e r.

As far as an "amazing deal" coming along, there are a ton of hungry agents that have buyers lined up that scour for deals all day and all night. Unless you're looking for a real fixer upper in the boonies, you may get lucky or you may be waiting a long time. In 1-2 years that fixer upper could be selling for the price of a decent ready to move into home this year.

Over the past several years there has been an assumption that the market would slow at some point, but nobody told the out of state buyers that. Some investors liquidated last year because they thought the market was topped out. Well, those guys missed out on 40-50% equity growth over that time. Will we see another 40-50% increase next year? Nobody knows, but I wouldn't bet a pile of money against it.

Facts are, the lockdowns and taxes in other states have driven up property values in the free states. At least one of those 2 reasons is likely not going to change.

 

[rrjreyes12]

I would advise you to make a loan amortization table/schedule. Play around with down payment amount, interest rate, and loan terms - to really see how things play out.

But if you can secure an interest rate less than your return rate in stocks/bonds/crypto/NFT then finance as much as you can. Money is better spent on investing than trapped in a car - per se

BUT for all that is holy, and this goes for you and everyone here. PLEASE contribute to retirement. Sucks working now. Would suck more working past 65.

 

[WKUSMC]

Hey y’all,

So my raptor is currently sitting on the infamous ramp 51 and supposedly is off microchip hold according to my zone rep but my dealers tracking system says it’s still on a microchip hold which is probably the case. Hopefully it will get here soon but eta is still 01/24/2022.

Anyway, since it might come soon I was hoping to receive some advice from anyone here on best practices, tips, and tricks when financing a vehicle. Until now I’ve always just paid in full for my vehicles so I’m very new to this. I think I’m planning on going with a credit union because my credit score is great (750+) and they seem to be one of the few that can offer rates as low as 1.75%. Im not sure what the best rates are from ford but I think they are around 3-5%.

I plan to purchase the Ford PPM service plan since I’ve heard from others it’s really worth it. I also may get an extended warranty but wanted y’all’s input as well. I know these two and GAAP insurance are sometimes required by credit unions so that’s a win win.

For me I plan to finance about $30k-$35k of the vehicles total cost. The rest would be paid for upfront (TX reg & tax, service plan, extended warranty, and the remaining cost on the vehicle). I am purchasing the vehicle out of state in Nebraska (I live in Dallas) so that may make financing a little more complicated.

Anyway, any help/advice is greatly appreciated. Looking super forward to getting the truck and hope it gets here soon! Best of luck to everyone else waiting

 

[Knightenno]

You guys are all just incredible; I've learned a lot of useful things for myself. I also recently thought that I would like to buy a car for myself and have been looking for as much information as possible lately. I have already found the service https://www.unicominsurance.com/motor-trade-insurance.php where I will make my insurance for an SUV; it remains only to find the car itself and buy it. If you have any advice for me as a new person in the field of buying cars and cars in general, I will be very happy to listen to you and very grateful if you write me something