Average S550 monthly payment?

[Cory S]

Except that's completely psychological. Unless we say it's simply not smart to buy a Mustang, period, then the monthly payment amount isn't the important consideration. For example, you'll end up spending less money with a 48-month loan than with a 72-month loan if you're paying less interest for the shorter term, even if the monthly payment is higher.

That's one of the tricks dealers play. It's easy to hit someone's monthly payment target simply by offering a longer loan term at higher interest. But they'll end up spending more for the car.

Correct. It’s sad how many people don’t know simple loan smarts.

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[Tucker80]

My wife's going to kick my a$$ if Ford offers 0% financing this winter. She told me to wait a little while to see what happens and I was impatient. The thing is, I can't imagine them offering that deal when interest rates generally are so high.

They might not go 0%, but I'd bet they have less than 2% in December on Mustangs. Sales are going to slow and they'll have inventory that needs to move quickly. The only lever they'll have to pull is Ford credit super low interest rates.

 

[wynand32]

They might not go 0%, but I'd bet they have less than 2% in December on Mustangs. Sales are going to slow and they'll have inventory that needs to move quickly. The only lever they'll have to pull is Ford credit super low interest rates.

We'll see, of course. With demand remaining high and supply constraints not going anywhere, it's still a seller's market for Mustangs. It won't be the end of the world if they offer 1.9% or something compared to my 3.9%, because I started with a reasonably low loan amount and plan to pay it back more quickly than the 72 months.

 

[AvalancheSVT]

I only financed because I wanna see what shakes out in the next few months with the world being batshit insane. worst comes to worse I can handle a 255 note on a 50K car for a few years.

 

[Schnder95]

Put down 25k and monthly payment is around 700. 4% interest rate.

 

[Lgb0250]

Seems like there are a bunch of financial wizards here so let me pose a question. What’s better, to finance $60k for 60 mos at 4.79% which equals a pmt of $1127 or to take money out of an investment that is returning 9.6% virtually risk free and pay cash?

 

[young at heart]

Agreed, hard to see 0% rates when Ford Credit’s borrowing rates are higher than 0%.

FC is indeed paying more than 0% for their money but that really has no bearing on whether they might offer a 0% retail finance rate. To oversimplify things they basically pull the financing dollars deficit out of the marketing dept. and send it back to FC because it is actually a marketing decision that is forced on FC.

 

[Cordero1]

$538/ %0 APR, 5 year loan.

 

[MAGS1]

Seems like there are a bunch of financial wizards here so let me pose a question. What’s better, to finance $60k for 60 mos at 4.79% which equals a pmt of $1127 or to take money out of an investment that is returning 9.6% virtually risk free and pay cash?

The rate of return on the investment is higher than the interest rate, so you’re money ahead. All depends on your budget if you’re willing to take on an $1,100 car payment.

 

[wynand32]

Seems like there are a bunch of financial wizards here so let me pose a question. What’s better, to finance $60k for 60 mos at 4.79% which equals a pmt of $1127 or to take money out of an investment that is returning 9.6% virtually risk free and pay cash?

If you start with $60K in principal and invest it at 9.6% annual return, you'll have $94,886 at the end of 5 years.

If you finance $60K at 4.79% for 5 years, you'll pay $7,591 in interest with total loan payments of $67,591.

Edit: Where the heck do you have your money that it's returning 9.6% annually with virtually no risk?

Edit 2: And then it's not quite so straightforward, because you'll have to pay income tax on the investment. But I'm not going to try to figure that out.

 

[MAGS1]

FC is indeed paying more than 0% for their money but that really has no bearing on whether they might offer a 0% retail finance rate. To oversimplify things they basically pull the financing dollars deficit out of the marketing dept. and send it back to FC because it is actually a marketing decision that is forced on FC.

True, assuming there’s room in the marketing department budget for that. I would assume they have it in their back pocket if needed, but even then given where bank rates are, they could even offer 1.9% or 2.9% on 60/72 and be able to move cars and get a little I return on their money. Will be interesting to see what the winter brings.

 

[_zOmbIE_]

My '22 GT Premium is costing me $658 CAD (roughly $478 USD) bi-weekly

I financed through Ford Credit at 2.49% over 60 months.

Full amount financed was $79,238.66 CAD ($57,594.62 USD) Including taxes, fees, etc and an 8 year ford factory warranty.

Full disclosure, I own my house and my Bronco. The only payment I have beyond utilities/groceries/etc is my car

 

[Lgb0250]

The rate of return on the investment is higher than the interest rate, so you’re money ahead. All depends on your budget if you’re willing to take on an $1,100 car payment.

Good answer

If you start with $60K in principal and invest it at 9.6% annual return, you'll have $94,886 at the end of 5 years.

If you finance $60K at 4.79% for 5 years, you'll pay $7,591 in interest with total loan payments of $67,591.

Edit: Where the heck do you have your money that it's returning 9.6% annually with virtually no risk?

Edit 2: And then it's not quite so straightforward, because you'll have to pay income tax on the investment. But I'm not going to try to figure that out.

another good answer. This particular example was money currently in I-Bond at 9.62%. I guess what I was trying to address is every person here has a different set of circumstances. whats right for them may seem stupid to us. Where in fact it’s not stupid at all If It works for them. When or if my new ride ever shows up I’ve got a 2019 RX350 with clear title that I will probably put down and probably pay the balance with either a small loan or cash. Depends on how the winds are blowing when it gets here.

 

[rongxanh]

Nobody can know another’s financial details but logically you would think that if one could afford a payment like $960 he could likely afford a big down payment if he had wanted to. So good chance there are factors in play we don’t know about.

I don’t mean to sound judge-y but I just find these real big numbers kinda shocking. I guess everything is relative.

Agreed. I'm just saying even if I made 300K a year, I wouldn't blow $1100+/month on a Mustang. Period.

Its not really a bad financial decision to make a payment of around $1k a month. The bad financial decision is the actual car. $1600 for a set of tires, premium gas, insurance, I could go on and on. The reality is that I determined this is what I would like to spend on a car as a daily and I have no regrets. Yes, I could afford going into another tier of car ownership, like a Cayman S or something like that but then the maintenance costs go up that much higher.

If someone could afford a 911, but they bought a Mustang GT, isnt' that a much better financial decision? Being a good financial choice isn't a binary result.

 

[BombZombie]

$1100 a month.

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