Years financing a S650

[NegativeMultiplier]

You probably are not a young prospective 1st time Mustang buyer, either.

Is that the impression I gave off?

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[lcbrownz]

Unfortunately that's becoming a standard for new cars. All I see is the car will be worn out before you ever pay it off. We live in a world however where I need to have the newest SUV to function in life and people see a need to pay a house payment for one.

Actually, this same occurrence happened during the mid-late 1970s. Folks were driving around in cars where their car payment was higher than their house payment.

 

[Onewolf]

My rule for car financing is not to finance for any longer than the remaining base warranty period. For a Ford that mean 3 years.

 

[Replicator]

Actually, this same occurrence happened during the mid-late 1970s. Folks were driving around in cars where their car payment was higher than their house payment.

As long as that's what makes you happy in life I say go for it. I see it both ways. I've seen people living in trailer parks purchase vehicles with $1200, $1300, $1500/month payments. I've also met people with half a million dollar houses drive around in beaters because they just flat out refuse to finance a vehicle. If you have a steady job, enough disposable income each month, and content where you're at in life for the duration of the auto loan its a no brainer.

 

[93-Oct Mayne]

As long as that's what makes you happy in life I say go for it. I see it both ways. I've seen people living in trailer parks purchase vehicles with $1200, $1300, $1500/month payments. I've also met people with half a million dollar houses drive around in beaters because they just flat out refuse to finance a vehicle. If you have a steady job, enough disposable income each month, and content where you're at in life for the duration of the auto loan its a no brainer.

It amazes me to see the living conditions of some of the people driving around in Mach 1s, GT350s and boosted coyotes, but its also why I love the mustang community. These people are passionate about their cars

 

[Bikeman315]

If you have a steady job, enough disposable income each month, and content where you're at in life for the duration of the auto loan its a no brainer.

If this were true there wouldn't be 72 or 84 month loans. These are specifically designed for those that cannot really afford a new car. Unfortunately that encompasses a large percentage of folks here in the US.

 

[NegativeMultiplier]

If this were true there wouldn't be 72 or 84 month loans. These are specifically designed for those that cannot really afford a new car. Unfortunately that encompasses a large percentage of folks here in the US.

I agree with this though I'm of the opinion that it's highly financially irresponsible to make yourself liable for a car for that long.

Back when I was much younger I used to swear to my parents that I'd buy a Ferrari before I turned 30. At some point I heard that those outside a certain income bracket were either leasing or financing for twelve years and I threw that idea out the window. Still want one but I don't like the idea of being in debt on anything other than a house for that long.

 

[Replicator]

If this were true there wouldn't be 72 or 84 month loans. These are specifically designed for those that cannot really afford a new car. Unfortunately that encompasses a large percentage of folks here in the US.

They are more designed for the impatient. The logic is "I can save for a down payment to get a 48/60 loan with manageable payments... orrrr I can get a 72/84 loan because I want the vehicle right now with payments in my range." These are usually the people that live *paycheck to paycheck" and as soon as they get freed up credit they see the need to utilize it. Unfortunately, most people don't look at long term financials anymore or are even taught it. Thus they never understand the longer your loan terms the more money you're throwing to the bank regardless of interest rate. We're raising a society of dependency unfortunately, but I'll stop before getting political.

 

[OppoLock]

They are more designed for the impatient. The logic is "I can save for a down payment to get a 48/60 loan with manageable payments... orrrr I can get a 72/84 loan because I want the vehicle right now with payments in my range." These are usually the people that live *paycheck to paycheck" and as soon as they get freed up credit they see the need to utilize it. Unfortunately, most people don't look at long term financials anymore or are even taught it. Thus they never understand the longer your loan terms the more money you're throwing to the bank regardless of interest rate. We're raising a society of dependency unfortunately, but I'll stop before getting political.

They’re a predatory practice that take advantage of financially illiterate people to get them into a vehicle well out of their means, padding interest to the deal, and leaving them with a car that’s worth far less by the time it’s paid off. Of course, they probably roll that upside down loan into another car and repeat the cycle.

It amazes me that 90% of the dealers I talk to—after introducing myself, letting them know that I’m strictly concerned with the all-in price and will make the deal work after the fact—will immediately counter with “well if you’re financing any amount, what monthly payment are you looking at? We could always make it work,” like my words are shooting through their ears with zero resonance

It’s a traditional practice that makes anyone think they can make that 70k vehicle fit their 30k budget thanks to 8-10 year loans

 

[lcbrownz]

They’re a predatory practice that takes advantage of financially illiterate people to get them into a vehicle well out of their means, padding interest to the deal, and leaving them with a car that’s worth far less by the time it’s paid off. Of course, they probably roll that upside-down loan into another car and repeat the cycle.

It amazes me that 90% of the dealers I talk to—after introducing myself, letting them know that I’m strictly concerned with the all-in price and will make the deal work after the fact—will immediately counter with “well if you’re financing any amount, what monthly payment are you looking at? We could always make it work,” like my words are shooting through their ears with zero resonance

It’s a traditional practice that makes anyone think they can make that 70k vehicle fit their 30k budget thanks to 8-10 year loans

I have walked out of many Ford dealers with that same attitude. They think the customer is a blooming idiot and wants us to believe anything they say.

 

[NegativeMultiplier]

Unfortunately, most people don't look at long term financials anymore or are even taught it.

So lacking in basic mathematical skill and critical thinking?

It amazes me that 90% of the dealers I talk to—after introducing myself, letting them know that I’m strictly concerned with the all-in price and will make the deal work after the fact—will immediately counter with “well if you’re financing any amount, what monthly payment are you looking at? We could always make it work,” like my words are shooting through their ears with zero resonance

This is one of the multiple reasons I'm going to go through my own bank and not through Ford unless they're offering 0%, which as I said already is highly unlikely to happen on a DH.

 

[Replicator]

Maybe it's too early to do this, but assuming I do what I plan to and finish paying off my EcoBoost (Base 101A) in the middle of 2025...how do you know how much of the car's value can be used as part of a down payment (if it's even possible to do so)? I'm assuming I'll be able to get anywhere between 15-20K for it as I don't anticipate accumulating more than 20K miles on it by then (thank short work commute for that).

When you're ready to, go to the NADA site (don't use KBB). It can give you a rough trade value. I would plan on the lower end of the trade value range. You'll have to wait until you're close to pulling the trigger as market values can fluctuate drastically in the next couple of years. Anything you see now could end up thousands of dollars different in either direction.

 

[mustang5o]

Me personally I try to get the ford extended warranty with the car and the length of it which I think is 7 years is what I go for on loan length as well. As long as you have good credit and low interest you’re only paying about 50 dollars in interest per month in the long term it is more money yes but if you saved up and invested that saved money properly you’ll be ahead at the end of the loan term. Even better I think ford was financing for like 1% at one point when they run promotions something like that is a no brainer

7 YEARS?! I refuse to pay for a car for that long

In case anyone isn't aware of this, Ford ESP can now be purchased for up to 10 years. Is that a sign of financing terms to come?

When you're ready to, go to the NADA site (don't use KBB). It can give you a rough trade value. I would plan on the lower end of the trade value range. You'll have to wait until you're close to pulling the trigger as market values can fluctuate drastically in the next couple of years. Anything you see now could end up thousands of dollars different in either direction.

It can very greatly for sure. I made the mistake of waiting 1 more year to sell my 2019 PP2 to order a Mach1. Obviously the market was way different a year ago with the highly inflated car market. Things have come back down now. Luckily it worked out well enough that I should be putting down 1/3 the price of the M1. Plus, having the money for taxes/plates and full vehicle PPF. I might just pick me up a 10 year warranty with it as well .

 

[zstanny]

Did you already do the full ppf?

In case anyone isn't aware of this, Ford ESP can now be purchased for up to 10 years. Is that a sign of financing terms to come?



It can very greatly for sure. I made the mistake of waiting 1 more year to sell my 2019 PP2 to order a Mach1. Obviously the market was way different a year ago with the highly inflated car market. Things have come back down now. Luckily it worked out well enough that I should be putting down 1/3 the price of the M1. Plus, having the money for taxes/plates and full vehicle PPF. I might just pick me up a 10 year warranty with it as well .

 

[mustang5o]

Did you already do the full ppf?

No, I have a 2023 M1 on order.

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