Insurance agent just made my day!

[Emt1581]

Well yeah, if you owe zero on an older car and it's worth $5,000 you'll get a check for $5,000.

New cars however depreciate like crazy.. so don't be shocked to see a drop in value of 10-15% in the first year. This is why gap insurance is necessary for most people.

Prior to getting this stang, I too bought used outright.. this is my first new car loan and unless you have some assets like a house (if you still owe, hopefully you have equity in it) they may ask for 20% down to cover depreciation on the vehicle.

Yup, we have our home, probably close to 40% paid off. And again, I've got perfect credit....like 850+. Never carried a balance or failed to pay my bills in the 20 years I've been paying them.

Ok so you are in a similar boat...having only bought used and outright. Help me out with the thought process here and what it's like after the fact. Did you second guess it at all? Ever regret being locked in to a loan knowing damn well you won't get what you're paying out of it financially?? Is the experience this car provides worth it without question?

I want this really bad and have worked like a dog for so long I feel I've earned it. But at the same time it's 4-6 years worth of payments that, once I sign, is NOT going to change until the car's paid off.

What are the pros and cons here? Does this car get you into any fun social circiles...other than the ones that sit and stare at each other's cars in mall parking lots? :ford:

Thanks

-Emt1581

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[Drugdealr]

gap is cheap buy it from your car insurance, never the dealer

My dealership actually had a nice package, extended warranty to 75K/6years, interior warranty that covers the upholstery and carpets and and pretty much anything inside the car, dent repair, unlimited windshield replacements with chip repair is the break isn't to huge, and the gap insurance for 2K.

Living in a place where the roads are asphalt and 18 wheelers don't respect the load they are moving I've had my windshield replaced once already.

 

[AR306]

Yup, we have our home, probably close to 40% paid off. And again, I've got perfect credit....like 850+. Never carried a balance or failed to pay my bills in the 20 years I've been paying them.

Ok so you are in a similar boat...having only bought used and outright. Help me out with the thought process here and what it's like after the fact. Did you second guess it at all? Ever regret being locked in to a loan knowing damn well you won't get what you're paying out of it financially?? Is the experience this car provides worth it without question?

I want this really bad and have worked like a dog for so long I feel I've earned it. But at the same time it's 4-6 years worth of payments that, once I sign, is NOT going to change until the car's paid off.

What are the pros and cons here? Does this car get you into any fun social circiles...other than the ones that sit and stare at each other's cars in mall parking lots? :ford:

Thanks

-Emt1581

1. Second guess it everyday, until I look at my car.
2. Regret being locked into a loan? well I'm not really locked into it, which is why I put enough down so if for any reason at all I don't want the car, or it becomes too much of a money pit I can get rid of it and just walk away with no debt.. I would lose a majority if not all of the money I put down tho.
3. Experience the car provides?.. I have mixed feelings about this. When I first drove the car, I thought it was the coolest thing ever and could not stop driving it. But I dunno.. after a while I've gotten used to the acceleration and the sights and sounds and doesn't really feel all that special anymore. People still stare at it and compliment me on it all the time (the topic of the engine arises each time as well.. is it a V8?! me: No it's a 4 cylinder.. :doh. I dunno, it's kinda lost some of it's magic for me even tho I love the way it looks and I like the way it drives but I feel like I did myself a disservice by not getting exactly what I wanted.. which was a Manual 5.0

So my only advice to you is.. if you can afford it, that is to say if you don't have to change your lifestyle to pay for the damn thing, then go for it.. just make sure you get EXACTLY what you want, DO NOT COMPROMISE ON ANYTHING. I waited for a good year and a half to get this car because I couldn't decide on anything.. it got to the point where I no longer wanted it but actually needed it because my DD was giving me trouble. At that point in time I was reduced to purchasing whatever was available instead of ordering my car exactly the way I wanted. (couldn't wait 8-12 weeks..)

So yeah.. Make sure whatever you get, that it's EXACTLY what you wanted.

Me personally, if I had a 2016 5.0 Performance Pack with black stripes, I would keep it forever. This EB tho.. I'm hoping to trade it in for a GT in 3 years Lol.

 

[Emt1581]

1. Second guess it everyday, until I look at my car.
2. Regret being locked into a loan? well I'm not really locked into it, which is why I put enough down so if for any reason at all I don't want the car, or it becomes too much of a money pit I can get rid of it and just walk away with no debt.. I would lose a majority if not all of the money I put down tho.
3. Experience the car provides?.. I have mixed feelings about this. When I first drove the car, I thought it was the coolest thing ever and could not stop driving it. But I dunno.. after a while I've gotten used to the acceleration and the sights and sounds and doesn't really feel all that special anymore. People still stare at it and compliment me on it all the time (the topic of the engine arises each time as well.. is it a V8?! me: No it's a 4 cylinder.. :doh. I dunno, it's kinda lost some of it's magic for me even tho I love the way it looks and I like the way it drives but I feel like I did myself a disservice by not getting exactly what I wanted.. which was a Manual 5.0

So my only advice to you is.. if you can afford it, that is to say if you don't have to change your lifestyle to pay for the damn thing, then go for it.. just make sure you get EXACTLY what you want, DO NOT COMPROMISE ON ANYTHING. I waited for a good year and a half to get this car because I couldn't decide on anything.. it got to the point where I no longer wanted it but actually needed it because my DD was giving me trouble. At that point in time I was reduced to purchasing whatever was available instead of ordering my car exactly the way I wanted. (couldn't wait 8-12 weeks..)

So yeah.. Make sure whatever you get, that it's EXACTLY what you wanted.

Me personally, if I had a 2016 5.0 Performance Pack with black stripes, I would keep it forever. This EB tho.. I'm hoping to trade it in for a GT in 3 years Lol.

Wow!! Excellent info, thanks for sharing!!

Personally, I've been paying $1k/mo. for childcare for the last 5 years. In June, that's done! So after paying somewhere in the neighborhood of $60k CASH...I'll have that money to play with from now on because I'm still earning it. So instead of paying it for day care I get to pocket $600 and have the bonus of a fully loaded 15 GT. So if anything, my life will be much easier even with paying for the car.

As for getting exactly what I want, the GT is exactly what I want. The GT350 is definitely a nice car, but not something I really aspire to. I know it would be WAAYYY too much power for me plus it's significantly more expensive. So it's not like I really want the GT350 but am settling for the GT. The GT premium (most likely with performance package....is what I want.

I see what you mean about being able to walk away and the down payment. Something to think about. My hope is that I can take care of this car and it'll give us 20yrs+ of good use. That's what I do with most of my cars. But then there was the basketcase of a Buick that went through 4 (warrantied) transmissions, coil packs, and I think the computer was going. That piece of shit was a nightmare...just hoping I can expect Subaru-like longevity out of Ford since I've never owned one.

Thanks again!

-Emt1581

 

[AR306]

Well yeah.. get exactly what you want as long as it's realistic Lol.

I mean, I want a Ferrari but I'm not losing sleep over getting a Ford vs. a Ferrari..

I do wish I had a 5.0 tho..

 

[bmatt]

Also on the loan check around. See if you are eligible for any credit unions or anything through work that may offer good rates. I financed mine through my credit union for 6 years at 1.75%. They also do a bi-weekly deduction from my account to match my pay schedule which is cool.


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[Emt1581]

Also on the loan check around. See if you are eligible for any credit unions or anything through work that may offer good rates. I financed mine through my credit union for 6 years at 1.75%. They also do a bi-weekly deduction from my account to match my pay schedule which is cool.


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1.75%?? That's great!!

Yeah I've belonged to the teacher's credit union since I was 2. Maybe being a member for several decades will get me an extra lollipop.

I'll definitely shop around. Whenever I buy anything over $500 or so I research the crap out of pretty much every aspect of the purchase so that, by the time I'm done I buy exactly what I want and at the cheapest price possible.

Thanks

-Emt1581

 

[bmatt]

Yea it was at 2.25 when I was getting ready to buy and dropped to 1.75 right before I finalized. Looks like they are up to 1.99 now, just checked.

Edit: back to 2.24 on 72 month actually, 1.99 was 60


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[Emt1581]

Yea it was at 2.25 when I was getting ready to buy and dropped to 1.75 right before I finalized. Looks like they are up to 1.99 now, just checked.

Edit: back to 2.24 on 72 month actually, 1.99 was 60


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Is the percentage thing like playing the stock market?...basically a crap shoot that fluctuates daily or can the buyer have an edge?

Thanks

-Emt1581

 

[Drugdealr]

Is the percentage thing like playing the stock market?...basically a crap shoot that fluctuates daily or can the buyer have an edge?

Thanks

-Emt1581

I heard from several people and sources that interest rates are supposed to go up. You might wanna look into that too.

 

[bmatt]

The fed raised its rate for the first time in 10+ years this past week and announced their plan to take it to 1.38% by the end of 2016 (went from 0.25 to 0.5 last week I think?). This is the rates the banks pay generally so it is the basis for consumer rates, well the prime rate technically. Generally loans follow the fluctuations in fed/prime rates and then the bank has its own volatility studies it does etc. To a certain extent rates can fluctuate like the general market but they've been relatively stable recently. Since the fed is raising their rate by a percent I think we can expect rates to go up as well, probably back in the 4-6% range by the end of 2016 (where they were before the whole housing debacle). Just my speculation.


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[SD_GT]

23 years old, $150/month with Geico. Pay to play though, I love this car.

 

[Emt1581]

The fed raised its rate for the first time in 10+ years this past week and announced their plan to take it to 1.38% by the end of 2016 (went from 0.25 to 0.5 last week I think?). This is the rates the banks pay generally so it is the basis for consumer rates, well the prime rate technically. Generally loans follow the fluctuations in fed/prime rates and then the bank has its own volatility studies it does etc. To a certain extent rates can fluctuate like the general market but they've been relatively stable recently. Since the fed is raising their rate by a percent I think we can expect rates to go up as well, probably back in the 4-6% range by the end of 2016 (where they were before the whole housing debacle). Just my speculation.


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I think I'll get on the horn with my banks/credit union this week to gather a frame of refernce that I can monitor from here until June/July.

I'd like to pay as little as possible given that I've been ultra responsible and punctual thus far when it comes to money.

Something else I'm having trouble understanding is why anyone would buy used from a dealer on such a new car?? The warranty is the same from a dealer or private. Lots of extra fees from a dealer. No wiggle room with the taxes. While the private seller is looking to get a certain number, the dealer has to and it's got to be enough to keep the lights on in the office. Plus, unless they run the carfax, they have no clue what someone did to a car which an original owner would be able to share. I wouldn't expect an owner to tell me how they screwed the car up. But part swaps and such.

Thoughts?

Thanks

-Emt1581

 

[bmatt]

You should be able to save a good bit on a used car, that'd be the draw. There is always a risk and the dealer likely got that used one really cheap so you can get them to move a bit, but right now it's probably just as well to go new.

Try to buy at the end of the month, generally that is the best time as dealers are looking to make their monthly numbers. Also check incentives they run, ford has done 0% for 72 months recently. Be sure to check the fine print too, sometimes the 0% may be a sizable cash rebate (few thousand) or 0% in which case the financing charges may be a wash versus that cash rebate.


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[bmatt]

Also, sometimes there are incentives to finance with the dealer too, so keep that in mind as well. Sometimes it's cheaper to finance through the dealer and then pay it off even if you were paying cash for the car. You can move the loan to your bank as soon as your first payment is due as well, my bank charges $15 to move a loan to them.


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