Did you finance or pay cash?

[710-oil-614]

Just out of curiosity, why are you comparing it with the assumption you'd cash out your bond at 12 months? Did you pay your loan off at the 1 yr mark?

I've still got I-bonds from 2004. I have I-bonds paying as low as 4.56% and as high as 8.36%

My original post that this guy responded to said I am paying cash because I am unsure if I am going to keep the Bronco long term and want the easiest transaction if I choose to sell.

This guy comes in swangin telling me I don't know about I-bonds and saying I can make 7.12% in year one completely negating the fact there is a legit chance I don't keep my bronco hence the reason for wanting flexibility of ownership, and two - he suggested I invest in something caps at less than 25% of the sale price for my Bronco.

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[22OBX]

Financed, but put down a pretty hefty down payment. About half.

Same here

 

[SevenT]

I wanted to pay cash, but my dealer said I wasn't "allowed" to do that here in Canada because it'll be flagged for money laundering....

The dealership had to run my credit before I could write the check for $56,000. Same rules here in the U.S. on transactions over $10,000.

 

[JohnnyBronco]

Dave Ramey's 5 keys to gaining power over your purchases:
1. Wait overnight.
2. Consider your buying motives.
3. Never buy anything you do not understand.
4. Consider the "opportunity cost".
5. Seek counsel.

Ford's 5 keys
1. Wait over a year
2. Consider locomotion
3. We don't understand what we sell so why should you?
4. Opportunity cost was $100 and fully refundable
5. Join a forum and get all the free advice in the world

 

[StopsForTacoTrucks]

My original post that this guy responded to said I am paying cash because I am unsure if I am going to keep the Bronco long term and want the easiest transaction if I choose to sell.

This guy comes in swangin telling me I don't know about I-bonds and saying I can make 7.12% in year one completely negating the fact there is a legit chance I don't keep my bronco hence the reason for wanting flexibility of ownership, and two - he suggested I invest in something caps at less than 25% of the sale price for my Bronco.

A completely logical reason to compare at the 12 month mark, then. I read these things with the attention span of a

 

[710-oil-614]

A completely logical reason to compare at the 12 month mark, then. I read these things with the attention span of a

I fully understand that paying $45k for the Bronco is not the best financial decision. Hell, buying a Bronco is a terrible financial decision, but I'm doing it because I want to not because it makes smart financial sense.

I don't need someone on here to tell me that.

 

[jnew71]

Not to hijack, but where are you seeing a Penfed apr of .99%.
I plan to finance, but haven't seen rates that low.

Nope - my score is over 800 and I couldn't get a rate close to that when I bought my daughter's car.

 

[MayhemMike]

Excellent credit gets you a terrific rate. Automatic twice a month withdraw payments lesson the over all cost of the loan. Meanwhile, the cash left over from only making a down payment gets invested, and pays a modest 5-8%. The gain beats the loan interest. Now the Bronco changes one factor. You always get a better vehicle cost if you tell the dealer you are financing rather then paying cash. If you want or can pay cash, do it with the finance company or bank after you buy the car, not with the dealer.

 

[Seacat]

Cash, when or if it ever gets delivered.

 

[MayhemMike]

I fully understand that paying $45k for the Bronco is not the best financial decision. Hell, buying a Bronco is a terrible financial decision, but I'm doing it because I want to not because it makes smart financial sense.

I don't need someone on here to tell me that.

In my advanced age I have learned many lessons. One lesson I have learned is sometimes you make decisions with your heart and not your head. Those decisions are what make life fun. Enjoy life while you can.

 

[StopsForTacoTrucks]

I fully understand that paying $45k for the Bronco is not the best financial decision. Hell, buying a Bronco is a terrible financial decision, but I'm doing it because I want to not because it makes smart financial sense.

I don't need someone on here to tell me that.

Buying and keeping, probably. In today's world, flipping a Bronco the day after you get it (financially, not geometrically) probably has one of the best ROIs available today. Who'd have thought you'd see the day used cars sold at a premium to new just due to availability. Not like Ford has a lock on it. C8 Corvettes were the same. I've gotten several unsoliticed offers on both my car and various properties. If I had any sense I'd eject the last rental property now, but I just won't listen to me and do it.

 

[brianbrn]

I saw a thread earlier today with people comparing interest rates and it had quite a few members active in the conversation. I also had read an article talking about a high number of bronco owners paid cash. Curious what the percentage really is......

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I'm fortunate to have a paid off 2019 loaded out Tacoma with low milage that will provide a significant balance reduction. I will most likely finance the balance since I've paid cash for about $10k worth of accessories that are laying in my garage.

 

[710-oil-614]

Buying and keeping, probably. In today's world, flipping a Bronco the day after you get it (financially, not geometrically) probably has one of the best ROIs available today. Who'd have thought you'd see the day used cars sold at a premium to new just due to availability. Not like Ford has a lock on it. C8 Corvettes were the same. I've gotten several unsoliticed offers on both my car and various properties. If I had any sense I'd eject the last rental property now, but I just won't listen to me and do it.

And to be clear - I am NOT buying and flipping my Bronco. I just have 3 young kids and am not sure it's going to be the long term vehicle for our family. We're giving it a go.

IF I do decide to sell it. I will attempt to sell it for what I paid (+ tax) and any major accessories I add (weathertech liners, new leather wrapped wheel, rock rails). I would definitely not being attempting to make a buck on it.

 

[BassMaster]

I financed mainly because of low interest rates, and being able to grow that money elsewhere.

Agreed
money is cheap right now. Invest it somewhere else rather than a depreciating asset.

 

[DrewBronc21]

Paying cash is an emotional thing and people continue to do it when the math is proof that it’s wrong.

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