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Ford Wants To Suck More People Into 84-Month Loans

Jimmy Dean

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Given the age demographics of Mustang owners these days I'm not sure an 84 month loan is a good bet. Hell, at my age I think twice before buying green bananas.
yeah, from peoples comments in the Mach 1 section, I may be the youngest owner at not yet 40.
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Shifting_Gears

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Given the age demographics of Mustang owners these days I'm not sure an 84 month loan is a good bet. Hell, at my age I think twice before buying green bananas.
They're probably betting on people that only hold a car 1-3 years, can't take not having a new car, trading it in and taking a huge loss of rolling negative equity into a new car as well.

Noticed your location - my brother and his family used to live in Livermore. Nice areas!
 

cactus_kid

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Given the age demographics of Mustang owners these days I'm not sure an 84 month loan is a good bet. Hell, at my age I think twice before buying green bananas.
But, that's the whole Idea. My so's not on the paper. If I don't make it to the end of the loan ? Meh. Ford can have the car back. :crackup:
 

Jimmy Dean

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But, that's the whole Idea. My so's not on the paper. If I don't make it to the end of the loan ? Meh. Ford can have the car back. :crackup:
weird, most of my loans have the opposite, including my mortgage. if I die before it is paid off, the title passes to my heirs free and clear and paid.
 

cactus_kid

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weird, most of my loans have the opposite, including my mortgage. if I die before it is paid off, the title passes to my heirs free and clear and paid.
You must have some form of insurance that pays the loan off.
 

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Jimmy Dean

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You must have some form of insurance that pays the loan off.
yeah, having money that the bank wants me to have an account there for. nothing special. Just that the odds of me dying before I am 55 (when the loan is paid off) are less than what they'll make if I drop millions through that bank over the next few decades.
 

cactus_kid

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I'll take 0% any time. 60 mos, 84 mos. It's their money I'm working on. In the meantime, mines in the market making me money.
 

Vlad Soare

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cactus_kid

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In truth, none of them knows what works best. It has to be an individuals choice. If ones investments have a yield greater than that of the loan interest charged, why would one not take the lower interest loan. If I am offered 0% for 60 mos I'm taking it. Nor am I going to bust my ass to pay it off early. I let the residuals from my investments pay for my toys.
 

tom_sprecher

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This article is based on false logic. The author describes how Ford is offering long term 0% loans which he claims are bad, then concludes with an example using 60 months at 6.9%. Not the sharpest tool in the shed.

$0 down, 0%? Hell yeah, and the longer the better. I make money using Ford Credit. Take the $40k some people pay cash with, and put it in the S&P 500, which by the way is up about 100% in the past 5 years, and viola! You now have $80k.
 

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shogun32

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This article is based on false logic. The author describes how Ford is offering long term 0% loans which he claims are bad, then concludes with an example using 60 months at 6.9%. Not the sharpest tool in the shed.

$0 down, 0%? Hell yeah, and the longer the better. I make money using Ford Credit. Take the $40k some people pay cash with, and put it in the S&P 500, which by the way is up about 100% in the past 5 years, and viola! You now have $80k.
hell just buy preferred shares with the money and collect the quarterly dividends at about 3-8% yield.
 

cactus_kid

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Clearly a case of eating bad mushrooms. :crackup:
 

Ebm

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Not going to blame ford for this, I'm sure other manufactures are offering 84 months as well. With cars and trucks selling for over 50k, 84 months is going to help the people that shop by what's my payment. With the way things are going, I would not be surprised if 96 months becomes a reality in the future. I may not agree with it, but if it helps them sell cars and people want to make payments that long then more power to them.
96 month new car loan terms already do exist. Crazy right? That's irresponsible... Even with 0% interest. :facepalm:
 

04DarkShadowGT

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I am not opposed to financing a car, it can make a lot of sense in many cases but my issue is the vast majority of times someone signs up for a 7 year loan it is to get them in a car they shouldn't be in.

Long terms and inflated prices are going to crush a lot of people financially when the bottom falls out of the car market in a couple years.
 

20VGT

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96 month new car loan terms already do exist. Crazy right? That's irresponsible... Even with 0% interest. :facepalm:
Holy crap I didn't know that, i can't believe someone would want to make payments for 8 years. If you have to go that long to get the payments where you need them. Then you can't afford the car.
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