Cash Vs Bank

Spooled

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Some cash down and finance the rest. Unless you're rich, complete cash payment is bad investment in my opinion. Your money can make better returns in the stock market vs. Investment in a vehicle.
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Fireman Dave

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Sold my Jeep in anticipation of Bronco release and before the market gets flooded with used Jeeps. That money is sitting in the bank earmarked for the Bronco. Will put at least 50% down, maybe more depending on how long it takes to acquire. Already started a $500 per month "car payment" adding to that balance until such time I need to get a loan for whatever the remainder might be.
 

Mke_80

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To each their own. Everybody is in different circumstance and different stage of life.

The way I look at it, with a loan, you won't have the full $50K in the bank as you would have to subtract whatever the car payment is from that total. After 12 months and the car is only worth $35K, it's water under the bridge for those that pay cash. For those with loans, they are still making car payments just like it was brand new and still worth $50k when it now is only worth $35K.

True, the fun part about this post especially is that there is no true or false answer
 

Nova

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Did I miss something? Knowone has mentioned leasing? Advantages smaller montlhy payments, new Bronco vehicle in 3 to 4 years, no worries of an accident and depreciation! IMO leasing all the way!
 

Haulin455

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In my opinion, as long as the interest rate is low, and your down payment is large enough to never make you upside down on the vehicle over the course of the loan, then I don’t see financing as a bad option. I’ve always been a proponent of putting down at least 50% in trade-in/cash and then taking short loans (lower interest rate) to keep the amount you pay the banks in interest minimal.

Long story short; cash is king but as long as you live within your means then financing is fine too.
 

Dmk08

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Did I miss something? Knowone has mentioned leasing? Advantages smaller montlhy payments, new Bronco vehicle in 3 to 4 years, no worries of an accident and depreciation! IMO leasing all the way!
Disadvantages-
Throwing away money
Never own it
Throwing away money
Cant really modify without breaking the lease agreement
Did I mention you're throwing away money?

:)

I see leases as good when you get insane discounts as you only pay the difference between sales price and cap cost. Probably wont be the case with a Bronco for years.
 

Dick_Castlesmurff

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I'll put my current car on the market about a couple weeks out from picking up the Bronco. If I still have it at trade in time I'll see what the dealer offers me for trade. My current car is a $12,000 something they could flip in a week so I don't expect them to be too far away.
 

SAcobra427

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MCG Dawg, Dmk08, and Spooled, Could'nt agree with you guys more. Almost always better to use somebody else's money (the banks) in this situation, especially now with these current rates. At 0..1... or 2% you are paying almost all principal to your loan balance while keeping the money you would have spent on a big down payment and investing it in something thats making you money.
 
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nomnom

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da_jokker

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When it comes to actual numbers, there is only 1 answer... if the interest rate to borrow money is lower that the interest (or return) of your Savings... then go with the Loan.

Example: Car loan 4% < Buying Amazon Stock 28% you keep your cash and get the car loan.

Now with that said.. I really like not having a car payment because 1 time monies beats out ongoing liabilities every time for me. However for the Bronco, chances are I'm going to take on a Loan but less than half of the bronco so I'll see how that goes.
 

da_jokker

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I heard somewhere that Ford is doing 48 months 0% APR for the baby bronco, will this deal be available for the full bronco?

"To start, all 2021 Bronco Sports offer 0% APR for 48 months through Ford Credit. Alternatively, 60-month and 72-month options are available at 1.9% and 3.9%"

https://www.carsdirect.com/deals-ar...ll-new vehicle still months away from arrival.
Man I hope that is true... Money is cheap to borrow right now with the Feds keeping the rate next to none. Yet Bankrate claims the typical car loan is like 5%... wtf?

I thought Ford would try to under price Jeep just to stick it to them, but accept for the loss leader of the base, I don't think that is going to be the case... especially with the demand they have on the Bronco (I can't blame them)... so if they can at least provide some lube in the way of a lower interest loan, they are still making out more than most and getting MSRP in many cases for their car.

Come on Ford... you aren't giving us the Transmission, the Paint Colors, the Intererior Colors... at least give us the Financing!!!
 

Dmk08

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I heard somewhere that Ford is doing 48 months 0% APR for the baby bronco, will this deal be available for the full bronco?

"To start, all 2021 Bronco Sports offer 0% APR for 48 months through Ford Credit. Alternatively, 60-month and 72-month options are available at 1.9% and 3.9%"

https://www.carsdirect.com/deals-articles/ford-bronco-sport-already-has-a-0-apr-deal#:~:text=Ford is already offering 0% APR on the,an all-new vehicle still months away from arrival.
If they offer 0% on the Bronco Ill be financing 100% when I could easily cut a check. Just sayin...
 

bobbleheadguru

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Cash in full. If I can't pay cash for something that depreciates, then I can't afford it.

This is really excellent advice. That is why is is better to put money in appreciating real estate than in depreciating cars... and worth it to take a home loan, when it is not worth it to take a car loan. Also, I will say that there may be a tax benefit of putting the money in your house as well.
 

IPCRESS

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Trading in 2014 Rubicon as down payment + TTL on Wildtrak
I believe dealer will give me a lower delivery price if financing through Ford Motor Credit. If so, payoff loan with either cash or refinance with my bank where I can get a lower rate. It comes down to how the dealer deals.
 
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