Bronco Budget Poll & Financial Talk

[MannyFrescoSC]

This is the exact reason I’m willing to splurge a little bit. It’ll be able to get me to places my Sedan just can’t get me to.

Still waiting to see B&P before I make any decision. Looking to stay under 40k financed.

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[elmystico]

I always laugh at the home makeover shows that my wife watches when they aren't in California, New York, Florida, or Colorodo. The prices of houses blows my mind......SO CHEAP. I live in probably one of the cheapest areas of California and a 2000 sq ft house with an acre is around $500,000 for something built in the 60's or 70's. If I head south to Sacramento or San Francisco......oh jeez.

Be sure to include Seattle area in that lump of gawdawful expensive

 

[Bronco4lyfe85]

Be sure to include Seattle area in that lump of gawdawful expensive

Denver too. It’s the Californians fault.

 

[kodiakisland]

I don't have a budget and can pay for whatever I decide to get. That doesn't mean I don't care about price though. I only want to pay for what I will actually use and feel I need. The less money I spend on the Bronco, the more I spend on my other hobbies. I also plan to keep this long term. There will be no resale value when I am done with it.

My retirement is fully funded. My wife and I both have good income with great job security. Our kids are grown and gone. I average a new vehicle every 10 years. I probably spend more than I should on the things I like, but I've also taken care of the future at the same time. We put in our dues when we were younger but made smart decisions and are able to reap the rewards.

I will buy the lowest trim with the least options that fit my needs. The price will take care of itself.

 

[DarthTod]

That’s why it’s important to start saving as early as possible. I would say at least by 25. Compounding interest is one of the keys to building wealth. Save early and don’t touch it.

That’s the big one right there. Sock away as much as possible when you’re young and the savings will be on cruise control by the time you hit your fifties. My wife and I still pack plenty into our retirement funds, but most of the time the return on the investments are far outstripping our contributions. If you can’t afford a new car while also stocking the 401k, then you need to think about your priorities.

But the beauty of the Bronco, as opposed to almost any other vehicle is that the styling should remain fresh for much longer, which makes it a longer term investment than a sedan that will feel old in five or six years. (As long as you maintain it, of course. Don’t ever skimp on maintenance.) For us, this will likely be the last big vehicle purchase outside of the final truck and trailer for traveling in our retirement.

 

[ThePayola]

My wife and I reserved a 4-door Outer Banks, which will be her primary vehicle. Based on what I’ve seen of the pricing, I’m expecting It to cost somewhere in the low-to-mid $50K range with the options we like. We should be able to sell her current car for ~$20K (or maybe trade it in if we get a good offer) and since we own it outright, all of the equity will go towards the Bronco. I can afford to pay the balance, but we’ll decide how much additional cash to throw at it depending on what the financing looks like. If the rate is low enough, then I wouldn’t mind making a modest payment and keeping that money invested elsewhere. Even though I can afford a $50K+ car, it might be a different story if I wasn’t bringing ~$20K in equity to the table. I‘ve never been a big fan of dropping that kind of money on a depreciating asset, but we both fell in love with the Bronco and I suspect it will hold its value better than the average car - probably more in line with the Jeep Wrangler.

We both preferred the look of the Badlands among all the packages, but thought the Outer Banks was a better fit for our needs. The Mid Package creature comforts that are standard on the Outer Banks are optional on the Badlands, and we didn’t think we would use the Badlands off-road capabilities to their full potential (we’ll take it on some camping/light trail trips, but nothing too extreme). It just didn’t make sense to pay a ~$4K premium for the Badlands to get off-road goodies we won’t use, then having to pay to add the Mid Package and other options for the Badlands that come standard on the Outer Banks. Plus, I’m sure we can find lots of aftermarket parts to get the Outer Banks looking exactly how we want once these things things start hitting the streets. That’ll be part of the fun of owning a vehicle like this.

 

[BroncoChicken]

I’m of the thought that I can afford whatever I can pay cash for. My only exception is a mortgage.
I made the mistake of calculating the opportunity cost of the Bronco. The price invested at 8% annual return would turn into almost $250,000 when I plan to retire. That’s an expensive Bronco!

 

[Scohin]

I'll have 5k for a down and I've my trade in, BD is what I'm prob getting. Unless it's too much then I'll go for the Big Bend :/

 

[kodiakisland]

I’m of the thought that you can afford whatever you can pay cash for. My only exception is a mortgage.
I made the mistake of calculating the opportunity cost of the Bronco. The price invested at 8% annual return would turn into almost $250,000 when I plan to retire. That’s an expensive Bronco!

I'm not working just so I can retire. I'm fully enjoying life now. Many people won't live to see retirement and many that do will be in too bad of health to enjoy it. Lots of money in the bank won't mean much.

I'd rather have 40 years of great living while I can enjoy it and a modest retirement than 40 years of miserly living to have lots of money when I'm old.

 

[wolfpackinva]

I'm paying off four debts within the next year. I have one kid off the payroll. I've never bought something just for me/fun. I've gotten permission from the wife to buy and have been told not to cheap myself out of it. I will drive this thing for at least 10 years, so it's around for a while.

So if you can, go for it. It's only money and life should be enjoyed.

 

[BroncoChicken]

I'm not working just so I can retire. I'm fully enjoying life now. Many people won't live to see retirement and many that do will be in too bad of health to enjoy it. Lots of money in the bank won't mean much.

I'd rather have 40 years of great living while I can enjoy it and a modest retirement than 40 years of miserly living to have lots of money when I'm old.

Oh I’m not working just for retirement either. I know that my view on it is very different from most people’s view. I’m not judging or trying to change someone’s mind. The OP just asked what everyone thought, so I chimed in with how I view it. *changed the original post to I instead of you so it reads differently
I’m getting a Bronco and what I end up spending will just depend on the value I place on specific features and options. It was just pretty eye opening to calculate the opportunity cost of the purchase for me.

 

[cybersal]

I had a good paying job (which I hate) that collapsed due to covid. Thankfully, I have a part time job that I love, but am running a small monthly deficit. I had been saving money for the last three years to write a check for the Bronco. 90% of that is still in the bank. Am not looking forward to car payments and higher insurance, and may have to find a different or another job in order to make ends meet. It's a sacrifice I'm willing to make.

I don't plan on retiring. My retirement plan is death, whether that happens next week or in 20 years. I'm a workaholic. I get stir crazy on two day weekends. I'm late 50s, single, never married, no kids. My parents left me a little IRA which I have contributed to and has grown over the years. If I have to tap into it, oh well. Will have to at age 59 1/2 anyway. I want a damn Bronco, but am happy with a Base.

We're all on our own journeys. Do what's right for you and financially prudent.

 

[Cheshire]

Sorry there's a lot of words here and if this info exists elsewhere let me know and I'll delete this post

Bored waiting for B&P so...

Reading through a lot of the threads on here and have come across a lot of people's comments that make it seem like money isn't much of a factor in buying their new Bronco. People with multiple nice cars already or people with BMWs, Corvettes or nice new trucks talking about getting a fully optioned out Badlands. If you look at the 'which trim are you getting poll' the majority of votes is for the Badlands (the 2nd most expensive option without counting FE).

I'm just wondering if it's that a lot of people on here make a lot of money OR are at an age where they are settled and can make this kind of purchase easily/intelligently OR have people taken the time to research their budget in depth and can, again, make an intelligent buy OR if people have just never made big purchases like this and don't really understand the financial affect and are just running off of hype and hopes OR are people okay with debt in general and they just want that fully optioned Bronco that bad?

I feel like I have a decent income, I don't have kids, don't have a huge amount of debt, split rent so it's not that bad and yet with the budget I'm giving myself, I'm maxed out at a Big Bend with MAYBE the mid package and even then I look at that monthly payment and it hurts a little to think about.

Are some of us getting false confidence by reading all these rich/older/whatever it is people's comments? haha I understand that everyone should do the research and understand their realistic budget. Just curious if this forum is full of older guys that are settled with money going "I don't understand why people don't just get the WildTrak with the Lux package and a 9.8 triple turbo diesel with the spoiler." Nothing against those guys (I'm jealous). As someone who's never made a big purchase like this, though I can technically afford it, I'm always looking for confidence boosts lol.

To go along with this, maybe the more experienced buyers could throw out some fatherly tips and things that new buyers should expect or understand in terms of APR %, monthly payments, buying a new car VS buying a house first, if you make less than x then you probably shouldn't consider buying the Bronco right now, you only live once so if you can afford it you should definitely do it, it's only worth it if you are settled down, etc.

Debt is a curse to be avoided at all costs. I stopped borrowing money 20+ years ago and don't have that added stress. Working your butt off to pay for stuff you bought in the past, is a form of insanity. Okay, enough of that.

Sounds like a new Bronco is a bit of a stretch for you. If I was talking to my young self, I'd say buy a cheap car to get from A to B and save as much of your paycheck as possible until you've got a fair amount of savings. Invest that savings. First, save in tax-free retirement accounts. Can't beat tax-free investment growth. Save after-tax money also and invest in stock, cash flowing real estate or other. Long term, this will allow you much greater satisfaction, happiness and freedom. And freedom is what we all really want. Buy the new vehicle for cash that comes out 15 years from now. You'll want that as much as the Bronco you cannot afford. Right about now, my young self would tell me, makes sense, but I am buying the Bronco.

Go to credit unions and local banks and scout out the lowest rate possible. NEVER get a loan longer than 60 months! Best to do a 36 or 48 month loan. It'll get you a lower rate, save lots of interest and get you owning the vehicle faster. Once you own the vehicle - KEEP IT! Nothing better than driving around for years WITHOUT a payment! If you think you'll want a new car in 3-4 years, then you don't really love the vehicle you're considering as much as you think you do.

Buying a home is more like slavery than an American Dream. That's a joke created by the banks. Having to work 30 years to pay bank interest on a home is a bad deal. Much better to rent and invest the money you would put in a home and put it in stocks, commercial real estate or something else with a good return. Long term returns on homes are not that good, the asset is highly illiquid, has large transactions costs and keeps you stuck in place like a ball $ chain. When my water heater blows up, I call the owner and let them fix the problem.

If you think you will drive the Bronco for 10 years, then seriously consider it, if not then don't. Put down as much as possible. If you can't come up with 20-25%, it's too expensive. The extra $3500 for the big engine is a good investment imo for longevity and resale value. Skip the mid package and get the 2.7L.

Good luck!

 

[RLW]

I'm going to go with what many have said and say avoid debt at all cost. Specifically with automobiles.
The only "good debt" or tolerable debt in my opinion is a home, with limits obviously.

I feel there may be an automotive bubble that "pops" much like the housing bubble did years back.

Way too many people driving around in $70-80k trucks that I know don't make that much on an annual basis. The loan/financing that people are doing for new vehicles is just insane.
Setting people up for debt that they will have a hard time climbing out of. All for a "cool ride".

 

[BadlandsJP]

Debt is a curse to be avoided at all costs. I stopped borrowing money 20+ years ago and don't have that added stress. Working your butt off to pay for stuff you bought in the past, is a form of insanity. Okay, enough of that.

Sounds like a new Bronco is a bit of a stretch for you. If I was talking to my young self, I'd say buy a cheap car to get from A to B and save as much of your paycheck as possible until you've got a fair amount of savings. Invest that savings. First, save in tax-free retirement accounts. Can't beat tax-free investment growth. Save after-tax money also and invest in stock, cash flowing real estate or other. Long term, this will allow you much greater satisfaction, happiness and freedom. And freedom is what we all really want. Buy the new vehicle for cash that comes out 15 years from now. You'll want that as much as the Bronco you cannot afford. Right about now, my young self would tell me, makes sense, but I am buying the Bronco.

Go to credit unions and local banks and scout out the lowest rate possible. NEVER get a loan longer than 60 months! Best to do a 36 or 48 month loan. It'll get you a lower rate, save lots of interest and get you owning the vehicle faster. Once you own the vehicle - KEEP IT! Nothing better than driving around for years WITHOUT a payment! If you think you'll want a new car in 3-4 years, then you don't really love the vehicle you're considering as much as you think you do.

Buying a home is more like slavery than an American Dream. That's a joke created by the banks. Having to work 30 years to pay bank interest on a home is a bad deal. Much better to rent and invest the money you would put in a home and put it in stocks, commercial real estate or something else with a good return. Long term returns on homes are not that good, the asset is highly illiquid, has large transactions costs and keeps you stuck in place like a ball $ chain. When my water heater blows up, I call the owner and let them fix the problem.

If you think you will drive the Bronco for 10 years, then seriously consider it, if not then don't. Put down as much as possible. If you can't come up with 20-25%, it's too expensive. The extra $3500 for the big engine is a good investment imo for longevity and resale value. Skip the mid package and get the 2.7L.

Good luck!

Rent in LA is high and bought a home with more room with a mortgage that is less than renting. So it all depends on someones financial situation.

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