Just as a bit of advice to everyone on here, don't bankrupt yourself trying to get a Bronco

[Garbone]

I myself am fretting over BB locker vs BaseSquatch value

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[Cooknn]

Trading in my ‘16 Titanium Focus and putting down maybe $10K on top of that. Then I’ll finance the rest for 60 months. It will be paid off just before I retire and I’ll drive this Bronco for the rest of my days with no car payment. That’s the plan.

 

[irv0735]

For me it’s not so much being able to consistently make the high payment on this vehicle, but rather just knowing all the other things I could be investing it in. I mean hell, you could buy a nice piece of land in Elk Mountain, Wyoming with 40k (random as hell, I know).

But back to the specific subject, yea OP is definitely right. As a guy with no kids, I try to keep my monthly car payment well under 10% of my monthly income. I imagine that number greatly decreases with children, which is why I’m doing it now during my quarter life crisis ?

Bronco here I come

That land is cheap because you can't access it for a chunk of the year! Haha
And don't draw more attention to it, I'm currently looking in the area and want a good deal!

 

[Daytona_Bronco]

I did see that, and if I was financing that would be the way to go for sure, and if anyone who is financing and can qualify this is a no brainer. I would suggest to go 36 months no interest if you can put down enough to get your payments within reach. Did I mention I hate paying interest?

Think 0% for 36 will still be available by delivery? I hope so !

 

[MrOzMan]

I have a different perspective....Finance as long as you want and put as little down as possible ....if the finance rate is low, like sub 3%. The price of the actual vehicle and the APR is what’s important. The payments will just reflect that. As a guideline, if financing , like the monthly payment to be about 10% of total net take home. I agree the Bronco is a toy and totally unnecessary though. But who wants to drive a base Corolla? Lol

I wouldn’t call that “perspective” financially smart. I know the counterargument is always “but I can invest my capital in other things,” but we know 99% of people don’t make financially smart decisions to offset their emotional ones.

 

[jayhawkco]

I did see that, and if I was financing that would be the way to go for sure, and if anyone who is financing and can qualify this is a no brainer. I would suggest to go 36 months no interest if you can put down enough to get your payments within reach. Did I mention I hate paying interest?

I don't love paying interest either, but if I did the 48 month 0.9% vs. the 36 month 0.0%, I'd pay $381 less a month but only pay a total of $1,072 in interest over 4 years. Spread out, only $22.33 a month. That to me is an amount worth paying to have a little more liquidity each month. I'll buy a few less whiskeys and come out even.

Chris

 

[ausherpharmd]

75% of Americans are living paycheck to paycheck.

I'm not expecting everyone on here to buy a 40k rig with cash but you should make sure that:

-You don't finance over 6 years
-You but at least SOME money down
-The vehicle's payment doesn't take up too much of your monthly income

If you have to seriously hurt your finances in order to basically buy a toy then you're not adulting right.

Not sure some won't be able to resist. I saw someone trade in an upside down car (3rd upside down trade in a row) for a truck that was $50k, and so the financed amount was $88k over 8 years. ?

 

[jayhawkco]

Not sure some won't be able to resist. I saw someone trade in an upside down car (3rd upside down trade in a row) for a truck that was $50k, and so the financed amount was $88k over 8 years. ?

Gross. I remember when I traded in the last (and only car I've ever bought new), the dealership was surprised I wasn't upside down. Also part of my great motivation to buy a vehicle with higher resale value.

Chris

 

[irv0735]

I wouldn’t call that “perspective” financially smart. I know the counterargument is always “but I can invest my capital in other things,” but we know 99% of people don’t make financially smart decisions to offset their emotional ones.

Removing the emotional aspect, it is financially smart... If you look strictly at return on capital, it's smart. It is when you add the emotions and inability to properly assess risk that you jeopardize the financial benefits.

Edit. Had to correct the way I started the first sentence. It was in error.

 

[Bradley Thornton]

I have a different perspective....Finance as long as you want and put as little down as possible ....if the finance rate is low, like sub 3%. The price of the actual vehicle and the APR is what’s important. The payments will just reflect that. As a guideline, if financing , like the monthly payment to be about 10% of total net take home. I agree the Bronco is a toy and totally unnecessary though. But who wants to drive a base Corolla? Lol

So is 10% for all toys added together?

Just wondering whats the full guideline to 100%

Back in the day I was told you needed 50% free money after you buy a house.

So how does the math work?

10% toys
10% Daily cars
30% house
20% savings
30% free money for normal bills and daily expenses.

Does income matter I would think all this would be different if a person make $50k vs 100k vs 200k vs 500k

 

[MrOzMan]

Regardless of the emotional aspect, it is financially smart... If you look strictly at return on capital, it's smart. It is when you add the emotions and inability to properly assess risk that you jeopardize the financial benefits.

There’s nothing financially smart about buying a brand new $40k-60k car, no matter how you justify it to yourself lol.
I’ve heard them all. “I’m leveraging other people’s money...”, “It’s a tax write-off...I’m going to pay it to the tax man anyway...” etc etc. That’s not to say I wouldn’t get one, but I’m not going to kid myself. I’m prioritizing real investments first.

 

[irv0735]

There’s nothing financially smart about buying a brand new $40k-60k car, no matter how you justify it to yourself lol.
I’ve heard them all. “I’m leveraging other people’s money...”, “It’s a tax write-off...I’m going to pay it to the tax man anyway...” etc etc. That’s not to say I wouldn’t get one, but I’m not going to kid myself. I’m prioritizing real investments first.

Well I can get behind that statement. I thought it was just how to pay for it once the decision to buy was made. Haha
There are scenarios where a new vehicle is used to generate content that equates to a return on the investment, but that's a very rare example, so we won't count it.

 

[Bradley Thornton]

I have a different perspective....Finance as long as you want and put as little down as possible ....if the finance rate is low, like sub 3%. The price of the actual vehicle and the APR is what’s important. The payments will just reflect that. As a guideline, if financing , like the monthly payment to be about 10% of total net take home. I agree the Bronco is a toy and totally unnecessary though. But who wants to drive a base Corolla? Lol

If you are getting X% and its lower than anther loan you have you should take all your down payment and put on your highest interest loan. I think thats how Dave Ramsey even says to do it (Never read up on him just heard people talk. I'm just a math guy common sense. If you have a loan for 7% and one for 3% and have a free $7000 you will save 4% on the $7k by paying it on the 7% loan.

Not hating just talking I actually think we are on the same page on this one I just explained why the low rate was so important.

 

[MrOzMan]

Well I can get behind that statement. I thought it was just how to pay for it once the decision to buy was made. Haha
There are scenarios where a new vehicle is used to generate content that equates to a return on the investment, but that's a very rare example, so we won't count it.

Having been down that path before, that feeling of contentment disappears as financial anxiety and stress kick in, so unless finances are in order first, the emotional ROI will be a negative (along with the financial ROI). That was with plenty of cashflow to cover the debt service and depreciation too.

 

[jayhawkco]

If you are getting X% and its lower than anther loan you have you should take all your down payment and put on your highest interest loan. I think thats how Dave Ramsey even says to do it (Never read up on him just heard people talk. I'm just a math guy common sense. If you have a loan for 7% and one for 3% and have a free $7000 you will save 4% on the $7k by paying it on the 7% loan.

Not hating just talking I actually think we are on the same page on this one I just explained why the low rate was so important.

100% agreed. Throw every extra dollar you can at the highest interest rate loan/card that you have. Most people (myself included in the past) don't realize how much money they're paying a month in interest. At my worst, I was paying something gross like $600 a month in credit card interest alone. When I finally buckled down about a year ago (and with the help of a strong real estate market in CO), I attacked it that way and now have no CC debt and my credit score went from something like 690 to 825. It sucks when you're in debt, but if you really put your mind to it, it is possible to get out. You just have to attack it strategically.

Granted, buying a $50K new car isn't the wisest financial decision overall, but if you apply the same mentality of putting your cash on higher APRs, you'd want to put as little down as possible, get as low of a rate as possible, and throw all the cash you have on an 18% credit card if it has a balance. You'll pay less in the long term.

Chris

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