Question / opinion on financing

[Granger Ford]

One pay lease saves some juice on the deal but it will be a hunk of $$ has worked well for me when I leased...

and I agree with @jaruss01 on the do not lease anything that has poor resale and residual numbers.

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[NotApplicable]

I don’t think you can always recast auto loans after making lump-sum payments, so YMMV with reducing your payment after a lump sum without refinancing

 

[jaruss01]

when it comes to leasing, you actually want a minimal down payment. if the car is in a wreck, i heard you walk away from your down payment. the financial company gets paid off. not sure if that is different in a one payment lease.

 

[VictoryLights]

Can you send a link to something that shows that Ford offers 1.9% on any vehicle.

 

[Granger Ford]

Insurance settled the claim and the excess came back to me...

 

[MadMan4BamaNATL]

Nope never put anything down on a lease. Thats stupid for other reasons. I always roll in the down payment into the monthly, and pay the bare minimum to walk out the door.

My problem is that im so accustomed to leasing 40-50k cars for 350/mo (under REALLY well negotiated lease deals - nothing down but tax and title). And steer very clear away from brands that dont lease well.

Which is why i want my payments low. But i suppose my options are big down payment. Or typical down payment, and in a year, if there are no bugs i could refi into a lesser loan amount to lower my payments....and if for whatever reason rates are horrendous, I'll wait a year for no bugs and if there are no better refi opportunities, then i would just pay off the entire car in the following year or two (which im not opposed to if rates are 4-5+%).

Although my neighbor recently bought a wrangler in cash and the thing was out of commission for 6+ months for a problem jeep gave him a hard time fixing under warranty. Fixed now, but Im sure his advice would be DONT DO IT.

Gotcha. Yeah, anything under $700 per month is a normal financed car note for 60 month loans, milage varies.

Only caution I'll give is in talk of refinancing a car loan; I wouldn't. Only time that makes sense is if you plan to keep the car and when you originated the loan, had poor credit (less than 650 FICO), well that's not poor, but it isn't good either, so sub prime.

Anyway, for someone who got a loan at 620, but is now at 700 after 15-18 months, sure if you're not upside down on the car, but if there wasn't a down payment, you may be which means you'll owe the difference, most just roll this difference into the new loan. This is why it's bad money.

If you've got good credit, shop for the best interest rate you can. Spec the car the way you want so you're not pissed later while paying for a car, then enjoy the thing.

 

[VictoryLights]

I can't imagine leasing one of these if you have any thoughts of off roading it.

 

[bigjwalt]

I must be in the minority here. I still see $500 a month as a high car payment as I haven't had a car payment in 18 years. Vehicles are depreciating assets, just pay them off in cash unless you are getting financing below 2%.

 

[scotts418]

So I have always leased my cars. I dont think this will lease well, so i will buy.

My income is very much split between lump sum annual bonus/commission, and a base salary. I really like the idea of having low payments through out the year for real-feel cash flow, and it's less sweat to make a big payment once a year.

That said, i really want to keep payments at exactly $500/mo, and will front load a down payment. I was thinking of maxing out Ford 1.9% APR @ 72 months, and then putting whatever down to back into $500/mo. I dont have a trade-in, since all my other cars are leased. After doing the math is looks like around a $20k down payment (inc tax, fees, etc) for my build.

Given the low rates, could i put my down payment money aside and use it towards the bigger bills? sure. But mentally, i just do not want to look at a ~$800 bill every month.

Does that sounds like the right approach? I am a bit weary of tying up all that money in the off chance my model Year 1 car has flaws, or is potentially a lemon....and i have to wait to get my money back, versus just returning the car....Another idea is to put less of a down payment, then wait a year to see if any major problems arise, then I could make a big lump sum payment to get my payments adjusted down to $500/mo. So my question in that situation is - will Ford adjust down my monthly payment, or will they just shorten up the term and keep my payments the same?

Based on low auto rates (2-3%), i would highly recommend against significant down payments on any vehicle. I know it feels better to have a lower payment, but making an extra payment each year significantly cuts into the already low interest costs and keeping funds in your account is much safer in case emergencies arise. This will be the first car I purchase that exceeds the $500 payment myself (I don’t normally spend big $ on cars), but if it’s something you love and will take care of, it’ll be worth it.

Don’t let the payment distract you, just consider the total cost.

good luck!

 

[SeventyOne]

Can you send a link to something that shows that Ford offers 1.9% on any vehicle.

36 and 48mo are 0%, 72 months was 2.9

 

[broncoj11]

I saw a few articles describing their current financing. They have a new flex financing concept that a lot of ppl are reviewing (and bashing it) and comparing / recommending to go for their current 1.9% offered for 60 or 72 mos

what’s the credit criteria for fords 1.9% financing?

 

[Rangerz520]

This is my first post because none of you answer his easy direct question. NO Ford will not change your payment if you send in a lump sum. If your payment is 800 it will always be 800 unless you refinance. If you can get 1.9 go fo it. If Ford takes away a discount of say 4000.00 too give you the lower rate don't do it.. It takes the whole term to make that back up. Most people trade early. Use this to help.-- 16.00-18.00 A month payment for every 1000.00 spent at a low rate. So 50K car cost 800.00

 

[Rangerz520]

700-750 is a good credit score. Very few ever make it to 800

 

[WuNgUn]

We have plenty saved. 20k in a car doesn’t put us at any risk. Putting personal finances aside -

Question is moreso am I thinking about this right? And will Ford lower my monthly if a make a big lump sum in Year 2?

Nope... You'll just come to the end of the term sooner....
It's always wise to maximize your DP when interest is involved.

 

[WuNgUn]

Can you send a link to something that shows that Ford offers 1.9% on any vehicle.

I got 0% for 72 months last year on my Escape.

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