How many of you will be making two car payments?

[Lakelife36]

Was originally planning a single car payment.

Oak tree fell on wife's Ford Focus.

You could say plans have now changed.

Wife's new vehicle is a Ford Escape, and I could realistically pay it off before the Bronco arrives thanks in large part to the 2022 MY delay. BUT... doing so would decimate my down payment on my Bronco. Mathematically it's the correct move to pay off the Escape, but not sure how that'll impact my ability to get approved for financing on the Bronco... so I've been hesitant to write the big payoff check on the Escape. (If any financial folks are around, feel free to chime in as to which move makes the most sense.)

Questions: What's the interest rate on the Escape and have you compared interest rates on different terms for the Bronco? If you have a really good rate on the Escape and for the Bronco can get a much lower rate on a shorter loan than a longer term one, then a large down payment on the Bronco probably makes sense. If you can then afford both payments at the same time.

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[11Bronco1776]

People on here be rolling in cash. I’m still feeling somewhat guilty for doing this and trading in my vehicle that is paid off lol I was raised to be conservative with my money though, so it’s a mental battle with any purchase

Same boat man. I swore I would never buy a new car. Only idiots did that. Never paid more than 10k for a vehicle and I am almost 40

 

[LikeToTurnLeft]

Crazy, sure. But you’re not alone. I got a 4 digit payment on this bitch. Luckily the bronco is about half the cost. .

We are selling our 2017 Megacab 4x4 Cummins to the dealer on Friday. They’re giving us $54k for it. We paid $59k for it new in April ‘17. Totally nuts. It’ll be nice to get rid of the $900 payment. Sitting on about $35k in equity. Taking $10-$15k of it and buying wifey a used work truck cash. (She’s a mobile dog groomer and needs a tow vehicle) Rest of the money is down on the Bronco. So we’re gaining 2 cars and dropping monthly payments in half. Can’t wait.

 

[mC.242]

Nope, I promised myself I'd only have one payment. Both of my other vehicles are paid off.

 

[PrepVet]

nope.

 

[airishfan]

its only crazy if you are renting a home or you not paying a little extra on a mortgage and not putting money away ever month in a saving .One thing the tell rookies that come into the NFL is that you only need one vehicle because that money could be saved.

 

[Lagrange 6g]

Crazy, sure. But you’re not alone. I got a 4 digit payment on this bitch. Luckily the bronco is about half the cost. .

Worth it sweet truck Get what you want

 

[RagnarKon]

Questions: What's the interest rate on the Escape and have you compared interest rates on different terms for the Bronco? If you have a really good rate on the Escape and for the Bronco can get a much lower rate on a shorter loan than a longer term one, then a large down payment on the Bronco probably makes sense. If you can then afford both payments at the same time.

For the Escape I put 20% down and got a 3.29% loan.

For the Bronco I was planning a $10,000 down, although that bucket of money has grown to be around $16,000 thanks to the delays.

With the Mansquatch being an available option in 2022, there is a very good chance I'll be lowering my trim level from Badlands to Black Diamond. I'm guesstimating that'll lower my MSRP by ~$5000, which means I'll have well above 20% (closer to 35%) for a down payment.

BUT, I suspect switching to Mansquatch means I'll lose my price protection, and with all of the component shortages as of late, the MSRPs may be a fair bit higher in 2022. (If so, I'll just stick with my current order.)

 

[indio22]

People on here be rolling in cash. I’m still feeling somewhat guilty for doing this and trading in my vehicle that is paid off lol I was raised to be conservative with my money though, so it’s a mental battle with any purchase

Some neighbors we thought were rolling in cash (due to vehicles they drove), ended up rolling in debt! So watch out for that.

Also my advise, spend less on material things, and more on experiences. Lower cost model Broncos still have 4wd, top and doors come off, and will get you to a lot of places, if you are up for having those experiences. Cash saved can pay for a lot of trips.

 

[Lab00Rat]

I got off the payment treadmill several years ago and will not be going back. It's a nice thing to pay for something and not pay the bank a dime for it.

However, if my only choice was to take out a loan for the Bronco, I would in a heartbeat!

 

[Dewreckingcrew]

I guess there are a lot of Dave Ramsey fans on here. Cash is king, you should be hanging onto it and using it to make more money when interest rates are this low and inflation is this high. When accounting for inflation, interest rates are actually negative right now.

 

[cowman]

Have not had a car payment in 30 years... pay cash... for one every 2 years... but I'm old and have worked hard to get this way....

 

[TX_Bronco77]

Depends on how long it takes me to get my Bronco, if my Mustang is nearly paid off I'm keeping it and will have two payments for a bit.

 

[Heart2]

I haven't had a car payment or mortgage since I was 40.

 

[akturbo]

Easy math to not pay cash and invest for exponentially higher returns in the market. I'm signing up for loan #2, easy decision with loans <2.5%.

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