How much money down y’all putting?

[Phil_68w10]

Somewhere between 10-15%

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[Grooticus]

Good news, bad news. The bad news is the Bronco has been delayed and you aren’t likely to get yours til at least August. (Obviously you know)
the good news is at $1,200 a month you will probably have another $10,000-$12,000 saved before delivery...silver linings? Lol

 

[AMK610]

yeah 2020 ended up being a great year with a really nice rebound from march. i feel so bad for people who got emotional, tried timing the market, and pulled out earlier this year.
I agree with you that the $50K should remain invested rather than pulled out to pay cash for the bronco. Another big hurdle would be the taxes on the withdrawal, which would be a case by case basis. But regardless, the taxes paid would most likely be higher than the total interest you'd pay on the loan. plus the lost opportunity of earning more growth on the funds, if they wouldve remained invested

 

[da_jokker]

Talk about timing... i just woke up the other day thinking about this. Right now I pulled my "Bronco" Investments because of the instability of the market. Of course this was back when we thought we would have been ordering and getting our Broncos sooner than later, but whatever.

Anyway, I know that it makes more sense to keep my money invested than to pay cash. However, I hate ongoing obligations due to future uncertainty vs one time monies.

Part of my dilemma also is that I plan on selling 2 of my vehicles which will pay for a decent chunk of my Bronco. However I can't sell them both until I obviously have the Bronco to Drive. This means that I have to "borrow" at least that much to then sell later and payoff the loan.

So here's what I'm thinking, and would be curious as to The opinions of some of the financial savvy folks here...

I can swing say a 300-350 monthly payment without denting my monthly income surplus to bad. This roughly translates to about 20k loan at 60 months (i believe)

So thinking I keep the Bronco money as cash, but take 20k of it and get it back into the market where I should be able to pull 15-30% providing the markets don't collapse..
But in case it does and I have to leave it tied up post Bronco Delivery, I can swing the Payments.

So simply put and using rough numbers..

Keep 40K liquid and safe
Put 20K back into the Market
Finance 20K at a <= 3% for 60
Allow the 20k investment to continue to make money until whenever (as long as the return is significantly more than the 3%)

Seems like it makes financial sense...but dam, I hate car payments!

 

[BigSki150]

I’m very glad you posted this. I recently moved to SC and their government tax page confused me but I understood it as you described. Seems $500 in taxes isn’t bad at all. Some other states don’t have a “max tax” format. So it’s a flat (up to 10% in some states I have seen) rate depending. Seems brutal. I’ll gladly accept my 1k below invoice (thanks Stephen’s) and $500 max tax.

Where in SC did you move to? I'm also buying my Bronco from Stepehens.

 

[BigSki150]

I’m very glad you posted this. I recently moved to SC and their government tax page confused me but I understood it as you described. Seems $500 in taxes isn’t bad at all. Some other states don’t have a “max tax” format. So it’s a flat (up to 10% in some states I have seen) rate depending. Seems brutal. I’ll gladly accept my 1k below invoice (thanks Stephen’s) and $500 max tax.

I also forgot to tell you in South Carolina you can transfer your current tag to your new one and skip paying the County Property Tax until your registration needs to be renewed. I'll use me as an example. I hope to get my Bronco by August or September with a fist day Reservation, The taxes on my Jeep Grand Cherokee are due by the end of August. I pay the tax on that and transfer the Tag and won't have to pay taxes on the Bronco until August of 22. By then it will have some depreciation but it will save you some cash.

 

[AMK610]

Talk about timing... i just woke up the other day thinking about this. Right now I pulled my "Bronco" Investments because of the instability of the market. Of course this was back when we thought we would have been ordering and getting our Broncos sooner than later, but whatever.

Anyway, I know that it makes more sense to keep my money invested than to pay cash. However, I hate ongoing obligations due to future uncertainty vs one time monies.

Part of my dilemma also is that I plan on selling 2 of my vehicles which will pay for a decent chunk of my Bronco. However I can't sell them both until I obviously have the Bronco to Drive. This means that I have to "borrow" at least that much to then sell later and payoff the loan.

So here's what I'm thinking, and would be curious as to The opinions of some of the financial savvy folks here...

I can swing say a 300-350 monthly payment without denting my monthly income surplus to bad. This roughly translates to about 20k loan at 60 months (i believe)

So thinking I keep the Bronco money as cash, but take 20k of it and get it back into the market where I should be able to pull 15-30% providing the markets don't collapse..
But in case it does and I have to leave it tied up post Bronco Delivery, I can swing the Payments.

So simply put and using rough numbers..

Keep 40K liquid and safe
Put 20K back into the Market
Finance 20K at a <= 3% for 60
Allow the 20k investment to continue to make money until whenever (as long as the return is significantly more than the 3%)

Seems like it makes financial sense...but dam, I hate car payments!

so you're taking an extra $20K out, and then reinvesting it once you sell your 2 other cars? is $20K the amount you're assuming you'll receive in proceeds from your 2 cars?

 

[72BroncoSand]

100% down. First time I’ll be able to do it. I am quite proud that I’ve resistEd temptation for five years and have built a nest egg for this very purchase. Thanks Tesla stocks!

 

[Heffe66413]

Paying cash. My parents taught me that if you can't pay cash, you can't afford it. Do people really finance cars?

I'm just kidding. My interest rate will likely be 0% - 2% and I make more than that in the market, so I'll probably finance half of it.

You have wise parents!

 

[da_jokker]

so you're taking an extra $20K out, and then reinvesting it once you sell your 2 other cars? is $20K the amount you're assuming you'll receive in proceeds from your 2 cars?

Yes/No... The sell of the 2 should net me at least 25k ... the 20K is basically because That amount of Loan puts my monthly around that 350 mark.

 

[DrunkingtonBear]

Where in SC did you move to? I'm also buying my Bronco from Stepehens.

I live in the upstate in Greenville. Moved down for work. I’m a contractor so I kind of just go where the money is good.

 

[sscott87]

you have the cash because you didn’t put it down so are you really upside down? If something goes wrong, in a pinch you have that liquidity to bail yourself out

Sure, if you still have the cash. A 5, 6, 7, and now 8 year car loans though, hard to say what’s some years down the road Not everyone is sitting on a $50k bank account at any given time (or whatever number you want to use, but enough to pay have a large sum on a loan and not wipe the savings dry).

At the end of the day, we’ll all have different preferences for money management. What matters most are educated decisions and not living outside your means. ?‍

 

[SammyB]

It’s about 9 percent tax in Cali

bro, get out now. (Says a guy from PA :/)

 

[dwbronco]

Right now my CU has my rate locked at 2.49 (2.99 for non-veterans) which is the lowest rate based on credit score. If a member requesting a loan can put at least 10% down on the purchase of a new vehicle, they will take one full point off the interest rate of the loan. It's a way they incentivize putting a proper down payment on a vehicle and it lowers the risk of depreciation for both the borrower and the lender. Nobody wants to be upside down.

Which CU?

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