Finance question -- what length of loans are you getting through dealership?

[5PC24]

Couldn't stomach the 7+% rate even with mid 800's credit score - sold off some stock and glad I did as it cratered 18% a week later...so the way I figure it I'm up 25% on this endeavour

Went the other way for me. I was considering selling stock but decided that my 5.75% rate in mid-March was good enough. The stock increased over 25% since mid-march (yes, really, in just 4 months). Could easily have gone the other way, but this one worked out well.

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[Woivod]

It's a great question you've brought up about financing through dealerships. The length of loans can vary depending on individual preferences and financial situations. Some opt for shorter-term loans to pay off their vehicles quickly, while others prefer longer-term loans for lower monthly payments.

When it comes to financing decisions, it's always a good idea to explore your options and consult with experts. If you're ever in a situation where you need advice on mortgages or financing, a Mortgage Broker in Bridgend can provide valuable insights and guidance tailored to your unique circumstances.

 

[Coralhead]

Just write a check and be done with it. My dad told me not to buy anything that could not be paid off in 6 months. (except a house).

 

[TimS]

A better question to ask is what length of loan should you get. My strong opinion is

never get a loan longer than 60 months

If the payment at 60 months is too high for you, then you probably shouldn't buy the vehicle. I'd recommend doing 48 months or less if you can swing it. You should also get a lower rate, the shorter the loan duration.

Agreed! and don’t let the stealership sweet talk you into a longer term because your payments will be lower. Financial freedom is way better than any new car. Your future self will thank you for making a reasonable decision.

 

[DD214]

Agreed! and don’t let the stealership sweet talk you into a longer term because your payments will be lower. Financial freedom is way better than any new car. Your future self will thank you for making a reasonable decision.

not to rogue, but I always take a longer loan out, longer for me is 60 months, to opt fo a lower payment in case life throws me a curve ball, like a $1200 electric bill. I also pay the payment each month and on average, pay another $250 per month extra. Not really sure what if anything it save me, but I feel like I have flexibility. I also work in sales some my commission varies month to month.

 

[DrewBronc21]

Just do the math. When APRs were 0-2%, take the longest loan possible with the least money down and put your cash somewhere returning 5-10%. With interest rates higher now, might be smart to take a shorter loan with more $ down.

I always take 72 month loans with a small amount down and then pay extra at the beginning of the loan so I can control how much of my cash I hold on to and keep interest at a minimum. This is better than just buying cash IMO. Paid my 2020 STi off in like 2 years and 2021 Bronco just paid off.

 

[Area51BS]

I wouldn’t buy a Bronco right now. Handing over that high interest is like paying ADM. Ford has been running low rates on other models over past year except on the Maverick and Bronco. We recently got 2.9 on a Bronco Sport. I also agree with others stating no longer than 60/m. That thought may have to change with price of cars going up so fast people might have to go for longer terms.
It all comes down to the buyer. How bad do need a vehicle? Can you afford it? Will you be ok with resale or lack of equity at the end if sold before payoff? Enjoyment/fun factor?

 

[Coralhead]

Just do the math. When APRs were 0-2%, take the longest loan possible with the least money down and put your cash somewhere returning 5-10%. With interest rates higher now, might be smart to take a shorter loan with more $ down.

I always take 72 month loans with a small amount down and then pay extra at the beginning of the loan so I can control how much of my cash I hold on to and keep interest at a minimum. This is better than just buying cash IMO. Paid my 2020 STi off in like 2 years and 2021 Bronco just paid off.

Paid mine off in 30 minutes.

 

[TimS]

not to rogue, but I always take a longer loan out, longer for me is 60 months, to opt fo a lower payment in case life throws me a curve ball, like a $1200 electric bill. I also pay the payment each month and on average, pay another $250 per month extra. Not really sure what if anything it save me, but I feel like I have flexibility. I also work in sales some my commission varies month to month.

Makes sense

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