$1,000+ a month for new vehicles: Car payments "look more like mortgage payments"

[LSchicago]

My 18 GT new was $408 a month for 60 months (with a good trade). Paid off in under 4 though. My next purchase will be without a trade. Good thing it's only a Maverick. Knock $20K off the average new car price.

Sponsored

 

[shogun32]

Good thing it's only a Maverick. Knock $20K off the average new car price.

come on, help the dealer out and pay him 20k in ADM. I'm not kidding. Someone actually did that at a local dealer. It was a Mav Limited and every option or something silly. I actually stood next to the couple as they were taking delivery. Seemed like every-day folk in their 60's.

 

[LSchicago]

come on, help the dealer out and pay him 20k in ADM. I'm not kidding. Someone actually did that at a local dealer. It was a Mav Limited and every option or something silly. I actually stood next to the couple as they were taking delivery. Seemed like every-day folk in their 60's.

I see used XL & XLT's with $10-$15K markups over new sticker. (Top trim is a Lariat BTW) My dealer offered to order at sticker. I don't need one today, and I've actually been wanting one for about a year. I could go test drive one of those markup queens. But it would be smart to buy even if I didn't intend to keep the way the market is. I couldn't lose much even if the market corrected. They are near impossible to find.

 

[Strokerswild]

I see used XL & XLT's with $10-$15K markups over new sticker. (Top trim is a Lariat BTW) My dealer offered to order at sticker. I don't need one today, and I've actually been wanting one for about a year. I could go test drive one of those markup queens. But it would be smart to buy even if I didn't intend to keep the way the market is. I couldn't lose much even if the market corrected. They are near impossible to find.

My brother ordered a decked out XLT back in February at a hair under sticker right before Ford put a halt on orders due to demand. He was told then that it would be late summer before he saw it, but has since learned that it very well may be next year. He doesn't care when it lands since he has multiple drivers and (like me) will never pay a markup. I blame it on Dad teaching us the value of money young (and buy property, not BS). However, with the market as it is, I'd buy one to flip if I could get one at list.

 

[TundraOnKings]

Depending on your situation saving up for large purchases can be difficult if not impossible. Millions of people live paycheck to paycheck. Saving for them is just not possible. Those of us who actually can afford the luxury of paying cash it is not always the best choice. I have a 72 month loan at zero percent interest. My cash is earning significantly more. Finding someone else to pay for financing is the way to go.

Oh, I am 100% behind borrowing free money when I average a 7-8% return lol. I agree.

 

[Stage_3]

Yeah, all the toys are going to cost big money. It's getting worse every year.
I priced out a '22 Jailbreak Challenger as I wanted it optioned out. That was 105K!!!!!
I almost threw up. lol That's ridiculous.

 

[EFI]

I’d buy used before I spent this kind of money for a new car.

Depending how old you are, you will eventually. It's inevitable, unless inflation goes negative for good.

If you ask boomers, they think today's new vehicle loans in the $5-700 range (which is pretty normal and accepted by everyone) resemble mortgage payments from the 70s and 80s. Everything goes up, and eventually even bargain based econoboxes will be selling for $1000 monthly payments and it will be normal to pretty much everyone.

 

[Cobra Jet]

Depending how old you are, you will eventually. It's inevitable, unless inflation goes negative for good.

If you ask boomers, they think today's new vehicle loans in the $5-700 range (which is pretty normal and accepted by everyone) resemble mortgage payments from the 70s and 80s. Everything goes up, and eventually even bargain based econoboxes will be selling for $1000 monthly payments and it will be normal to pretty much everyone.

Everything goes up, except employees pay...

 

[69mach1-395]

Oh, I am 100% behind borrowing free money when I average a 7-8% return lol. I agree.

Free money? Where is this deal?
Even a 3% loan works when you average 7 % returns. Which is about where my new truck loan will be, until I decide to pay it off early

 

[Hack]

Depending how old you are, you will eventually. It's inevitable, unless inflation goes negative for good.

If you ask boomers, they think today's new vehicle loans in the $5-700 range (which is pretty normal and accepted by everyone) resemble mortgage payments from the 70s and 80s. Everything goes up, and eventually even bargain based econoboxes will be selling for $1000 monthly payments and it will be normal to pretty much everyone.

I'm a gen x and my first house payment in the 90s was in that range. I'm glad the Mustang is paid off and only has 26,000 miles on it. Should be a few years before any big investments are needed.

One thing not mentioned enough is used car trade-in values. I traded my 2018 FiST for the GR86. I had that car for over 2 years and 20 something thousand miles and I only lost about $1,000 on the deal. Pretty nice.

 

[Jimmy Dean]

So, we just traded in my wifes 16 4runner for a 19 4runner, to get 4wd mostly, as I am selling the 250, which we use the 4wd around the property toget out mowers/tractors, pull trailers etc. we need it.

I'd run the numbers, the payment should be about 620 a month, less than it was on the 16 with the trade in.

their paperwork had it at 900 a month!!. got to looking, they had gap, and warranty, and life insurance, nad so much other shit they just expected us to take, and this was at a ford dealer. guy got all pissed when I scratched all that shit out. knocked 300 bucks a month off the payment. wtf. hell, my new mach 1 did not even cost that much!

 

[Hack]

So, we just traded in my wifes 16 4runner for a 19 4runner, to get 4wd mostly, as I am selling the 250, which we use the 4wd around the property toget out mowers/tractors, pull trailers etc. we need it.

I'd run the numbers, the payment should be about 620 a month, less than it was on the 16 with the trade in.

their paperwork had it at 900 a month!!. got to looking, they had gap, and warranty, and life insurance, nad so much other shit they just expected us to take, and this was at a ford dealer. guy got all pissed when I scratched all that shit out. knocked 300 bucks a month off the payment. wtf. hell, my new mach 1 did not even cost that much!

Such an annoying part of the car buying process. Dealers always try to sell a ton of extra stuff and then the scumbag sales people act mad when you say no. Jerks.

 

[Mike00]

Dave Ramsey would not approve!!

I’m not into borrowing money. Crazy that anyone could afford a $1000+ car payment, but just isn’t patient enough to save up for a little bit and just buy outright with cash. I started the cash car thing out of high school.

Most cars are 2-3%. Car interest still cheap I’d rather invest the cash than pay $50-60k for a car - and I do which is why i have rental properties brining in money. Far better uses for capital.

 

[TundraOnKings]

Most cars are 2-3%. Car interest still cheap I’d rather invest the cash than pay $50-60k for a car - and I do which is why i have rental properties brining in money. Far better uses for capital.

I know, I go against the grain I guess.
I think I just sleep better at night knowing that I don’t owe people money.
Out of the 3 properties I own, I have mortgages on 2. My financial guidance says do not pay either one of them off, but I’m paying off our rental property here in the next few months and then will only have my primary residential mortgage left, which is hopefully paid off in another 6 years. I’m 41……so I have a ways to go…..hopefully God agrees
We have stocks/IRA/401K’s etc - so a broad portfolio.

 

[shogun32]

which is hopefully paid off in another 6 years.

the problem is you never own property. With rare exception the local gov't has a non-revocable permanent lien on it - just like communist China. A primary residence should be excluded from tax-based extortion nation-wide but alas...

Sponsored