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Cash Vs Bank

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Wildtrak
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Wildtrak
No body can give correct answer because it's a brand new, but lets compare it with Jeep, Wrangler hold it's value so for 50K you may lose $8-12 K
True but after that first year there may be few Broncos on the dealership’s lots because the factory is likely going to still be filling reservation orders. Therefore, the demand may be high helping to increase the resale value even more.

This is assuming one would want to sell after a year.
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TXCarFan

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So many variables with individual finances... so, what works for one may not be the best option for the next guy. Personally, I'm cashing in some stale investments, adding a bit of cash, and cashing in some Bitcoin (although, that will dependent on where it is at the time). If my business takes off by then (blasted COVID), then I may borrow since the interest rates will most likely still be low... and use the cash for the business... we will see. All of my answers today may change completely by the time my Badlands is ready to buy... because ... you know... COVID.
 

Velociraptor

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Dealers make most money off of financing and misc fees. Cash is actually worse for them now. That said, I will be trading a vehicle and paying cash for the balance, IF I decide to buy a Bronco after the build and price goes live. I'm looking at a 2DR Badlands with tow, Sasquatch, and Lux package. Depends on how much all the extras add up to. Whether I want to pay that price.
 

PDiddy

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We have financed all our previous cars with down payments and then paid off early. This will be the first vehicle we pay cash for. It’s also the first time we are in the position to do that.

you can usually get really low rates, financing, so I don’t think it’s ever a bad option, unless you over extending yourself.
 

LarryZiegler

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Why put 50% down with rates under 1.9%? Would you put money down on a 0% loan? Should be very easy to make 5% or more on that cash.

I’m curious because there seems to be so many differing opinions on this. To me, the math tells me to put very little down on low apr loan. The difference between a $50k Loan @ $1.9% with nothing down and putting 50% down payment is only about $1,000 In interest over the term. you can make much more than that in just about any type of investment
I am in total agreement with you, but the thing to remember is that there are family budgets that don’t support the loan payment on a $50,000 no interest loan, thus the need for making whatever down payment is necessary, or the taught idea that any debt taken on is a bad thing no matter how good the terms might be. We all are in different places with different family dynamics and educational backgrounds that formulate how we live our lives.
 

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siggy

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Bought wife a new expedition at Christmas. I thought she set up auto payment, she thought I did. Did a refi on house in march and almost lost great rate as three months no payment on the expedition blew my credit up. Immediately paid it up to date and filed with each of the three credit bureaus to get it taken off. Need to check and see if my score recovered.
And why should the credit reporting agencies remove this? You didn’t pay. Forgot shouldn’t be a valid defense, otherwise everyone would do this.
 

Clint Callahan

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I won't have enough cash on hand to buy it outright even with the wait, but the fact I have to wait at least a year for it, I'm okay with it because the more I can save for a down payment, the more my wife gets okay with the lower monthly financing

My plan: After add-ons, I'm expecting my cost to be closer to 45K, and I'm doing 25% and financing the rest. I'll be doing that 25% by saving and trading in the old college car which isn't worth much. I don't really have a choice though, unless I buy a winning lotto ticket. I'm younger than probably most in this forum so I'm just starting out. First ever brand new car!
I’m in the same exact boat as you amigo. I need my wife to wAnt this as bad as I do!
 

WildTrak

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This thread reminds me of all the $$$$ i have wasted on car payments over the years. Some were worth it, others I don’t think i can remember a single day with.

There is nothing wrong with stretching to buy something you really want, just make its what you want, you will get a lot of use out of it and make some great memories with it.

Bronco fits that in my opinion. Just use it for what it was designed for.
 

BeerForMyHorses

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This thread reminds me of all the $$$$ i have wasted on car payments over the years. Some were worth it, others I don’t think i can remember a single day with.

There is nothing wrong with stretching to buy something you really want, just make its what you want, you will get a lot of use out of it and make some great memories with it.

Bronco fits that in my opinion. Just use it for what it was designed for.
I'm wanting my kids first memories of riding in Dad's truck to be in the back of the bronco with the top off, or riding down a dirt road to grandmas place. I'd love to teach them to drive a stick in this thing if I can get the 2.3L to last that long!
 

BP Bronco

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Why put 50% down with rates under 1.9%? Would you put money down on a 0% loan? Should be very easy to make 5% or more on that cash.

I’m curious because there seems to be so many differing opinions on this. To me, the math tells me to put very little down on low apr loan. The difference between a $50k Loan @ $1.9% with nothing down and putting 50% down payment is only about $1,000 In interest over the term. you can make much more than that in just about any type of investment
Why 50% down? I don’t like owing more on deprecating items then there are worth. I don’t think Ford will offer 0% on the large Broncos at introduction. 150,000 have been reserved and Ford doesn’t need to offer incentive rates unless a lot of people don’t follow thru with their orders.
Investment aren’t without risk.
I’m not a fan of monthly payments or debit.
 

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wilmerfjohnson

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Cash in full. If I can't pay cash for something that depreciates, then I can't afford it.
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I agree, take no loan on a vehicle - I've paid cash/check for every vehicle so far. I have reservations on 2 Broncos, a First Edition and a base, so I am gonna have to sign notes for both. I'm taking this time to clean up my credit reports, and make very good friends with the manager at my local bank branch.
 

wilmerfjohnson

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I'm wanting my kids first memories of riding in Dad's truck to be in the back of the bronco with the top off, or riding down a dirt road to grandmas place. I'd love to teach them to drive a stick in this thing if I can get the 2.3L to last that long!
 

wilmerfjohnson

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Good for you! Yes, youngsters can enjoy a first Bronco experience. Mine was in 1984, my parents surprised me by bringing home a plain base Bronco II. I spent the night sleeping in the back with the seats folded down.
 

Frank N

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If cash is King, liquidity is god....good credit should get a sub 2 rate from a credit union.
 

DrewBronc21

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Why 50% down? I don’t like owing more on deprecating items then there are worth. I don’t think Ford will offer 0% on the large Broncos at introduction. 150,000 have been reserved and Ford doesn’t need to offer incentive rates unless a lot of people don’t follow thru with their orders.
Investment aren’t without risk.
I’m not a fan of monthly payments or debit.
To each their own, but you’d rather take your cash and put it into a depreciating asset? The Truck will depreciate the same whether you finance a little, half or all. With good credit a loan from a credit union should be less than 3% and you can easily make that on your cash just about anywhere you put it and you get to hold on to your cash So you’re not really in debt. You can make extra payments any time. The increased monthly payments come from the cash you kept for yourself, rather than tied up in the truck.

I respect the emotional position people take on wanting less payment, no debt, etc, but the math indicates we’d be better off taking out low interest loans with little down payment.

Then again, most of us are buying brand new Broncos, probably at a markup and will depreciate $5k by driving off the lot, so we aren’t making the best financial decision anyway :)
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