how to finance?

[Bronco4lyfe85]

Didn't intend on ruffling any feathers so my apologies.

I just simply meant that financially speaking, they say Car payments should not be more that N% of your monthly income. And if a $800 payment falls under that, then one would think you are pretty well off and therefore have more money to put down.

For me, I hate obligated financial commitments, especially on something that depreciates so bad. You never know what can financially happen in the next 4-7 years and that is a big financial commitment. I'm all about one time monies if it makes sense.

And yes, I've actually purchases 4 new cars in the last 10 years...but I bought them... not borrowed on them.

So for the Bronco, I will be putting down as much as it takes to keep my payment around 200-250 per month. I am concerned about the interest rate as well because the worse it gets, the more money I have to move around..


** EDIT **
Monthly payments (including insurance) should be less than 10-15% of your take home.

But I am definitely a believer of each to their own. We were just talking Finance so just tossing in some Financial advice that's all.

10-15% makes sense. We’re currently less than 10% and will be roughly 12% with the Bronco and my challenger.

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[XCR440]

Too far away to get serious on a rate right now, results of the election and what that does to the economy will be a big factor on rates next summer/fall.

Currently the local Credit Union offers 2.24% (with 730 credit score, -.25% if already a member), Ford Credit is so high they don't even publish rates anymore, but figure 5-6%. Most will only lock in a rate for 30 days.

 

[Austin26]

Oh, I forgot I had something to contribute to this thread. The wealthier and obviously successful customers I had when I sold cars said the best way to purchase in if given an additional rebate if you financed with the manufacturer is to do so and then immediately refinance with your credit union. Now, this will later hurt the dealership when the refinance happens so maybe don't broadcast it as I sure didn't. If there is no financing rebate, always outside finance with your bank or credit union.

 

[da_jokker]

A similar trick is the 1st payment. Say for example there is an offer for $x off if you finance via the factory.. but you must make at least N payments.

So what you do is finance... take the discount, then on the 1st payment, pay off basically the entire thing and only leave a balance that equals the remaining necessary payments.

What this does is allow you to get the discount, but not be on the hook for all that interest since the interest is charged on the remaining balance.

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