Monthly Payments?

[metroshot]

Hopefully the used car market holds up at these insane levels for 6 more months. Then my 45k mile 2014 F-150 should fetch me $25k or more as a decent start on the Lightning. After that and a sizeable down payment, any monthly loan payments I have on the lightning should be palatable.

That's what I am doing too.

BTW - nice striper there! @Skidrowe

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[heelyeah]

No judgment here, but if you're not already aware of the availability of online payment calculators and haven't already determined approximately what sort of payment you'll be in for, you might not be ready to commit to this kind of transaction. Again, no judgment here, but you don't have to rely on anecdotal evidence of what other folks are paying per month to determine what your payment would be. Just google "auto loan payment calculator" and plug in the numbers!

 

[bryan995]

84 month loans . Just crazy. Prolly shouldn’t buy a vehicle if you can’t pay it off in 36-48 months. Gonna be underwater on it at 84 months for sure.Just my 2¢. But to each their own.

With a low interest loan (<1.5% or so), I would gladly take out a 200 month loan if they would let me.

Inflation eats away at your payment every single minute of every single day.... The bank absorbs the loss. Same argument for now paying cash, I could, but why would you unless the interest rate is >6%-ish.

 

[Yellow Buddy]

With a low interest loan (<1.5% or so), I would gladly take out a 200 month loan if they would let me.

Inflation eats away at your payment every single minute of every single day.... The bank absorbs the loss. Same argument for now paying cash, I could, but why would you unless the interest rate is >6%-ish.

I am in the same position. However, that assumes you keep the car for that period. And you can afford the payment.

There’s too many folks who take a 8 year loan, but only keep the car for 3. They then roll the negative equity into their new loan ending up upside down on their brand new car.

 

[Skidrowe]

That's what I am doing too.

BTW - nice striper there! @Skidrowe

Thanks! I think it's a largemouth. They're fun to pull out of the ponds around my house using perch as bait.

 

[hturnerfamily]

we can all argue and discuss the validity of what we 'think' is the best way for anyone to 'finance' a vehicle, but the reality is that no one is in the same boat, or truck, and no one situation is the same, regardless of whether the financial numbers are exactly the same, or not. There will be many who finance a truck that shouldn't. There will be many who will pay cash, because they can, and don't care about whether the low 'interest rates' seem to make that a ridiculous choice. Some folks just want to pay for something and be done with it, regardless of what everyone else deals with when it comes to 'how' they are going to finance a purchase.
Some will lease, because it's a cheaper entry, while others will do the same because they know that in several years there will be a better vehicle in the market. Some will finance with a very large downpayment, while others will struggle just to provide the minimum downpayment, regardless of the interest rate.

We can use calculators to provide a base for our decisions, yes, but the personal choice between two different buyers can be amazingly disparate - one may finance simply because it's the normal choice when making a large purchase, and others may because it's the ONLY way to afford any type of new purchase, while someone else does it simply as a hedge against other inflationary or interest-driven models.

Sleeping easily at night sometimes is more important than saving a dime. Sometimes having a set payment is better than not knowing what the next year holds. Sometimes paying cash and being done with it allows you to sleep better at night, no matter whether rates are low, go lower, or the value of the truck goes down.

I've worked with many folks over the years about finances, savings, investments, and even the included debt repayments and how someone choose to pay for what they need, or better, what they WANT, which is generally the conversation. Few of us ever actually have a NEED, it's mostly what we want.
This truck is not a need, it's a desire. Desires come last in the line of financial needs analysis and equations, but sometimes we make it out to be the CENTER of our universe.

I can't wait for mine, either. Maybe I'll pay cash. Maybe I'll finance with a big downpayment. Maybe I'll finance with the lowest downpayment and suspect that maybe I'll trade up in several years. Really, until I make that decision, when the truck is actually here, we'll not be so sure yet.

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