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No, I’m not actually asking you to post how much you can afford. This is not a competition. 
As someone who is involved in some other hobbies that can get pretty expensive if you’re not careful, and given the fact that this vehicle generally caters to a younger demographic, I just wanted to share some information and suggest that before you place your order...
Take a good, hard look at your financial situation before you over extend yourself on a vehicle with a ton of upgrades and features.
I’m only writing this because I want nothing more than a bunch of lifelong, happy bronco owners. So I figured I’d just lay out a few points to consider for those who may not have a lot of experience with car loans.
-you can see how much car you can afford using a calculator like this: https://www.moneyunder30.com/car-affordability-calculator
-you can estimate depreciation value here (I used Jeep as an example) https://www.themoneycalculator.com/...tors/car-depreciation-by-make-and-model/JEEP/
Now: please buy the bronco you want, that you can afford.
A bronco is a bronco.
You don’t have to validate your decision to me. I’m just sharing this info because I know there are a lot of people on this forum buying an expensive vehicle for the first time.
If it feels expensive NOW, it’s probably too expensive.
As someone who is involved in some other hobbies that can get pretty expensive if you’re not careful, and given the fact that this vehicle generally caters to a younger demographic, I just wanted to share some information and suggest that before you place your order...
Take a good, hard look at your financial situation before you over extend yourself on a vehicle with a ton of upgrades and features.
I’m only writing this because I want nothing more than a bunch of lifelong, happy bronco owners. So I figured I’d just lay out a few points to consider for those who may not have a lot of experience with car loans.
- The easiest way to reduce your risk is to increase your down payment or lower the total vehicle cost. Monthly payment numbers are not a measure of cost. Extending your monthly payment over time does not save you money, and it may actually hurt you if you need to sell (see “under water” section below.
- The bronco being new and exciting does not make it a good purchase decision. If you wouldn’t buy a brand new vehicle anyway, you should examine your expenses.
- Do not buy a higher trim with the intent of recouping increased resale value. The depreciation percentage is likely to be higher on more expensive models, and either way, this is a big gamble. Buy the features that make sense for YOU, not what you THINK the market wants.
- Lower trim levels with upgrades over time are a smarter financial decision for most people. Sure you might save a few bucks if you need everything in a certain package, but not being locked into those costs as part of a loan is a major advantage and far more important when it comes to selling early.
- Tax is NOT included in the purchase price of the builder. On a $40K car, this can add $3000 in certain states! Generally, you pay the tax of the state you live in, not the state you are buying from.
- Insurance premiums on a new vehicle can be significantly higher than an old vehicle. Run some quotes on your vehicle (or a similar one) before ordering.
- If you have a sizable cost of the bronco tied up in the loan and you need to sell in the first several years, you will be UNDER WATER. This is because of depreciation. The bronco may have an extra years worth of demand to cover it, but I don’t really expect it to cover the cost of depreciation at all as Ford ramps up production - especially of some of the more expensive models with accessories. If you don’t know what it means to be under water on a loan, you really should examine whether you need to increase your down payment or reduce the total vehicle price.
- if you don’t have at least 3-6 months of cash for your existing lifestyle + your new payment, you should lower your payment or increase your down payment until you do. People will lose their jobs over the next year, no question.
- you should start putting away the payment amount in a bank account now to practice having enough cash to afford your bronco, then use that money to increase your down payment
- there is a lot less shame in having a lower trim level and owning your own bronco than having to sell in a year because you couldn’t afford the payments or lost your job, or being beholden to your loan and being car-poor
- 72 month loans are LONG. Just because people do them doesn’t mean they are a good idea. It will likely take years for you to get above water on the loan. A lot can happen in your life in 5 years. Families, kids, houses, emergencies... being under wanted on a car SUCKS and you should calculate how long it will take you to be above water considering average vehicle depreciation.
-you can see how much car you can afford using a calculator like this: https://www.moneyunder30.com/car-affordability-calculator
-you can estimate depreciation value here (I used Jeep as an example) https://www.themoneycalculator.com/...tors/car-depreciation-by-make-and-model/JEEP/
Now: please buy the bronco you want, that you can afford.
A bronco is a bronco.
You don’t have to validate your decision to me. I’m just sharing this info because I know there are a lot of people on this forum buying an expensive vehicle for the first time.
If it feels expensive NOW, it’s probably too expensive.
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