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

[kd.overland]

Not looking for details, but curious for those of you who are financing through the dealership, what length of loans are you getting? Thank you.

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[Cheshire]

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.

 

[Layman]

I am with Chesire. If anything longer than 60 months is required, you might be biting off more than you can chew. That being said, lots of people do it, but it is not for me. 72 and 84-month loans are commonplace nowadays. A quick google search tells me the average term length of a new car loan is 70 months. There are folks out there financing for 24, 26, 48-month terms. So to get an average loan term of 70 months, there have to be folks out there financing at much longer terms in order to get a 70-month average.

I drive right around 20k miles per year. So at 60 months (5 years) I am right around 100k miles. Time to trade at that point, and no negative equity to roll into a new loan.

 

[Gizmo]

I am with Chesire. If anything longer than 60 months is required, you might be biting off more than you can chew. That being said, lots of people do it, but it is not for me. 72 and 84-month loans are commonplace nowadays. A quick google search tells me the average term length of a new car loan is 70 months. There are folks out there financing for 24, 26, 48-month terms. So to get an average loan term of 70 months, there have to be folks out there financing at much longer terms in order to get a 70-month average.

I drive right around 20k miles per year. So at 60 months (5 years) I am right around 100k miles. Time to trade at that point, and no negative equity to roll into a new loan.

We have lenders that will do 10 year auto loans, the interest you pay is wrong and sick

 

[bsaintp64]

Financed through Ford yesterday, they offered up to 84 months

 

[RYD003]

1 week

 

[JetG]

Financed through Ford yesterday, they offered up to 84 months

What percentage rates is Ford offering?

 

[bsaintp64]

What percentage rates is Ford offering?

I was pre-qualified through usaa at 5.99 & ford matched it.

 

[JetG]

I was pre-qualified through usaa at 5.99 & ford matched it.

Thanks just curious as I am about to buy another one. I will shop the rate once I know the dealers offer.

 

[Grumpy]

I took delivery in Aug 22, my dealer wanted me to finance through them once I showed up to take home. They showed me several ways they could go. I told them no, I'm a USAA member and I do all my financial deals through USAA. They were very unhappy with my decision and in fact tried to put add-ons to the final price. When I saw this I immediately got up and told them I was leaving. The sales manager came out and acted like he knew nothing of what's going on. He corrected the numbers, I closed the deal with USAA and left. The next day, I chose a different dealership to deal with and been happy since.

I went with 48 months, and dealerships usually can't compete with military credit unions. But that is not my problem!

 

[PA BRaptor]

Everyone’s financial situations differ. Don’t do a deal that adds pain to yours.

 

[telenerd]

I didn’t buy a raptor, but got a 2 door badlands, Sasquatch . 57k msrp. $3400 tax and around $800 for plates. Insurance is quite cheap.

What I did I broke all my expenses into a spreadsheet and then used an auto calculator and put in some numbers. One column had amount down with various amounts. Then the other column had payment and last column had interest paid over term of loan. So after number crunching I determined a longer term loan was impractical and costly. I ended up doing an 3 year loan, put 21k down, and my payment is around 1200. I also pay principal payments each month and calculate I can have Bronco paid off in less than 2 years.

Here is an example of my sheet. The key is breaking out all your expenses into a sheet first and then determining what payment you can afford. A lot of people forget about having money set aside for tax and plates so end up putting less down. The dealership and bank wants you to choose the longer term loan.

	Total Price	57000
	Down Payment	25000	32000
	Interest	6%
	Tax	3420
	Loan Time	48	60	36
	Payment	$751.52	$618.65	$973.50
	Total Interest	4,073.00	$5,118.98	3,046.07
	Total Price	57000
	Down Payment	20000	37000
	Interest	6%
	Tax	3420
	Loan Time	48	60	36
	Payment	$868.95	$715.31	$1,125.61
	Total Interest	4,709.41	$5,918.82	3,522.02

 

[real3d]

I used one of my credit unions. (2023 - 2 door badlands, Sas, Lux, & Tow). When my dealership asked me about financing and I stated that I had that taken care of, they tried everything to get me to finance through them. However, they couldn’t beat the 2% interest rate for 60 months. And if I had done 48 months with my credit union, it would have been 1.5%.

 

[FLSTFI Dave]

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.

I fully agree, usually only do 48 months. In 81 when I went to by my first car, I wanted to do 48 months, dad said not, I won't cosign. He pushed for 36 months. We finally agreed on 42 months.

He stressed on length of loan, but also on not ever being upside down. Dad was a loan officer at the local bank.

The Bronco Raptor is my second loan the was 60 months, did the same on my Corvette but paid it off in 50 months. I am not upside down on the Raptor, I bought it MSRP and put 30K down.

I would never go over 60 months. Yep banks will got 84 and some even longer. Just because they will doesn't mean its financially smart for you, it sure is for them.

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