Interest Rates ?

[Scotty piffin]

For the record I was not trying to be preachy or give anyone investment or retirement advice, but I can comfortably say that I have a pretty good grasp on the logistics of car purchases as someone who does it for a living especially for a brand where the purchase has a lot more financial considerations given the price point and also the financial aptitude of the customers i deal with. Since covid the process of buying a car has changed substantially and I’m not talking about regards to the discounts or lack their of. The way it is paid for has changed a lot, I went from a business that was about 85% leases to about 20% leases and more people paying for cars in full then I have ever seen in ten years prior. I would assume all of us on here are going to be making a car purchase in the near future given the purpose of this forum, was just looking to give insight since I am in a unique position. Many people buy a car once every three years if leasing or much less frequently if financing, I am involved in this stuff daily so just wanted to offer perspective since I’ve seen a significant shift in the ways cars are paid for in the past two years. Also from my experience a lot of people don’t do car payment math prior to walking in to buy the car and it can be shocking to see the actual amount of interest you are going to pay with rates being where they are so that’s why I sent the quotes before, I just think it’s good to be aware of what’s going on if you haven’t bought a car since before covid. It’s a drastically different landscape

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[Wayfaring Ranger]

Also from my experience a lot of people don’t do car payment math prior to walking in to buy the car and it can be shocking to see the actual amount of interest you are going to pay with rates being where they are so that’s why I sent the quotes before, I just think it’s good to be aware of what’s going on if you haven’t bought a car since before covid. It’s a drastically different landscape

yep and regardless of all our advice this is really the most important takeaway.

everyone here should be using a tool like this

https://www.calculator.net/auto-loan-calculator.html

with their specific parameters to get a good estimate of what you'll pay over the full term because the guy at the ford finance desk doesn't want you to realize the loan you're agreeing to ends up being 1/4th of the car's total value in interest payments

 

[rwolfcastle]

This whole discussion is probably moot if you're getting a Raptor at MSRP. Even if you're paying $10k in interest, chances are you'll either break even or be on top when you go to sell it anyway.

 

[Craneop1972]

yeah but more or less you can see this in terms of when your signing your paperwork…you will see the price of the truck.. the dealer issued add ons the dealer service fee, the TTL and all that.. it makes since on this matter… a dealer is out to make money.. not just sell a truck or car and not make money on it.. that’s how a business stays running…

Like for me… I saw my full breakdown on my RR I ordered… on top of the $5k mark up I have on the truck there is a standard $500 dealer service fee that’s on all their vehicle sales… plus the cost of the vehicle itself which is the same as my tag I put on order similar to the ford website… so yeah I can see why… but idk anything in terms of seeing a 1% mark up… maybe it’s just not my dealer.

There’s what’s called a “buy rate” and a “sell rate”. Look into it, do some research on the subject. Also for your dealership to add a $5000 ADM to your truck, which they didn’t even have a allocation for to begin with, only insures that your dealership will stick it too “you” anyway they can.
The previous comment on your post was only using the 1% markup as an example, lots of times it’s more than that, and most if not all dealers do it.

 

[Sevokevo]

There’s what’s called a “buy rate” and a “sell rate”. Look into it, do some research on the subject. Also for your dealership to add a $5000 ADM to your truck, which they didn’t even have a allocation for to begin with, only insures that your dealership will stick it too “you” anyway they can.
The previous comment on your post was only using the 1% markup as an example, lots of times it’s more than that, and most if not all dealers do it.

hey! This is the guys I talked to a few months ago on Facebook right? I can’t see your page or name anymore on messenger to talk to you… some things have changed here in the past 2 weeks… get back in touch with me so I can give you the load down… I am busy at work right now so my hands are bit tide

 

[Cyrusblack]

You still want a loan for a car, it's a depreciating asset. Paying cash for something that will depreciate is never, ever a good financial decision. No financial advisor will ever tell you paying cash for a new car is smart.

Inflation guarantees that borrowing money benefits you in the long run (assuming you can pay the loan without problems). However there's a balance of loan term and knowing what you're comfortable with paying per month. Stretching your loan to 8 or 10 years isn't smart, either because you get hosed on interest.

The last poster's advice is good. Keep the loan at 4 years, put a down payment to get the monthly where you feel comfortable.

My rule of thumb is never pay cash unless you can afford to pay cash. Cash is King

 

[NigelPeloquin]

Yeah, that’s kind of weird that they’re holding off on giving you numbers until your truck arrives. I had a similar situation when I was looking at financing options for my F-150 last year. It felt like they were making me jump through hoops just to get an idea of the rates. I ended up using allcalculators.net to help get a rough estimate of what I could be looking at based on different terms. It’s not specific to Ford, but it gave me a good ballpark while I waited. I guess it’s possible they wait to finalize it based on your credit score and the truck details, but having some general info upfront would definitely help.

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