Was anyone else nervous before buying an S550?

[Emt1581]

To say the last 5-6 of my life have been a wild ride would be putting it mildly. Close family members dying, financial strain (while still managing to maintain perfect credit!), job loss/changes, buying/fixing/maintaining a home, etc....However, over the past year, things have drastically changed for us. We're solid financially speaking, jobs have been good, some health issues but no one's perfect.

So now, other than just researching and watching from the sidelines, I'm finally 100% good to go with buying...but I've never done it before. Bought and sold a bunch of vehicles...but never bought a new one and never for the $32k OTD the Stang GT w/PP is going to cost. To be honest, I'm a little nervous/scared now that I'm coming down the home stretch with negotiations with the dealer and could be signing the paperwork in the next week or two...if I don't wait until April to see if there are better incentives coming out.


Here are my concerns...

First and foremost, making the payments long-term.

I've always bought vehicles outright privately and from dealers. No loans/financing just hand over the cash and drive away and nothing could happen that would jeopardize my ownership.

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.


Next up is on the durability and longevity of the car.

I'm used to spending my warm-weather weekends repairing or maintaining our 06 145k Legacy and 02 182k Forester (meanwhile my 86 Intruder just needs oil/filter once a year!). Part of why I'm buying the Mustang is so I don't have to do that...at least not for 3-5+ years. This will only be a warm weather car unless one of the others break down in the winter...then it'll be a backup while I cringe driving on the salty/brined roads! Just don't want to have to worry about the hassle of dealing with a dealership and repairs up front. From what I've seen these cars are pretty solid but again....just nervous if I get one with a gremlin in the trans or something similar. Never dealt with dealers/warranty claims.


That's really it. I know the car is going to be mindblowing just from researching and the test drive we did last year. Insurance is the cheapest I've seen anyone on here share (adds $430 a year....A YEAR!... to our plan). Garage needs some final cleaning but is pretty much ready for the car.

So are my jitters normal? Or is there a red flag I'm not realizing?

Thanks

-Emt1581

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[wildcatgoal]

Yes. Because I had to drive it home on summer tires through a snow storm.

 

[Emt1581]

Yes. Because I had to drive it home on summer tires through a snow storm.

:lol:

Yup, that goes along with it being a backup car and being on salty/brined roads I was talking about.

Thanks

-Emt1581

 

[timd38]

First, if you can't pay for it three years, buy what you can afford and all those jitters go away. Based on what you aid, 2 is your plan and that is good.

 

[furiousfuria]

No, because I knew what I wanted, knew my budget and was ready to make it happen

 

[CompOface]

I just picked up a 2015 with 1,100 miles on it (so almost brand new) and close to the price you are looking at, although a bit less. I actually picked it up from a dealer in PA. I went through the same jitters, mainly because I already have 3 other cars and who really needs a 4th. My fiance has her own too so 5 really. And who can forget the mortgage! Two of my others are classics and I am looking to sell one, never have enough time to keep them wrenching on them and enjoy them enough.

Anyways, its normal to second guess a toy! Sounds like you have taken care of your other obligations and its time to have something to enjoy. I've only driven mine back to MA and now it sits in the driveway waiting for the snow to stop falling. That being said, I know I made the right choice and couldn't be happier. If the finances make sense, pull the trigger and never look back. If you know a mustang is for you, you will not regret it!

 

[bumada]

Maintenance is pretty much a non issue. Something major will be taken care of but the factory warranty, get an extended one to cover more. It sounds like you'll be paying it off aggressively which should keep your loan below the worth of the car in case you ever need to part ways under a hardship. It seems that you have a great grasp of your finances and there should be nothing to worry about.

 

[Bluestang59]

Relax and enjoy the car - Life is too short - If you can make the payments go for it and enjoy - Based on your other rides you have sacrificed long enough !

 

[Krogen]

Jitters are normal; even for a seasoned new car buyer. But, if jitters are actually fear then listen to your internal voice.

One thought. You want to pay off your longer-term loan early. If you can invest for a return that beats the cost of your loan's interest, then invest that extra money rather than paying off the loan. By invest, I don't mean a CD or savings account, look for a fairly stable bond fund. Liquidity is the goal. You will have those funds in a liquid account that you can use for emergencies or car payments. Or you might decide to pay off the loan when your investment account exceeds the loan payoff. Liquidity gives you options. Pay off the loan early and your funds aren't liquid; they're tied up in the car. OK, you could sell the car to get liquid again, but you'd take the depreciation hit.

Just my 20 m$ and I'm not a financial adviser. The above post is worth no more than what you paid for it!

 

[Emt1581]

Jitters are normal; even for a seasoned new car buyer. But, if jitters are actually fear then listen to your internal voice.

One thought. You want to pay off your longer-term loan early. If you can invest for a return that beats the cost of your loan's interest, then invest that extra money rather than paying off the loan. By invest, I don't mean a CD or savings account, look for a fairly stable bond fund. Liquidity is the goal. You will have those funds in a liquid account that you can use for emergencies or car payments. Or you might decide to pay off the loan when your investment account exceeds the loan payoff. Liquidity gives you options. Pay off the loan early and your funds aren't liquid; they're tied up in the car. OK, you could sell the car to get liquid again, but you'd take the depreciation hit.

Just my 20 m$ and I'm not a financial adviser. The above post is worth no more than what you paid for it!

I've thought about that. And my dad (a Stang owner) is a broker. Might run that past him to see what he says.

We are also going to be doing some other home repairs though...new windows, garage doors, etc. So can't tie up all disposable cash in something to sit. Just have to check in about that liquid account setup you were talking about.

Thanks

-Emt1581

 

[Kevin08]

I am a little anxious because this would be my first new car and largest purchase in my life, so far. My plan is similar with financing for 6 years just to have the lowest monthly commitment, but pay it off early. I would qualify for whatever the prime rate is so I'm not super concerned with losing out on interest over a 6 year period. But, we get fairly generous profit sharing bonuses each winter so I could probably have it paid off in 3 years and still maintain my savings account. I'm no investment guy so I haven't even looked into investing vs paying off early. I'd like to buy a house within the next 5 years so I kind of want to eliminate any monthly obligations I can ASAP.

 

[Coolmanfoo]

I got a good deal on my base gt. But at the time I only had $7k to my name and I needed to put 5k down. When I drove the car off the lot I thought I was going to throw up all over my new beast. Those jitters lasted a couple days.

Fast forward a year and I can honestly say it's the best decision I ever made. Even found a way for the car to help me make money.

Life has many unforseen events, some good, some bad. Just gotta roll with the punched. Oh and in just in case you may want to buy a couple cases of ramen.

 

[AR306]

I too am a pessimist and was concerned of what might happen if I took out a loan on a new car Lol.. "what if I lose my job? what if I get injured at work? what if I total the car?.." etc etc..

What helped alleviate some of my worries was putting down 30% up front.. no need for gap insurance, my payments are reasonable and easily manageable and worst case scenario if for whatever reason I can no longer afford the vehicle I could sell it without ending up in debt or ruining my credit.. I also overpay every month.. my statements from Ford credit have been at $0 due for a while now.. Lol.

I will admit however, I did NOT get exactly what I wanted nor did I get a good deal.. I wish I would of been more objective when I got my car, it was 100% an impulse/emotional buy and I kinda screwed myself Lol.

So TLR, if you're that concerned just save up for a big down payment, that'll ease everything from payments to equity.

 

[Emt1581]

I too am a pessimist and was concerned of what might happen if I took out a loan on a new car Lol.. "what if I lose my job? what if I get injured at work? what if I total the car?.." etc etc..

What helped alleviate some of my worries was putting down 30% up front.. no need for gap insurance, my payments are reasonable and easily manageable and worst case scenario if for whatever reason I can no longer afford the vehicle I could sell it without ending up in debt or ruining my credit.. I also overpay every month.. my statements from Ford credit have been at $0 due for a while now.. Lol.

I will admit however, I did NOT get exactly what I wanted nor did I get a good deal.. I wish I would of been more objective when I got my car, it was 100% an impulse/emotional buy and I kinda screwed myself Lol.

So TLR, if you're that concerned just save up for a big down payment, that'll ease everything from payments to equity.

The GAP...I thought that was optional with your car insurance company to protect the car from depreciation...no?

I could put down $11k...to be at 30%. But I was actually toying with a $0, $5k-$6k and then a $10k down payment. I'll have to run it by the lender and my car insurance agent but if it's like PMI for a house where I have to pay extra and it's a significant amount....screw that!! I'll just do the $11k.

Thanks

-Emt1581

 

[AR306]

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.

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