How is everyone financing these pricey trucks?

[4thTimer]

I guess  I'm in a bit of a minority here. I'm putting zero down unless I get a good bit better trade in on my 2yo van than just selling it outright.  My credit score is way high because I take a lot of cred but always pay my bills.  My credit union is doing about 2% for 72 months. Anything under 5% is almost free money. I filled out a car loan app with them only as a what if to see what options I could afford and stuck in a high amount. I just wanted to see if they'd give me that much. Well, I must have checked a wrong box or something because 2 days later I got a FedEx from them with a check for $95k.  Unfortunately, the check was only good for 60 days and my truck hasn't come in yet so I'll have to redo it later but it's a nice feeling to be able to snap my fingers and the djini delivers.

 

And yes, I love getting 0% interest for 18 months cash advance credit card offers.  Pay the 3% fee and max the card out with advances.  Pay the minimum payment for 18 months and then pay it off keeping some profit. 

[420Brady]

I plan to finance....great credit but worried about rate hikes upcoming if fed raises rates!

[psmith79]

On 3/15/2022 at 11:08 AM, 420Brady said:

I plan to finance....great credit but worried about rate hikes upcoming if fed raises rates!

The Fed is only raising rates by .25% at a time. It is the 10 year treasury note that really matters when we talk interest rates.

[winkzoot]

On 3/15/2022 at 11:08 AM, 420Brady said:

I plan to finance....great credit but worried about rate hikes upcoming if fed raises rates!

 Heard the Fed approved a rate increase today.   

[YODA]

I always pay cash. I set up a separate savings account with auto deposit and make payments to myself every month. I adjust the payment syearly  based on cost that year.  When it comes time to get a new one I write a check for the balance after the trade-in and any discounts like X-Plan and private offers.

[4thTimer]

"I have accountants pay for it all....Life's been good to me so farrrrr."

[CBears]

3 hours ago, YODA said:

I always pay cash. I set up a separate savings account with auto deposit and make payments to myself every month. I adjust the payment syearly  based on cost that year.  When it comes time to get a new one I write a check for the balance after the trade-in and any discounts like X-Plan and private offers.

I do the same exact thing only the bank account doesn’t have my name on it. ?

[bpete12]

Planning on writing a check after my trade in of only be 15-20k depending on how many miles I put on it between now and then.

[Montana85]

Put as much down as you can and go with a shorter term if possible. Typically the shorter term you go the better the rate you will get. Its still painfully high payments with the price of these new trucks but at least you won’t pay as much interest.

[CodyH]

cash here too. But this is company money. I do own the company but still I don't want to. If I were to finance some of it I would use an equipment loan from my bank and wrap up trucks plus all accessories and take the tax write off in a single calendar year.

[nickqw14]

I have my current truck paid off which thanks to the crazy used market is selling for around 50-55K (paid 44K for it 5 years ago). So I will be putting that down and financing the rest, roughly 35-40K giving me a reasonable payment. 

[cc121]

With the small bump in the prime rate from the fed is anyone seeing higher interest rates on auto loans? It seems like the HD trucks they assign higher rates to anyway. I’ll be putting a large down payment since I sold my lemon F-350 last year and also got a settlement check from Ford on it. The bummer is I’ve been without a truck since last year when I ordered the ‘22.

[NH_Bulldog]

We got a rate of 4.5% and they gave us crazy money for our F150, so we went with a 4 year note.

 

As far as rates go up, and how fast it is happening;  In October we refinanced our 30 year mortgage (we were 2 years into it) from a 4.5% rate to a 15 year 2.25% rate.  The rate this morning is right at 5% for a 15 year and a 30 year is approaching 7%.  Things are moving fast, and I would suggest locking in a rate now if you can.

[Dr-Bear-PhD]

I was planning on a 50% downpayment on my 2022 F450, and financing the balance over 3 years, but the interest rates being so unfavourable have pushed me to decide on a full cash payment for the truck.

[wowens79]

I’m paying cash, I’ve been making payments to myself for years.  My thoughts on the idea of financing to keep money invested is that if the economy tanks which it will at some point.  Then you are in the situation where you may get laid off, or your business is really slow, and you have to make that truck payment.  Then you maybe in the situation of having to sell stocks when the market is down 20%, that is when I want to be buying.   But having been laid off in the past, having no truck payment was a good feeling. 
Different people have different ideas, and risk tolerances.