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Should I give up the dream or is there hope?

Joshua_D_44

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Ok, so without giving away too much of my own personal info, I recently got really discouraged about whether or not I’ll be able to afford a bronco or if it will be a good financial decision. My wife went to look at a new Nissan Versa and for an $18,000 car, they wanted an insane monthly payment and had a crazy high interest rate. We ended up walking away because the deal seemed ridiculous. Now, her situation and mine are pretty different, but that still discouraged me quite a bit. I’m like everyone else waiting for B&P to see what will fit in my budget, but I’m not planning on going over $42k or $43k. Really I’d like to stay below $40k, but I don’t know if that will be possible after seeing the pricing survey. I’m hoping to put somewhere between 48% and 52% down and my credit is over 700... I just don’t want to end up with a huge car payment and a house payment. I figured putting that much down would really help the payments be super manageable, but after seeing what Nissan wanted for a payment and interest rate on a far less expensive car, it kinda discouraged me. Anybody who wants to completely destroy my dream before my hopes get too high or give me some encouragement is welcome to do so.
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EvlNvrDys

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I'm a tad bit confused. What do you consider to be an outrageous payment?

If we use a $40k vehicle, you put down 50% ($20k). So to finance that over say 60 months, payment is around $360 (depending on interest). And if I guess further, if you have 50% to put down on it, I wouldn't expect that payment to be too much.

So what am I missing?
 

L8apex

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You can figure out your monthly payment easy enough.
Ford Bronco Should I give up the dream or is there hope? 1599059727861


PV = Financed Amount = Sales Price (Including fees) + Taxes - Down Payment
r = APR / 12
n = # of months

Edit - having this set up in Excel and bringing a laptop to a dealer, you can also quickly see the total amount you'd pay on a loan and how much interest. Very useful when comparing different incentives and interest rates which are sometimes mutually exclusive (3K off OR 1.9% financing).
 

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You're not the first person I've heard recount an insanely high interest rate from dealer financing. Like 2008 financial crisis high. I don't know if the state of the economy is really that bad or if dealers are taking advantage of what they perceive as a necessity purchase (cuz who would be buying a car now?)

All I can say is, the world could change drastically between now and when you have to make a decision purchase on the Bronco. If you really want it, plan on making the financial decision at that point and don't be afraid to walk away if it doesn't make sense.
 

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Ok, so without giving away too much of my own personal info, I recently got really discouraged about whether or not I’ll be able to afford a bronco or if it will be a good financial decision. My wife went to look at a new Nissan Versa and for an $18,000 car, they wanted an insane monthly payment and had a crazy high interest rate. We ended up walking away because the deal seemed ridiculous. Now, her situation and mine are pretty different, but that still discouraged me quite a bit. I’m like everyone else waiting for B&P to see what will fit in my budget, but I’m not planning on going over $42k or $43k. Really I’d like to stay below $40k, but I don’t know if that will be possible after seeing the pricing survey. I’m hoping to put somewhere between 48% and 52% down and my credit is over 700... I just don’t want to end up with a huge car payment and a house payment. I figured putting that much down would really help the payments be super manageable, but after seeing what Nissan wanted for a payment and interest rate on a far less expensive car, it kinda discouraged me. Anybody who wants to completely destroy my dream before my hopes get too high or give me some encouragement is welcome to do so.
I recommend that you sit down and work the numbers first before the Build goes live so you determine if you can afford it period. Then don't stress before the build goes live. Once it does compare what you first need in the bronco and then want you want. Reconcile the Build estimate against your original purchase limit to see if it is realistic. Keep in mind that the bronco is not purpose built for a frugal, common sense family vehicle. And it is not an investment (well unless you have a pristine 66 to 77 model) that being said, you only live once and you did use the word, "dream". If you are not going to use it for off road very much, maybe there are other cars to consider. But again work the numbers and stay within them before you see all the bells, whistles and such on the Buils site otherwise the emotion will get the better of you. Good luck!
 

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Aren't Nissan dealers known to be pretty predatory anyway? I'd say run your numbers and be comfortable with whatyou can afford. There's plenty of finance calculators out there where you can change amount, interest rate and length of loan. Also have you talked with your bank about a loan? Always shop around for the best rate since its your money.
 
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Joshua_D_44

Joshua_D_44

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I'm a tad bit confused. What do you consider to be an outrageous payment?

If we use a $40k vehicle, you put down 50% ($20k). So to finance that over say 60 months, payment is around $360 (depending on interest). And if I guess further, if you have 50% to put down on it, I wouldn't expect that payment to be too much.

So what am I missing?
That’s the fun part, we got a home loan for more than the sell price of the house to make some improvements to the house and then decided to use some of it towards a down payment on a vehicle. I have a decent savings, but don’t just have 20k laying around on my own, it’ll be a mix of my savings and extra money from the home loan. I’m by no means rich or make a ton of money, I’ve just been very blessed so far in life to be able to get myself ahead of the curve a bit. This is also my first vehicle I’ve ever financed so I’m trying to learn as much as I can now. Also, my dad and I have a 76 Bronco that we plan to sell before the new ones arrive, my portion of that sale will also go towards the down payment, so I’m pulling from a lot of angles to build this down payment as high as possible.
 

guernsej

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Have you used a loan calculator to estimate monthly payments? Browse rates at local credit unions and estimate your payment based on that, borrowed principal, and term. That'll tell you what you can afford - make sure you factor in taxes/registration and expected dealer fees in your total cost.
 

dejones64

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Shop around, credit union, bank, find the best interest rate...
 

EvlNvrDys

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Yeah I just Google it Auto Loan Calculator

Ford Bronco Should I give up the dream or is there hope? 1599060770996


And I use my local credit union for rates, they are usually in the 3% range all the way up to 72 months. I highly doubt Ford will be offering 0% on the new Bronco at launch, and credit unions typically better than banks. And with a score in the 700 range, you should have no issues finding a loan in that 2.5% - 4% range.

And putting down 40%+, you certainly won't be under water in the loan which is good. Just don't over extend yourself and you should be ok.
 

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You can figure out your monthly payment easy enough.
Ford Bronco Should I give up the dream or is there hope? 1599060770996


PV = Financed Amount = Sales Price (Including fees) + Taxes - Down Payment
r = APR / 12
n = # of months

Edit - having this set up in Excel and bringing a laptop to a dealer, you can also quickly see the total amount you'd pay on a loan and how much interest. Very useful when comparing different incentives and interest rates which are sometimes mutually exclusive (3K off OR 1.9% financing).
What!?!?! Just bring your phone and do a google search for “car loan calculator”. It pops up on the search page and you don’t even have to go in to a website........

Ford Bronco Should I give up the dream or is there hope? 810332B0-4E9C-4150-B40B-0F12D0311FB7
 

Hkak45

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Nissan just probably charges ridiculous APR% because they are a sinking ship and it’s sinking fast. They need all the money they can get so maybe screwing the customer is how they do it. Either way look at local banks and credit unions to see what rate you can get.
 

iamchewby

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Not sure if this applies to your specific situation, but with Ford, they often have a $1000 rebate but it comes with an enormous interest rate. What we did with my wifes truck was we took the $1000 rebate, made a couple payments, collected our money and refinanced, getting the money, and a couple hundred off the monthly payment.
 

GotGOAT

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Don’t stress! I’m going to go opposite of everybody else, if you are that worried now, making the monthly payment is going to be huge source of anxiety.
if you can already put down approximately $20K, then I would recommend waiting out the first model year. Buy a 2022 (it’s realistically only going to be a few months behind the last of the reservations). This will allow either a larger down payment or paying off other bills to free up cash flow. A 2022 Bronco at $43K with a $25K down payment is not going to be a large monthly note with you 700+ credit score.
Breathe, relax, the Bronco is a great place to be AND will still be a great place to be at the end of 2022.
 

Firefly

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I want that 76 ?

As was said. Loan calculators and bank/CU rates are abundant online. I've already mapped out payments, interest costs per month and per life of loan for different rates and length of loan for 10K -25K down. It's kind of fun--and enlightening.
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