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How is everyone financing these pricey trucks?


lisadsayre

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I am just curious as to how everyone is planning on financing these luxury trucks?  Even with my decent sized down payment, I will still probably be looking at an 84 month term loan.  I am not of retirement age yet, but this will be the vehicle that I keep into my retirement .  Never in my wildest dreams did I ever think I would spend this much money on my dream truck, yet here I am, lol. 

Edited by lisadsayre
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Cash baby! 84 months is a long time to finance anything tho. I would try to dial that back if you can. I might finance with PenFed just to hold onto some cash tho. I haven’t decided. It’s going to be a game time decision. Always pay it off early if you can. Make extra principal payments. These trucks aren’t going to stay priced like this for that long. 

Edited by ardvark666
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Cash for me as well. I paid cash for my current truck so I have that to put toward it. With these crazy values lately it's currently worth more than I paid for it, so that will help reduce the cost to upgrade. 

 

I've had many auto loans over the years through my credit union but I'm not eager to take out another one.

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We keep our vehicles for a LONG TIME.  This was a special purchase and when I mentioned to our financial planner that I was going to pay cash, 1st words out of his mouth after he asked what our interest rate was, said If I can't make you 2%, you need to fire me!

 

Credit union even wrote it up as 72 months, I said no, I want 48 months, period.  Poor wife is freaking out about the payments, and I said we were going to pay cash.  We compromised, in the savings account we added 1 years worth of payments, and she's currently making double principal payments out of our current income.

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Agree with low apr above.  Make sure you are comfortable in savings or being right side up if you have to borrow and ever needed out for any reason, duration doesnt hit very hard with rates below 3%.  Like captainkopper above, i will be financing about 60% of my truck at about 2.5%. Rak320 has a very good rate kinda jealous of that.

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I bought within my means (nicest truck I have ever bought, but mine is not classified as luxury, as many of you guys have)...could have paid cash but doing some calculating and decided not pulling the full amount of truck out of bank.

 

I bought xlt, cost was 54000 after all discounts and fees/taxes ect.

 

I put 27k down financed 27k @2.1% for 5 years payment is 475..I pay 1k a month...will have paid off in about 2 years. The interest paid is minimal compared to what I can make off of 27k more at my disposal...

 

If you make money with money then paying cash for everything is not the best way to do it unless you have massive reserves. If your money does not make more money and it just sits there and you have great savings then cash is best. But more reserves = more income.

 

Everybody's finances are different. Some have millions in savings, some have hundreds of thousands some have tens of k's, some have thousands, and then some retainer to retainer/paycheck to paycheck.

 

Everyone here has a different life story and different levels of income and savings. Some don't finance squat and have everything paid for but have no reserves....others bank it all and there are an infinite number of side roads people are on between or around those. 

 

It all depends on how much you make and how you plan, spend and save.

 

I would love to have a king ranch or limited or even better a Hennessey SD, but that takes to much money away for me to make more money....I can't justify it. I am a working man with a small side business and need to be very careful with my spending.....

 

So you have 3 types of consumers.

 

1. Can afford it with no worrys. (No income for years and need little or no change of lifestyle)

2. Can slowly pay for it with hopes that life does not throw a curve ball. (Maybe few months of no income till they feel the pinch)

3. Can't afford it, (just a few weeks of no income will severely hurt them).

 

But one thing I have observed over the years....you can NEVER judge a book by its cover, the story inside may or may not correspond.

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Will likely use our local credit union since they are under 2% after putting about 1\2 down with a trade-in.  I'm not usually a fan of financing either, but it's not hard to earn more than 2% in any savings\investment account.  Would be nice if Ford had 0% offers for having everyone wait so long! 

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I bought a 2002 Chevy new, and paid it off in 2006.  I’ve been making that $400 a month payment for the last 15 years into saving/investments, and will pay cash.  That dang Chevy just keeps on going with no issues, and makes it hard for me to pull the trigger. 
I like to say I prepaid for my truck, makes people realize you don’t have to be rich to pay cash, but just make the payments before you buy it. 

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A Large down payment that came from selling a few other vehicles including my previous truck left me with a comfortable payment on a 60 month term. I plan to pay it down/off much sooner then that anyways. For me Its trying to strike a balance between investments and my hate for vehicle payments. ?

I never planned to buy a new truck at all, but with the market on used vehicles going crazy I seized the opportunity. I also plan for this to be a long term truck for me. A buy once cry once move.

Edited by mattdm
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Not to be contrarian but there are clearly a lot of different types of buyers out there. I am not trying to shame people who finance. This is the internet so I'm quite sure that there are also people on here who aren't actually buying one of these trucks. Some people pay for cars as a household expense. Many people actually. Saving your cash for years is no different than spending it as a payment. If you have a low rate you can just look at the interest as a cost of doing business. My wife is financing her Acura but the payment is low so it really doesn't impact us. I think as long as you can pay for it comfortably you are going to be fine. I also think that if you finance everything, you have a problem. And never lease!, unless you love paying for someone else's depreciation. I think if you are fortunate enough to be able to order a brand new SD, you are winning at life. But as my wife says "if you want something, get money".

Edited by ardvark666
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10 hours ago, jstapleton said:

Will likely use our local credit union since they are under 2% after putting about 1\2 down with a trade-in.  I'm not usually a fan of financing either, but it's not hard to earn more than 2% in any savings\investment account.  Would be nice if Ford had 0% offers for having everyone wait so long! 


This is my philosophy as well.  I will be able to earn way more by investing what these trucks cost versus paying cash outright, even though I just made money on my previous truck, which I will use some as a down payment and finance the rest at a low interest rate.  

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33% down, financing the rest at 1.99% and making extra principle payments.  Would've liked to pay cash, but I'd like a new trailer soon and the financing terms on trailers are less than desirable to say the least.  So I held onto my cash for that and chose to make the payments on the truck instead.

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