Feds to up Interest Rates

[vzqhsg]

So how many will not purchase a truck now?

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[Silver-Bolt]

If they build mine I will still buy it.

 

[Mikey1287]

Pay cash.

 

[Lowcountry Bronco]

I wish my pay went up as easily as they raise rates!

 

[Southside_Ray]

I will just refinance when things change. I want my Bronco when it arrives!

 

[BlarneyStoned]

Pay cash.

Looking more and more attractive for sure

 

[RagnarKon]

Many have been waiting 2-3 years... I would assume the average auto loan term is around 4 to 4.25 years these days. I'm sure most people that are still waiting can put more than 50% as a down payment if they were smart about putting money aside during the wait.

BUT I'm sure for a lot of people—whether they are willing to admit it or not—the Bronco was always a stretch purchase and they may not have been squirreling money aside while they waited. Or perhaps they suffered a financial setback during the wait and are still recovering. And for those people, interest rates have pushed them out of the market unfortunately.

 

[YULQQKN4]

I don't buy cars based on interest rates...I'm buying a vehicle not a rate. The rate only determines how much money I will come out of pocket with. When vehicle rates are low I put my money towards either higher interest debt or investments. With these high rates...I would just put more money down to counteract the interest. And always remember...you can always refinance when rates come down.

 

[DryYourTears]

If a 1/2 point change is leading to someone cancelling, they probably were already over-stretched on being able to afford it.

 

[thenewjs]

Put half down on my Raptor, payment is about $500, but I pay $1000 a month.

 

[broncoj11]

Many have been waiting 2-3 years... I would assume the average auto loan term is around 4 to 4.25 years these days. I'm sure most people that are still waiting can put more than 50% as a down payment if they were smart about putting money aside during the wait.

BUT I'm sure for a lot of people—whether they are willing to admit it or not—the Bronco was always a stretch purchase and they may not have been squirreling money aside while they waited. Or perhaps they suffered a financial setback during the wait and are still recovering. And for those people, interest rates have pushed them out of the market unfortunately.

Unfortunately, the average auto loan is 72 months now. Which also brings a higher interest rate.

 

[YULQQKN4]

Unfortunately, the average auto loan is 72 months now. Which also brings a higher interest rate.

Personally, If I have to go longer than 60 months to afford the payment, then I can't afford the vehicle. a 72 month loan at todays interest rates its crazy. I try to stick to 48 months whenever possible, or take the 60 month contract and pay the 48 month payment as often as possible. If you look at an amortization chart of a 72 month loan with a 7-8% rate, it will make you sick!

 

[Krimzun]

Article I read says they are considering it when they meet late March nothing is in stone yet. Not sure why a .5% increase would keep anyone from yah it sucks but we are talking about a mcdonalds meal here not a house payment!

 

[RagnarKon]

Unfortunately, the average auto loan is 72 months now. Which also brings a higher interest rate.

Oooffppphh. I looked it up after I made the post and you're right.

That's gross. In my opinion, if you can't afford a 3 year loan, you can't afford the vehicle. I could see someone considering a 5 year loan if it's an unexpected purchase and they absolutely need it for their family.

But for the Bronco, which is more of a "weekend" vehicle... eh... going to have to agree with @YULQQKN4 if you are going longer than 60 months you probably shouldn't be buying the vehicle.

 

[YULQQKN4]

btw... .5% on a 72 month loan financing $40000 changes your monthly payment $9.40.....

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