Was anyone else nervous before buying an S550?

[coltgus]

I would get a 5 year loan for around 2% and not pay it off early. These interest rates are extremely low, it could be in a couple of years savings accounts are paying 5%. I recommend Penfed credit union which anyone can join or Ford credit if they have a good deal. Barclays online savings account pays 1% right now. Make your car payments and put the extra payments you were going to make in the savings account. That way you will build up a rainy day fund just in case.

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[FranzVonHoffer]

Nervous about the payment is one thing. But I've paid cash for some pretty marginal vehicles before and I'll trade "payment" nervous over "get me to work without breaking down nervous" and I work on my own cars but the time becomes more important than the money.

However, my 75 year old mom still loves her 18 yo Mercedes so I own a new car but still have to wrench on her beast so the anxiety has not gone away.

 

[scott6809]

Here are my concerns...

First and foremost, making the payments long-term.

While I'm most likely going for a 5-6 year loan (to keep the required payments lower) I want to have it paid off in 2 years give or take. Currently, that's totally do-able. But if something totally unforeseen should happen...that means liquidating other assets or selling the car. No real way to plan for it, just makes me hesitant and a little scared.

The way I look at it, if you get a 5-6 year loan and can pay it off in 2 that's the way to go. That way if you have a rough month you don't have to make too big of a monthly payment.

With my F150, I pulled a 6yr loan and paid it in 3yrs, I was lucky that I didn't have any financial problems during the term of the loan and was able to stick to 3yrs.

On my Mustang I did the same thing, we'll see if I can do it in 3yrs, fingers crossed. The big thing that help me is not have more than 1 car payment at a time.

 

[Omega]

I had jitters to, but I had the dealer put almost another $20k in parts on it so my $40k mustang really cost 60.

The only reason I did it was because I was able to put down enough to basically pay off all the extras and more. So I basically have a normal car payment.

I generally pay my stuff early, so this is the first time in years I have a car payment... That gives me jitters. Always somewhere else I could spend the money in "smarter" ways. In the end it was my wife that take me into. She told me that I take care of my family, work hard, and deserve it. I knew there was a reason I kept her around LOL.

 

[Hack]

It's good that you are nervous.

My opinion is that it's ok to have a car loan, but NEVER EVER be upside down on a car loan (unless you have liquid assets that can be used to pay the difference in case of an emergency). Have an escape plan that leaves you financially whole if you lose your job and have trouble finding another quickly. And be ready to sell if something happens where you need to do that.

 

[Emt1581]

Today I was talking with a friend. He advised to finance 100% for how cheap the rate is. But that would make the monthly payments $467/mo for 6 years!

If I put down $5k-$6k it'll only be $392 for 6 years.

So unless the lender requires GAP or a certain percentage down at purchase...maybe I'll just do the $$5k down to soften the required monthly payment even though I'm planning on a heftier payment to be done sooner.

-Emt1581

 

[coltgus]

Your friend is right, as I said before if you put the extra payments in a savings account. I wouldn't put any money down, put the $5k in the savings account too. You can buy gap insurance if you're worried about being upside down. The general idea is to borrow as much money as you can with these low rates, paying off debt that is accruing 2% interest is not smart.

 

[LETHAL]

I got reeled in by the 0% financing for 72 months and zero down.

I have had a car payment that has steadily gone up with each trade/upgrade, so I was not nervous about the payment really.

Only real down side was being upside down on my trade as well as the Mustang being a dealer trade and they didn't deal too much off MSRP.

 

[SJulian10mm]

I got reeled in by the 0% financing for 72 months and zero down.

I have had a car payment that has steadily gone up with each trade/upgrade, so I was not nervous about the payment really.

Only real down side was being upside down on my trade as well as the Mustang being a dealer trade and they didn't deal too much off MSRP.

I got the 0% for 48 months (will probably pay it off in 24-28), with 10k down, no trade. Cash outright purchase is the best way to buy a car, but a 0% loan is just as good long term as long as your never late on a payment.

 

[Kong76]

Well yeah gap insurance covers the difference between what you owe and what the car is worth.. but if you put a big down payment you should have positive equity in the vehicle so you don't need gap insurance because well.. there is no gap between what you owe and what it's worth Lol.. ideally.

I ended up rolling $8k positive equity into the mustang and after a year I am barely ahead $1k. The absolute worse resale value of any vehicle I have owned. Give you an idea. I traded in my 2013 Jeep Wrangler with 33k miles and they gave me $23,500 for it. I bought it new for $23200. I shit you not. I realize they overpaid me but after driving this manual shitbox of a tranny for a year I think we broke even. Gawd damn this mt82.

 

[Emt1581]

I got the 0% for 48 months (will probably pay it off in 24-28), with 10k down, no trade. Cash outright purchase is the best way to buy a car, but a 0% loan is just as good long term as long as your never late on a payment.

I won't have that option. But from what I see of decades past, 2.49% really isn't bad.

-Emt1581

 

[16 GT MM/Auto]

There was a time when I thought everything was going good, but then I got slammed on multiple fronts and lost nearly everything. Took me almost two decades to get back to where I was.

The bottom line is no one knows what tomorrow brings, so if people are financially stable ... then go for it.

 

[LG23]

One thing I was nervous about was how many vids I'd seen of mustangs losing control. That and driving this car in the winter.

The first one I've learned is mainly just people who don't know how to drive. As for winter, I'm still a bit nervous but now that I'm used to the car I feel like with some snow tires I won't really have a problem.

 

[WhiteyDog]

There was a time when I thought everything was going good, but then I got slammed on multiple fronts and lost nearly everything. Took me almost two decades to get back to where I was.

The bottom line is no one knows what tomorrow brings, so if people are financially stable ... then go for it.

Preach it, brotha. True words from hard lessons learned.

 

[Snide]

My only concern was how much my 2009 Pontiac G8 GT was going to garner on trade in. 37,000 miles, the dealer agreed to 18,000. I purchased a Premium Package, automatic, 2016 Mustang GT CPO, with 7200 miles for $31,000.

I am sastisfied.

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