SAD: I can't afford the new Bronco. :(

[Bronco4lyfe85]

I will side with the crowd that if you are even considering a 72 month loan you cannot afford it. Better to buy a used Jeep cash and grab a Bronco later.

Depends on interest, I’ll be buying it with a 72 month term, I’ve always opted for that route on all my car purchases. I prefer the lower payment if for any reason something comes up. Water heater, AC unit, car repair etc. I save money every month so I live on a lower budget than what I make and I don’t like to touch my savings, I live off my after savings checking. I just send $50-100 extra a month on every payment.

Just a quick generic calculation but 42K @3% for 72 months. $50 will shave 6 months off the loan and will only be about $300 more interest wise over a 60 month loan. I always put money down too though to lower the initial interest peak at the beginning. Bronco should see 6-8K down for me, dropping the overall to mid 30’s or below.

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[Builtdadbodtough]

Devils advocate. People are forgetting some can finance longer (sort of a safety net) for the lower payment and save/pay extra when they want to thereby still paying it off early. I know what the counter argument will be lol but just saying. More than 1 way to do things.

 

[BroncoJay]

My advice don’t come to a forum and ask for opinions on paying for a vehicle

You will get wide array of opinions and that’s exactly what they are opinions.
Only pay cash
Don’t get a loan for longer then 3 years...
Blah blah blah

You need to know what’s best for you and your financial situation...

Vehicles are expensive and are highly individualistic how you want to pay for them...

Take opinions with a grain of salt...

 

[tyrobronco]

I'm kind of confused by the sticker shock posts coming out post B&P. We knew MSRP going in and the pricing survey wasn't wildly off what the package prices are. I was within 2k estimate of what my build would be pre B&P release.

Agreed. My goal was to spend UNDER $50,000.

My preferred options comes to $49,750.

 

[Bronco4lyfe85]

So we’re people financing for 72 or 84 months back then to be able to get into a car? 60 months was not the average.

Oh really? ?

 

[Gamecock]

Oh really? ?

That’s pretty funny...that it was almost exactly the average.

 

[Bvbronco]

Everyone has their different life lessons. Owning a house and 2 cars at 30, assuming you're not underwater on them, is awesome. I shared before on this forum that I had a coworker that traded in his underwater cars every two years and now drives a car where the loan is like $88000 for a car that cost much much less. That's like 2007 stuff. Stay away from it. Both you and I will make mistakes still, but that's how life is. I can afford a decked out Wildtrak or Badlands and it's calling me bad, and I catch myself convincing myself that I should just do it. Haha. Then I have to stop and remember I created a budget for a reason and need to be out the door under $45k. I'm driving to Iowa to pick it up. I want the winch. I can't have it. Maybe in 2 years.

This type of thinking is what will give the ability to retire someday. STICK with it and life will treat you will.

 

[Blksn955.o]

States are moving towards producing more EVs in the next 20 years... not banning ICE vehicles from the roads. I pay a hefty "tax" to register my electric vehicle. Wouldn't be surprised if something similar was applied to gas vehicles on down the road; however, there's no way that the cars we buy today will be banned from the roadways two decades from now. Best of luck to you with your current car-buying dilemma.

I agree gas is here for a long time still and at some point will flip to something like the EV to gas now but the opposite...being toys either luxury/offroad/performance toys. On the tax thing for EV's it is due to the loss of gas tax revenue in many of the examples I have seen as the state/local lose those gas tax (most of the cost of gas) incomes.

 

[Bronco4lyfe85]

That’s pretty funny...that it was almost exactly the average.

I know lol. Look at the prices financed though, that’s why. Cars used to be affordable and now they’re not. Instead of blaming the manufacturers for selling us 50K vehicles that used to cost 10K we shame middle class individuals for not being able to afford them.

 

[Blksn955.o]

Oh really? ?

Interesting between A-D paper you can see the effects or starting effects of early 2000-2001 trends of .com bubble and starting the 0% interest on cars as the shift in A% decrease to D % increases. Would love to see an updated version of this thru 2015 or 2019 to see the effects of the housing bubble and people shifting auto loan debt into mortgage debt...then the fallout in respect to the default in mortgages to growth and shrinking of A-D.

 

[Builtdadbodtough]

Depends on interest, I’ll be buying it with a 72 month term, I’ve always opted for that route on all my car purchases. I prefer the lower payment if for any reason something comes up. Water heater, AC unit, car repair etc. I save money every month so I live on a lower budget than what I make and I don’t like to touch my savings, I live off my after savings checking. I just send $50-100 extra a month on every payment.

Just a quick generic calculation but 42K @3% for 72 months. $50 will shave 6 months off the loan and will only be about $300 more interest wise over a 60 month loan. I always put money down too though to lower the initial interest peak at the beginning. Bronco should see 6-8K down for me, dropping the overall to mid 30’s or below.

Exactly what I was trying to say just below you. Just let the judgy people judge lol

 

[Geekytrails]

My plan is get a 4th gen 4runner while I save up. Between saving and vehicle depreciation I am sure I can get exactly what I want in a couple years. The only sacrifice is I have to wait longer.

 

[Bronco4lyfe85]

Interesting between A-D paper you can see the effects or starting effects of early 2000-2001 trends of .com bubble and starting the 0% interest on cars as the shift in A% decrease to D % increases. Would love to see an updated version of this thru 2015 or 2019 to see the effects of the housing bubble and people shifting auto loan debt into mortgage debt...then the fallout in respect to the default in mortgages to growth and shrinking of A-D.

Id have to search but I did see the average car price went from 23 to 37 in the last 15 years. Insane.

 

[Bronco4lyfe85]

Exactly what I was trying to say just below you. Just let the judgy people judge lol

Lol yeah. Everyone has their own way of doing things. I don’t fault people who say only pay cash or don’t do more than 3-4 years. If interest is low the difference is barely noticeable.

35K @1.9% is like 2K in interest over 6 years. At 36 months it’s 1K in interest but your payment is double per month. $50-100 extra a month will save $2-300 in interest over 6 years. $700? Meh. Less than a weeks wage.

 

[csj]

I've noted several times on this forum don't buy into the hype, it's just a vehicle. A lot more people buy new vehicles than really should, it's an unwise financial move for almost everyone. Wait a year or 18 months after they hit the streets, there'll be many lightly used ones available. Yes, they probably won't depreciate as much as most vehicles, but a lightly used one will still be a much smarter buy than a new one. A vehicle is way down the list of the important things in life.

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