Bronco Budget Poll & Financial Talk

[Zero_chance]

Every time I see a $99/mo KIA ad on TV I think to myself....Man...I could have 10 of those.

Some personal life experience car buying thoughts:
If you think you can't afford something....you can't
If you think you don't want something....you don't.
Your first decision is always your best decision.
Never second guess yourself.

...and something we all know but choose to disregard:

New cars are the worst personal financial investment you can make.

Yet, here we are. Welcome to the club.

My wife and I said we’d never buy new again after the Mustang in 2017. We even thought we’d wait and buy a low mile used Bronco after launch. Not happening. If Bronco holds its value similar to Wranglers, it won’t be nearly as bad an investment as some vehicles.

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[Mustard]

The best financial advise my dad gave me was: do not buy anything that you cannot pay for with cash that day. Exceptions to this rule are big purchases like homes and cars (and hopefully cars come off the list as you get older). Simple rule, but effective.

Extra tidbit of knowledge a lot of people do not know or realize. If you have a 30-yr mortgage and you make an extra payment a year (so 13 instead of 12), then you'll pay off your mortgage in 21 years (if I remember correctly). Take advantage of anyway you can save money.

 

[Beef78]

That percentage will depend on where you buy the car. Do your research. I will end up paying around 7 percent for taxes in my state along with associated DMV feed and such that will put me somewhere around 8.5-9 percent. The dealer themselves shouldn’t charge a Percentage fee unless they’re just taking advantage of you. They may have fixed “document” fees and such, but look into which of those are legitimate.

I'm definitely going to ask again about that 12% because that dealership has amazing reviews and the guy I talked to seemed really open and not salesmany

 

[Garbone]

If I was in a tighter financial fix I would wait 2 or 3 years and buy used. Heck, the wife wants me to do that now. Cars a luxury and have very little real value behind the emotional, but you can't take your dollars with you in the end so enjoy.

My daily is 14 years old, I am not even going to sell it but store it away in the garage. Honestly, If Bronco had not come along I would probably just put new leather seats in the Mustang and be happy for another 10 years.

Base-2.7 squatch for about $41 and in 10 years no one will know any difference between it and a First Edition besides the fact one has ugly seats.

 

[Chrism81]

We already have one $700 per month car payment, my Mustang, which is why we are waiting until the wife graduates and starts bringing in the registered nurse income before committing to another similar payment. We’re not planning on ordering any sooner than March of 2022. We already have a ten year old and our dream home however, so we don’t have to worry about either of those items coming up again, which gives us more flexibility. If you want to buy a house in the next 5-7 years (i.e. the term of your prospective Bronco loan), I would make sure your debt to income ratio won’t be maxed out with the Bronco payment plus any other debt still on the books. Otherwise you’ll likely have to wait until the car note is up. Above all else, don’t go crazy and get a trimmed up version you won’t actually use to its potential if it’s going to make finances tight. We set a budget of around $50k for the Bronco, which based on the preliminary numbers we’ll be able to get exactly what we want, and will be putting $10k down on it. I think the build and price / order time will separate the men from the boys and you’ll see a lot of the Badlands reservations being shelved entirely or trimmed down to a more realistically priced version for some people.

A new nurse doesn't make a ton of money. More than the average starting salary I am guessing for many jobs, but it took me a good year till I was making around $10/hr more than what I started at and that's working nights and leaving the first hospital I worked at.

 

[Straight 6]

Also to those who are fixated on retirement. Live your life and have fun you don’t even know if you’ll make it to retirement. Just be smart, pay your bills and be debt free by the time you’re 65 while saving for retirement.

If you fixate enough on retirement you won't have to work till 65

Very valid point though, don't focus on the future so much that you don't enjoy the present

 

[aplm7]

I think lots of it is people think they will always have a steady income coming in, so the thought of a loan doesn't bother them much. If you don't have that confidence, maybe it's not time yet to buy yourself a toy like this, save up more and/or look for ways to grow your career first.

 

[BroncoJay]

I’ve learned over the years ...the new car smell wears off well before that nice car payment...
Meaning the joys of the Bronco most likely will wear out before that 5-6 year bank note...
Life is short be happy but be smart..

 

[elmystico]

A new nurse doesn't make a ton of money. More than the average starting salary I am guessing for many jobs, but it took me a good year till I was making around $10/hr more than what I started at and that's working nights and leaving the first hospital I worked at.

Does that depend on the type of nursing you go into and/or area of the country?

 

[Beef78]

Some fatherly advice from someone who is a father:
First off, know what you can/want to afford and don’t go beyond that. This includes input from your significant other and taking other goals into account.
Second, don’t buy the bronco to be your future “dad” car. Buy it because you like it. Unless the bronco is super crazy reliable or you keep it locked in your garage, there is a good chance you will have a different vehicle when your kids are old enough to be aware of stuff. (Note: I am buying a bronco to be my dad car my kids are 5-11 and they are more excited about it than I am.)
Lastly, when you buy your bronco, it is not an investment. You are purchasing a lifestyle. Moreover, a tool that will hopefully be an avenue to a lifestyle you desire. It is like purchasing a timeshare, going on a vacation or maybe upgrading your kitchen to nicer appliances. All this should be acknowledged and taken into account when budgeting. My wife and I know we will have to make some sacrifices to be able to meet savings goals if we are going to buy a new toy.

 

[Bronco4lyfe85]

Every time I see a $99/mo KIA ad on TV I think to myself....Man...I could have 10 of those.

Some personal life experience car buying thoughts:
If you think you can't afford something....you can't
If you think you don't want something....you don't.
Your first decision is always your best decision.
Never second guess yourself.

...and something we all know but choose to disregard:

New cars are the worst personal financial investment you can make.

Yet, here we are. Welcome to the club.

Smiles per miles. I bought a 2019 Scat Pack Challenger and I can afford it but that 48K was worth every penny. When I push that start button and hear that symphony of sound my heart melts. When I get in and can turn on my AC seats and flip into track mode and hit the gas and hear the tires squeal while the car just unleashes the most beautiful noises a mans ears have ever heard it’s worth it. So worth it. I took it to the track and I did a burnout and then lit em’ up with launch control and I squealed like a moronic 6 year old as I got 100+ mph while passing that finish line.

 

[Bronco4lyfe85]

A new nurse doesn't make a ton of money. More than the average starting salary I am guessing for many jobs, but it took me a good year till I was making around $10/hr more than what I started at and that's working nights and leaving the first hospital I worked at.

Doesn’t make a ton of money? My brothers wife came out of school and was making like $38-40 an hour right off the bat, 80K a year is damn good money for a new job. She makes almost double that now.

 

[Chrism81]

Doesn’t make a ton of money? My brothers wife came out of school and was making like $38-40 an hour right off the bat, 80K a year is damn good money for a new job. She makes almost double that now.

Also depends on where you live. I started off at $37. Guess I don't consider that salary that much considering what we are responsible for and do on a daily basis.

 

[Bronco4lyfe85]

If you fixate enough on retirement you won't have to work till 65

Very valid point though, don't focus on the future so much that you don't enjoy the present

Anyone retiring before 65 is far more wealthy than I. I do just fine for myself but I can’t envision retiring before 65!

Hypothetical:

You work from 25-55 and live to 85 so you have to cover 30 years.

At 3K month for 30 years you would need $1,080,000 saved up. I know stocks change things but I can’t calculate rate of return.

So you would have to save 3K a month in a 401K. 10% would be 360K a year. If you made 180K that’s 20% a year in a 401K.

10% on a 401K is a fairly significant amount of money for most people. Not to mention the 19.5K contribution limit. Obviously savings accounts exist though lol. I’m only saving like 1200-1500 a month currently.

 

[Bronco4lyfe85]

Also depends on where you live. I started off at $37. Guess I don't consider that salary that much considering what we are responsible for and do on a daily basis.

Oh I can agree with that! But $37 an hour is a damn good job. A lot of people are ecstatic to hit $20

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