Is this financially irresponsible?

[TheWoo]

The answer to any question that begins with "Is this financially irresponsible?" is 99.7% likely to be yes. Don't even need to read the actual question.

I know, because of so many of my own experiences.

Now bring on my Badlands 4dr LUX.

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[Broncomputer]

I wanted a Black Diamond, but it couldn't have the Mid Package with the Manual.

So I got a Badlands with a High Package.

I'm not smart.

 

[Fordmanbob]

I ended up deciding on the Black Diamond. My friend helped me work through the decision, "Just because you have bigger tires doesn't mean women are going to hop in and try to have sex with you."

WHAT?????

 

[GToddC5]

I wanted a Black Diamond, but it couldn't have the Mid Package with the Manual.

So I got a Badlands with a High Package.

I'm not smart.

EXACTLY! That makes two of us

 

[Brongo]

Consider my order cancelled then!

I've been doing it wrong all these years.

 

[Bud2020]

OP sounds very familiar...

 

[Bud2020]

I ended up deciding on the Black Diamond. My friend helped me work through the decision, "Just because you have bigger tires doesn't mean women are going to hop in and try to have sex with you."

 

[old goat]

you sir are a genius , cancel order and go play the stock market and get rich

 

[bgcfman]

Since I have all this time on my hands waiting for word that production has started, I am constantly looking at B&P thinking, maybe I should not get a BL and go with a loaded BD? Then I look at the price difference and break it down per year, per month, per day, and tell myself "wait a minute, a BL is only the cost of a cup of coffee each day! I can do that!"

Is that genius or what?

I went all in at the end. I had convinced myself I didn't need squelch, but my better senses came into play. BLsasLux,leather and a few more things. Leather for the Mrs. I want finance....if we have to finance something we don't buy it. It's great to be debt free!

 

[abe]

Nothing about these Broncos is fiscally responsible lol

 

[JDS]

Financing over the longest term possible is always the most financially responsible thing to do provided your interest rate is 0.00%

 

[PowPow]

Only if you fail to understand the qualifier "If you have the money"

Based on what I've observed from some of the people I know in debt, they never had the money or the means. It's up to the individual person to know what they can swing.

But then again I've also been called out on the forum for saying if a $500 deposit financially strains someone they need to reconsider a vehicle that starts at north of $30K.

yeah man. 100% agree.

I'm of the mindset if you can't put at least 20% down, you probably shouldn't be purchasing this vehicle/trim, whatever. Also, while I'm giving out free advice, lol, if you can't pay it off within 60 months, you also probably shouldn't be purchasing this vehicle/trim.

 

[PowPow]

Financing over the longest term possible is always the most financially responsible thing to do provided your interest rate is 0.00%

was that sarcasm? i hope?

that's not true at all. Cars lose value instantly, and depreciate more than probably any other commodity you own. Stretching out the term even at 0% interest just gets you underwater quicker.

Plus inflation. $1 in 2021 won't be worth the same in 2026 or '27 or whatever you're stretching that loan term to. So, you're actually paying more for it, even though you think you're not, because it's 0% interest.

 

[Taco_Sexual]

Didn't Warren Buffet, for the longest time, own and drive a Honda? A lot of well-off individuals avoid new cars like the plague b/c there's zero financial sense to buying a new vehicle if your current one doesn't need replacing. If you're financially able to make the purchase without sacrificing basic needs and also still saving for the future then do what you wish - but make no mistake that buying a new car is never financially smart.

 

[JDS]

was that sarcasm? i hope?

that's not true at all. Cars lose value instantly, and depreciate more than probably any other commodity you own. Stretching out the term even at 0% interest just gets you underwater quicker.

Plus inflation. $1 in 2021 won't be worth the same in 2026 or '27 or whatever you're stretching that loan term to. So, you're actually paying more for it, even though you think you're not, because it's 0% interest.

I think you have that turned around. this is an expense
1) The price of the vehicle is valued in CY 2021 $. You are taking that price(lets assume you have 45k over 5 years ($750/mo). The payments are constant. They don't go up as inflation depresses the value of the dollar. Which means the 1/60th level set payment is worth less and less to the BANK accounting for inflation. As long as your revenue (wages) tracks with inflation, you win. Plus you could put the $45k into a very low interest bearing instrument and bend this equation in your favor even more.

2) The issue of depreciation happens no matter how you pay for the vehicle. If you paid cash, the value of your asset depreciates, you now have less. Same as you pay over time. That is a different kettle of fish entirely.

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