Monthly Payments?

[sotek2345]

You should do some reading on Ford Options, which is a combination of payments for 3 or 4 years followed by a balloon payment. This gives you lower monthly payments if you need them, then at 3 or 4 years you either refinance the balloon or pay it off or hand in your keys.

Even with Ford Options, the payments on a $70 or $80,000 truck, with current interest rates, are very high.

Ford options was great on the Mach-e, mainly due to the rates and incentives offered. However, Ford isn't offering any incentives on the Lightning and the rates are much higher (4.9% being the lowest). You can do much better with traditional financing.

I am very disappointed because Options was such a deal on the Mach-e. We used it.

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[RickLightning]

Ford options was great on the Mach-e, mainly due to the rates and incentives offered. However, Ford isn't offering any incentives on the Lightning and the rates are much higher (4.9% being the lowest). You can do much better with traditional financing.

I am very disappointed because Options was such a deal on the Mach-e. We used it.

It's interesting. Ford's initial demand of the F-150L was in a very different time. The reality is that many will finance this vehicle over 7+ years because they can't afford it otherwise. And, with no incentive, and the tax credit soon to reduce and then be gone by the end of next year for Ford, this may be a very different game in a year.

I am mostly glad that I didn't make the cut to order a 2022 F-150L. Getting a $60,000 Mach-E with 0.9% financing still generates a $1,200 payment a month on 4 years. I would never finance at the type of rate that now exists for 7 years. 4.9% for 7 years on $80,000 is payments of $1,127 and $14,664.43 in interest. Contrast that with my $60,000 Mach-E, 4 years at 0.9% with total interest of $1,108.97. Yikes!

I predict within 18 to 24 months there will be a lot of repossessions or people dumping them because they cannot afford them.

 

[YankeeCP]

Straight cash homie ?

 

[LightningShow]

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.

Why is a 36 or 48 month loan any better?

 

[RickLightning]

Why is a 36 or 48 month loan any better?

The point being made is that a vehicle is a depreciable asset. Old rule of thumb is that in year 1 a vehicle loses about 20% of its value, then 15-25% each following year. Therefore, on a long-term loan like 7 or 8 years, you're "underwater", owing more than the vehicle is worth for a large part of its life. With a 3 or 4 year loan, you're not for much.

 

[XLT Jeffy]

National average of Canadian auto loan interest rates are 4.5%-10.5%. Ford here in Vancouver is at 5.99%. I'll be paying cash.

 

[sotek2345]

The point being made is that a vehicle is a depreciable asset. Old rule of thumb is that in year 1 a vehicle loses about 20% of its value, then 15-25% each following year. Therefore, on a long-term loan like 7 or 8 years, you're "underwater", owing more than the vehicle is worth for a large part of its life. With a 3 or 4 year loan, you're not for much.

That depreciation rule doesn't apply to low supply high demand vehicles.

 

[RickLightning]

They won't be low supply high demand for more than maybe 3 years of a 7 year loan at most.

 

[sotek2345]

They won't be low supply high demand for more than maybe 3 years of a 7 year loan at most.

That is why I would plan to trade in 3 to 4 years. I tend to go through vehicles too fast.

 

[Skidrowe]

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.

 

[sotek2345]

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 why I traded my 2016 XLT for a Raptor back in January. Figured it would be nice to drive one for a bit before the Lightning and would hold it's value better.

 

[VTbuckeye]

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.

I agree. I have a 2017 Tacoma with 10k miles. Build week 8/29. It is used mostly on the weekends. I don't want to put dirty bikes inside the other cars and can't tow the boat home from the lake (late October) with the other cars. I'd like to get top dollar for the Tacoma it but going without a truck is not going to work.

 

[salamito]

I am going to do traditional financing since Ford Options is out of the picture.
As soon as my dealer tells me on the VVR that it's on it's way I will get a loan approval thru my CU.

Looking at $800-$900 / month on my Lariat:

Best lease calculator around:
https://leasehackr.com/calculator

so if i get a 2023 pro it would be much less. and it sounds like leasing is dumb with this vehicle at the moment.

 

[metroshot]

so if i get a 2023 pro it would be much less. and it sounds like leasing is dumb with this vehicle at the moment.

Yup, leasing is not advantageous with the crazy high rate and no incentives.
Usually I lease to avoid paying full sales tax on the entire vehicle and if I like it, I will buy it out at the end of the lease.

Financing my Lightning with a trade in that is also stupid crazy inflated!

 

[salamito]

Yup, leasing is not advantageous with the crazy high rate and no incentives.
Usually I lease to avoid paying full sales tax on the entire vehicle and if I like it, I will buy it out at the end of the lease.

Financing my Lightning with a trade in that is also stupid crazy inflated!

nice! alright! got it! Thanks! Sounds like that will be the plan. Thanks!

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