Ford Financing 0% for 72 mos until 9/8/15 --- includes all models except 50th

[Mark Aubele]

Word! I was just making sport of the youngsters financing 100% of a new vehicle. :dumb:

I'd rather have the cash on hand. I never put money down. Especially with free or nearly free money.

[Silverhatch]

I never do either, a "decent" monthly payment for me is around $400/month. I don't know anyone that has enough equity in their car to trade it in and have a decent car payment on a $25k car financed at 3 years.

[Troll]

If you must know my business, my Miata is paid for and should be worth about 10K on trade... was going to put another 10K down and finance about 15K for 36 mos (@ 0%) = 416 / month.
I do not drive the Miata that sits in my garage now. I am not convinced that I need to shell out 10K cash and another 15K over the next three years to have a brand new Mustang sitting in my garage in the spot that the Miata sits now. :capeche?:

[Mark Aubele]

No one asked your business, I think the responses were just due to you calling 80% of the forum dumb. Buy it cash if you want, you are paying for it either way.

Really don't understand where all the hate comes in regards to financing. I can have 20k sitting in investments making money for me, or I can pull it out and put it down on a depreciating "asset". I'll take the nearly free money. Both truck and car are financed at like 2 and 3%, seems silly to me not to use that to my advantage.

[PaxtonShelby]

Both of you make sense. Right or wrong, I think it comes down to how big of a monthly payment people are comfortable with. Sure, you can use the free / nearly free money Ford is lending you, but then you are facing 3-5 years of $600-$800 a month. If you are disciplined and have that much available cash flow for a monthly payment then you will do well. If it is easier for you to put a chunk down ( cash or trade or both ) so your monthly payment won't keep you up at night then that's fine too. Like was said - you are paying for it either way.

[Troll]

You should never put yourself in a situation where you are upside down... free (or next to free) money or not. Say you finance 30,000K at 0% for 84 months and you (God forbid) crash it the very next day. That car is worth 25,000 the moment you drive it off the lot. Your insurance company might pay you 25,000... probably more like 75-80% of 25,000. Now, you are 10,000 in the hole on your 100% financed (for free) car.

[Mark Aubele]

You should never put yourself in a situation where you are upside down... free (or next to free) money or not. Say you finance 30,000K at 0% for 84 months and you (God forbid) crash it the very next day. That car is worth 25,000 the moment you drive it off the lot. Your insurance company might pay you 25,000... probably more like 75-80% of 25,000. Now, you are 10,000 in the hole on your 100% financed (for free) car.

I never make deals where I am upside down, but say you crash your 30k car on the way home and it's now worth 25k. You still lost 5k. Not sure where the 10k came from. They don't give you back 30k because you roll deep and paid cash.

[sutyak]

I never make deals where I am upside down, but say you crash your 30k car on the way home and it's now worth 25k. You still lost 5k. Not sure where the 10k came from. They don't give you back 30k because you roll deep and paid cash.

$30K - $5K - (80% of $25K) = $20K so $10K difference.

Anyway I think you are both much closer in point than you think, and it's not worth arguing who's method of buying a car is the best. The point is not to buy what you can't afford, meaning as long as you have the cash in the bank to cover the cost of the car it doesn't really matter whether you buy 100% up front of play the "game" of 0% financing while making 1.05%/yr in your savings.
I also play the credit game; charging when I get some % back, then immediately pay off the balance. When it comes to a car, I feel much better having that title in my hand rather than make maybe $200 in interest over a few years while paying off the car.

At the end of the day just remember these are toys and don't get yourself neck-deep in debt! (not directed at mark or troll etc.) Put that mod-money towards extra payments.

[Troll]

Agreed! I started this original thread and re-upped it the other day to sing the praises of Ford offering 0% financing. That's all.
If you are not happy with Ford offering 0% financing or you are upset that you did not receive 0% financing when you bought your vehicle, then move along.
:happy:

[Mark Aubele]

$30K - $5K - (80% of $25K) = $20K so $10K difference.

I see where the 10k comes from now. It was so far from reality I didn't see it.

Then when you wreck your car pulling out of the lot you will lose 10k cash. But now we sound like an insurance commercial.

[Dan B.]

The point is not to buy what you can't afford,

That's why I DD a 26yo Ford Ranger.

[Terminated]

Beater cars and no payments FTW

[sutyak]

Beater cars and no payments FTW

Beaters FTW. That's my neighbor's bronco. Hasn't moved in years.

[Tom]

The best way to buy a car is to have an investment that pays enough interest to cover the loan payments, that way you never have a loss. This way you make your assets work for you without losing value.

If you put $100k at 5% interest, you would make about $400 a month from it, get a 72 month 0% interest loan and you could buy a mustang for $400 a month.


That makes it seem kind of dumb to give up 50% of your $100k to buy the car up front doesnt it?

[sutyak]

The best way to buy a car is to have an investment that pays enough interest to cover the loan payments, that way you never have a loss. This way you make your assets work for you without losing value.

If you put $100k at 5% interest, you would make about $400 a month from it, get a 72 month 0% interest loan and you could buy a mustang for $400 a month.


That makes it seem kind of dumb to give up 50% of your $100k to buy the car up front doesnt it?

I want to know where you have a single-sourced 5% guaranteed RIO, after tax. An investment reliable enough to actually do this, with no market volatility. What single investment are you willing to put $100K into and remove $400/mo from with no dips?

Also, assuming your are able to make a constant 5%/yr for 6 years, if you take out that $400/mo you're missing out on an additional $4K interest. I suppose $4K is better than $30K, but I'd still like to see this investment you speak of.

[Stangman701]

I want to know where you have a single-sourced 5% guaranteed RIO, after tax. An investment reliable enough to actually do this, with no market volatility. What single investment are you willing to put $100K into and remove $400/mo from with no dips?

Also, assuming your are able to make a constant 5%/yr for 6 years, if you take out that $400/mo you're missing out on an additional $4K interest. I suppose $4K is better than $30K, but I'd still like to see this investment you speak of.

I was thinking the same thing. Admittedly I know next to nothing about investing though. I work for my money then let it just relax in the bank, lol.

[Tom]

Large cap stock funds average 5+% over 5 years.

I didn't mean to literally pull $400 out of your investment every month, it balances out at the end.

[Terminated]

Or drive a car that is paid off and let that interest compound.

[Tom]

Or drive a car that is paid off and let that interest compound.

This is an even better solution, but i was just talking about paying $30-$40k up front vs financing.