Man I am lovin' my new '15 Limited! I gained a buck and a brand new truck!

[Dr Plastic]

I still can't get over the deal I got. I traded my Ruby Red 2013 XLT FWD with 202A pkg, Nav, Cl. III Tow pkg and power lift gate for a 2015 Ruby red Limited with Nav, Cl. III Tow pkg and power lift gate. The great thing about it is I had so much equity in the '13 that with X-plan, Rebates and money from the trade, I was able to slam down over $8000 for the down payment. My payment dropped $11, My insurance went up $10. I gained a buck and a brand new truck!


LIFE IS GOOD!:biggthump:biggthump:biggthump:biggthump

 

[wifes2011xlt]

How much longer did you have to finance it?

 

[Dr Plastic]

My '13 XLT was almost half paid off. I put $10k down and was never upside down on the note. It was financed for 6 years.

 

[cwescapexlt4x4]

nice job and enjoy the new ride.
I think we all forget how much at the end it costs (myself is very much included) with financing.

 

[Halwg]

My '13 XLT was almost half paid off. I put $10k down and was never upside down on the note. It was financed for 6 years.

6 years, that's insane! I would never finance a car longer than 4 years, and 3 is what I normally do. I can't even imagine financing a car for 72 months.

 

[wifes2011xlt]

It's not so much the 6 year term I don't like but if the new suv purchase was also financed for 6 years, you're essentially paying interest on a car loan for 9 years (3 years on first loan and another 6 years on second). Yes, you save a buck a month but over the additional 3 years of financing, the 36 bucks saved probably won't make much of a dent in the overall cost of 36 additional monthly payments.

Some like to have a new car every couple or 3 years though and don't mind the cost. Others like not having payments so they don't buy a new car that often and let their cars get old and deal with repairs. Others are lucky enough to pay cash and own outright. All depends on your own personal situation.

 

[japes]

6 years, that's insane! I would never finance a car longer than 4 years, and 3 is what I normally do. I can't even imagine financing a car for 72 months.

If you get a low interest rate over those 6 years you do much better with a long term loan, a dollar has lower value in 6 years. If you had a $400 car payment that you got in 2009, adjusting for inflation today that $400 payment is actually costing you $366.

I really can never understand people paying off cars when 0% or 1.9% financing exists. Use other peoples money, people don't get rich using their own money.

You need a Gap policy early on (usually $1-3 a month) but even that is beneficial to you. If you're upside down on your car and it is totaled the gap pays off the loan and you're free. Where as someone that puts a large payment down has an accident and totals the car actually incurs a real pocket loss where someone who finances walks away with only the payments they have paid and the insurance covers the rest.

 

[BKennedy]

Last year, I purchased a used Ranger for my daughter. I got a 1.8% loan on around $17000 out the door purchase. I did the math and a six year loan cost me about $1000. That's only $167 per year, $14 per month. Why would I take the money from savings where I can use it as needed, when I can borrow it for next to nothing?

 

[SHAD0W]

As long as you got a new truck, got rid of the problems that you may have had in your 2013, and your payments/insurance are not adversely affecting your comfortable retirement/current lifestyle... then who cares!

Enjoy your new Ruby Red

 

[sloop]

the affluent do NOT run out and spend money on a car just because of a low interest rate

if you want a new car, get it - just don't try to justify it by saying that financing something you don't need is a good idea

there are worse things to spend your money on - but it sounds like you love your new explorer - when you know the price you pay for that, go for it if its a price you are willing to pay

 

[adamjeeps]

I have no problem financing for 6 years as long as you keep it for 6 years or more and the rate is under 5% or so. If its under warranty of some type while you are paying for it, even better. Now that is just a gamble to buy the extra warranty or not, but with all the tech and seemingly cheaper build qualities these days...

 

[Dr Plastic]

Got a 3.5% for 6 years. I don't waste my money on extended warranties because I usually trade up every three to four years or so!

 

[HughCares]

Got a 3.5% for 6 years. I don't waste my money on extended warranties because I usually trade up every three to four years or so!

If you are going to have perpetual payments and change vehicles every 4-6 years, you may as well lease instead of purchase, especially if you are taking out 6 year loans. Personally, I would never lease, nor would I finance a vehicle for more than three years regardless of what the interest rates might be. I would never, ever purchase a vehicle based on what the bank or finance company says I can afford either. Sheer stupidity to put yourself in a precarious financial position in case you lose your job or the economy turns for the worse. That's why there are so many people defaulting on their loans and mortgages....they just can't help themselves...too many people living/spending beyond their means....and just one or two steps away from losing it all.

 

[wifes2011xlt]

IMO, if you're focused on that small number, i.e. "it's only $5 more a month" or "interest rate is only 1.9%" or "your payment comes out to $15/day. just pack your lunch or skip the starbucks every once in a while", you've fallen for the oldest trick in the book. Any decent salesperson will try to get you to focus on the lowest number. It would be so much harder to meet sales quotas if they just stuck to the total cost.

With that said, responsible borrowers make the world go round. Can you imagine if everyone paid cash for everything? The economy would collapse.

 

[BKennedy]

If you are going to have perpetual payments and change vehicles every 4-6 years, you may as well lease instead of purchase, especially if you are taking out 6 year loans. Personally, I would never lease, nor would I finance a vehicle for more than three years regardless of what the interest rates might be. I would never, ever purchase a vehicle based on what the bank or finance company says I can afford either. Sheer stupidity to put yourself in a precarious financial position in case you lose your job or the economy turns for the worse. That's why there are so many people defaulting on their loans and mortgages....they just can't help themselves...too many people living/spending beyond their means....and just one or two steps away from losing it all.

Unless one is independently wealthy, and/or put every dime in the bank or under their mattress, anyone would be found in a precarious financial position if they lost their job.

It was obviously worth it to the OP to have the same or slightly payment, to get a new vehicle. Leases do not work for a lot of people due to the mileage limitations.

The few times I paid cash for a new vehicle I regretted it. I tied my money up in a vehicle when I could have tied someone else's up for a very small percentage. I could have purchased that Ranger I bought my daughter outright, but I wanted to keep my money where I can use it if needed. With the low rate I got, it was cheaper to finance it for six years than three. I am not talking about the monthly payment, but the overall cost of the vehicle.

Everyone's financial situation is different and I don't knock them for deciding what works for them.

 

[HughCares]

Unless one is independently wealthy, and/or put every dime in the bank or under their mattress, anyone would be found in a precarious financial position if they lost their job.
QUOTE]

Not true....only those that were living beyond their means to begin with would find themselves in a precarious position. Those that made prudent financial decisions regarding their needs versus their wants would be much better suited to ride out the storm then those on the brink of self destruction. My wife and I made a point of paying off our mortgage as soon as possible (I was 47) and for 5 years now, we have had no payments on anything with the exception of a $10K balance on our line of credit and we own a 2012 Ltd EX and a 2015 CX-5. Could we have purchased a much bigger home and keep the equity and take out another mortgage? Yes, of course, but we don't need a bigger home and as a result, today we are in a position to ride out any storm without fear of losing our home or vehicles if either one or both of us were to lose our jobs. You don't realize how empowering that feels if you've never been there. Anyone fixated on the size of payments they can afford every week/month versus the amount of debt and risk that they are actually putting themselves into, quite frankly deserve what they get if/when all hell breaks loose. A reasonable retirement date and lifestyle (if they ever could afford to) will also just be a pipe dream for them. It's just about being financially responsible.....There are likely many people on this forum alone that purchased/leased their Ex when in reality they should really have only been considering an Escape or a lesser vehicle....Never, ever base a decision on your "current" ability to pay....but base it on your entire financial picture, your net worth, AND the most important question to ask yourself first....if I were to make a decision to purchase/lease anything, what were to happen if I or my spouse were to lose our job.
THAT is a piece of the decision making analysis that should be taken into consideration that too many people seem to be missing...Live happily within your means and not beyond them...stop trying to keep up with the Jones's.
Now stepping off of my soapbox.

 

[Dr Plastic]

Man aren't you guys a bunch of killjoys! I post my happiness about getting an new Explorer and I get beat down about financing and financial crap. Well Get off your high horses and quit telling others how to live their lives and how to buy things!

I am not rich but I do have a job that I make comfortable living at and do not need to fear the loss of my job because some college educated yuppie thinks he can do it better than me or one that can be outsouced.

You all need to get a grip and ease off on the rhetoric!

 

[rok8man]

I still can't get over the deal I got. I traded my Ruby Red 2013 XLT FWD with 202A pkg, Nav, Cl. III Tow pkg and power lift gate for a 2015 Ruby red Limited with Nav, Cl. III Tow pkg and power lift gate. The great thing about it is I had so much equity in the '13 that with X-plan, Rebates and money from the trade, I was able to slam down over $8000 for the down payment. My payment dropped $11, My insurance went up $10. I gained a buck and a brand new truck!


LIFE IS GOOD!:biggthump:biggthump:biggthump:biggthump

I am glad to hear about your new purchase. I am loving my Tuxedo black Ford Explorer Limited. I got the one with 301A pkg, I have everything except the Adaptive Cruise Control, Lane Keep Assist and the Automatic rain sensing wipers. Loving the cooled driver seats. They will be used a lot in the Texas heat.

 

[japes]

Wow... he was happy about his purchase. He's the one that needs to live with it not any of you. I find people that think they know best how someone else should spend their money are the ones most unhappy with the choices they make when they spend their own. The deal was what worked best for him, it may not work best for you or you all just like being a self appointed internet genius and telling people how to run their lives because in your real life you don't get to do that. A simple that's nice new truck is all you have to say, if you don't have anything nice to say don't say it. It take more effort to critize and bully someone than not you went out of your way to do it.

 

[wifes2011xlt]

No way to know if it was a bad deal or not. OP never posted the actual numbers. He could have gotten $1,000s in incentives for all we know. What I will say for 100% certainty is that while he may have gained a truck, he did NOT gain a single buck when all is said and done. In fact, he is deeper in debt than when he started.