new f150!

[RMW]

Who in the hell is financing a vehicle for 8 years?!!!! Never heard of such a thing

People are dumb as hail!

[flywise]

Who in the hell is financing a vehicle for 8 years?!!!! Never heard of such a thing

People are dumb as hail!

Probably just about everyone who has bought one since it has been an option.......even if they won’t admit it

[Beargrasstx]

I prefer not having a truck note. That way when the truck breaks down, needs maintenance, or tires then it is no big deal. Plus, not tied to a job or income to make payments etc. You have freedom you never realize when the things that you own don't own you.

Vehicles are not a good investment. It is a status quo for most on what is needed versus what is owned. Buying new is an even worse investment. I have done the things mentioned before so not preaching down. I plan on being wiser in the future.

[bbqfan5909]

You might ask your advisor what the term "depreciable asset" means. That said, vehicle driven off the lot will lose 10k the day papers are signed. I also refuse to use an advisor pushing his product, its very simple to invest for pennies on the dollar.

We're talking about averaging 8% over 8 years. Again, if you aren't getting that, you might want to seek another advisor. Just sayin.

Let's drop it to only a 5% return...you'd only make about $7000 on your investment.

Drop it 4%...you're still making a little over $3000

We can explain it to you, but we can't understand it for you.

[WItoTX]

Going to hit y'all with some math...

You find a $65k truck you like. You have $65k in hand.

You pay outright and you have no more in hand.

You finance $65k at 3% for 96 months...total with interest is $73,193. You take your $65k in hand and invest it in something that makes 8% over the same term and take out $762 per month to pay the auto loan. At the end of the loan, you still have $21k in your investment AND a car that's paid for.

Now that I think about it, just doesn't make sense!

Now, if you can't make 8% in that 8 year period, you might need to find another investment advisor!

That theory works for those who want to have the means to do so. Most folks Don't have $65k in their bank to invest and then just peel out a little $$$ on the side to pay the car note each month. Nevermind the fact that if the market tanks, their $65k is gone, and they have no way to pay that note now.

So how to people get into a position where they can do what you say? Pay off all their stuff, and then create a nest egg. Enter Dave Ramsey.

Surely you don’t think that “0%” interest rate came free? And if you are paying it off early on 8 yr, then why are you getting an 8 year? It’s all a game, buy what you can afford.

LOL, I am glad i'm not the only one who saw that. If I was a dealer, everything would be "0%".

[CBHunter]

I don't think you guys understand what I'm saying...

I'm not saying go out and buy a car just because. If your car is running well, it makes way more sense to keep driving it. I'm saying if you are buying a car, AND the rates are right, it almost ALWAYS makes more sense to finance. There are also other factors to consider as well. If you drive a lot, is your car going to last for the term of the loan?

I just showed you guys the reason in the example above that financing makes sense.

Also, here re some of the investments I currently have (the ones in bold). You CAN average above 8% if you (or someone helping you) knows what they are doing.

[txtrophy85]

You might ask your advisor what the term "depreciable asset" means. That said, vehicle driven off the lot will lose 10k the day papers are signed. I also refuse to use an advisor pushing his product, its very simple to invest for pennies on the dollar.

That $10k number has been used for the last 20 years.

In aot of instances buying new makes much more sense than buying used

[WyoBull]

Buying a vehicle outright isn't smart unless the finance rate is more than what you can make in investments. That just isn't the case right now. Some people have a real hard time understanding this. Even the mega wealthy know to finance things because they can put their money to work elsewhere and come out ahead.

You are absolutely right about that CBHunter, however, there is such a thing with a lot of people called peace of mind in being debt free and that is something that is really hard to put a price on.

On one hand I was cursed by my parents for raising me in a fiscally conservative environment where when we wanted something, we saved up a paid for it. I say cursed because I see a lot of guys around me with all the toys and every one of them is on the payment plan. I just can operate that way but certainly could if my mindset was different. I have also seen a lot of people go bust and lose it all when the economy goes down (especially up here in oil and gas).

I guess in the end I like to sleep at night knowing I own everything I have and no wolves are circling out in the pasture waiting for something to hit the fan.

As far as the price of new trucks, everything is higher today and won't change anytime soon. Been grocery shopping lately? Just to eat costs an arm and a leg.

[CBHunter]

You are absolutely right about that CBHunter, however, there is such a thing with a lot of people called peace of mind in being debt free and that is something that is really hard to put a price on.

On one hand I was cursed by my parents for raising me in a fiscally conservative environment where when we wanted something, we saved up a paid for it. I say cursed because I see a lot of guys around me with all the toys and every one of them is on the payment plan. I just can operate that way but certainly could if my mindset was different. I have also seen a lot of people go bust and lose it all when the economy goes down (especially up here in oil and gas).

I guess in the end I like to sleep at night knowing I own everything I have and no wolves are circling out in the pasture waiting for something to hit the fan.

As far as the price of new trucks, everything is higher today and won't change anytime soon. Been grocery shopping lately? Just to eat costs an arm and a leg.

I definitely understand that. The best thing is to finance and invest, but have enough to cover all debts. I am almost to that point in my life. The only one I can't cover yet is my house. At least not without my retirement funds.

[gingib]

The best part, idiots are buying brand new vehicles in these times.

Financing them all and 80% of people can't afford them. I laugh

[gingib]

Going to hit y'all with some math...

You find a $65k truck you like. You have $65k in hand.

You pay outright and you have no more in hand.

You finance $65k at 3% for 96 months...total with interest is $73,193. You take your $65k in hand and invest it in something that makes 8% over the same term and take out $762 per month to pay the auto loan. At the end of the loan, you still have $21k in your investment AND a car that's paid for.

Now that I think about it, just doesn't make sense!

Now, if you can't make 8% in that 8 year period, you might need to find another investment advisor!

Who in the hell is financing a vehicle for 8 years?!!!! Never heard of such a thing

People are dumb as hail!

Broke arse people. American way. Living in debt and on plastic.

But hey I got a $70k truck

[CBHunter]

Broke arse people. American way. Living in debt and on plastic.

But hey I got a $70k truck

Not sure why you were quoting me...

I was explaining why it makes more sense to finance IF you have all the money to pay cash AND the interest rate is right. I really can't help it if you are too stupid to understand it.

[WItoTX]

Broke arse people. American way. Living in debt and on plastic.

But hey I got a $70k truck

Yep. Then someone tells them it's better to take out an 8 year loan and invest their money they never had in the first place because the rate of return is better than the interest rate on the loan. And even though they never had the money in the first place to invest, they rationalize that it is better to buy that new truck because on an 8 year loan because someone in the internet said they are losing money by not spending it.

[CBHunter]

Yep. Then someone tells them it's better to take out an 8 year loan and invest their money they never had in the first place because the rate of return is better than the interest rate on the loan. And even though they never had the money in the first place to invest, they rationalize that it is better to buy that new truck because on an 8 year loan because someone in the internet said they are losing money by not spending it.

Again, I can explain it to you, but I can't understand it for you.

The example assumes you have the money to pay cash for a vehicle.

[jaime1982]

Yep. Then someone tells them it's better to take out an 8 year loan and invest their money they never had in the first place because the rate of return is better than the interest rate on the loan. And even though they never had the money in the first place to invest, they rationalize that it is better to buy that new truck because on an 8 year loan because someone in the internet said they are losing money by not spending it.

You may have to re read his post.