What interest rate is everyone getting as of today?

[Rspayde]

LMAO at the old timers with the "Just pay cash mindset". That made sense back in the day when the typically interest rate was 8-10% but now with MOST financing coming in under 5% still it makes zero sense. Go chug your Dave Ramsey juice elsewhere.

Say you get your $50K bronco at 5% interest and take all 60 months to pay off. You are looking at $6Kish in interest over five years. Now lets say we invest that $50K (I know its a down market currently) but I will be damned if you do not make more than the $6K off of the $50K over the life of the financing. You would only need a measly 2.3% annual return to cover the cost of financing.

I am not a smart man and this is not financial advice. Also how many people have $50K sitting around not making them money elsewhere?

Just to contribute to the convo last month we got a 2.99% over 60 months through Ford was D-Plan but unsure if that contributes into the decision plus have bought several Fords over the years which I know helps some.

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[harpo]

LMAO at the old timers with the "Just pay cash mindset". That made sense back in the day when the typically interest rate was 8-10% but now with MOST financing coming in under 5% still it makes zero sense. Go chug your Dave Ramsey juice elsewhere.

Say you get your $50K bronco at 5% interest and take all 60 months to pay off. You are looking at $6Kish in interest over five years. Now lets say we invest that $50K (I know its a down market currently) but I will be damned if you do not make more than the $6K off of the $50K over the life of the financing. You would only need a measly 2.3% annual return to cover the cost of financing.

I am not a smart man and this is not financial advice. Also how many people have $50K sitting around not making them money elsewhere?

Just to contribute to the convo last month we got a 2.99% over 60 months through Ford was D-Plan but unsure if that contributes into the decision plus have bought several Fords over the years which I know helps some.

Although I agree with the sentiment the math is off - you still have to make the monthly payment which reduces your "investment". Or you could include the money you could make by investing the payment you would have made if you didn't pay cash.

As an oldtimer, I'm on the fence and haven't yet decided whether to just pay cash or finance. I have the cash since, luckily, a client was really slow in paying so I got a check this month instead of in January when they should have paid. Lucky because I probably would have invested it and lost 10% to 20%.

I think for me if the rate is over 4% I'll probably just pay cash. (if I ever get the bronco 7/1/22 blend date but still "in production").

Just to make it even more complicated - inflation can push it either way.

 

[pequigah]

Just got 1.49% for 36 months from Dupont Community Credit Union in VA. Everywhere else that I saw was 3.99% or higher.

 

[Mud Dawg]

LMAO at the old timers with the "Just pay cash mindset". That made sense back in the day when the typically interest rate was 8-10% but now with MOST financing coming in under 5% still it makes zero sense. Go chug your Dave Ramsey juice elsewhere.

Say you get your $50K bronco at 5% interest and take all 60 months to pay off. You are looking at $6Kish in interest over five years. Now lets say we invest that $50K (I know its a down market currently) but I will be damned if you do not make more than the $6K off of the $50K over the life of the financing. You would only need a measly 2.3% annual return to cover the cost of financing.

I am not a smart man and this is not financial advice. Also how many people have $50K sitting around not making them money elsewhere?

Just to contribute to the convo last month we got a 2.99% over 60 months through Ford was D-Plan but unsure if that contributes into the decision plus have bought several Fords over the years which I know helps some.

I posted this in another thread, but its probably worth repeating here.

For me the biggest issue with financing a vehicle (which people rarely, if ever, talk about) is the overall question of affordability. I'm not talking about "can you make a monthly payment" as much as I am "what price should you be paying in the first place."

When you stroke one big check you put a whole lot more thought into the total price of what you're buying than if you undertake the more (relatively) abstract idea of taking on a monthly payment. I guarantee you most people significantly "slippery ramp" the price they pay for a vehicle based on the operation of a monthly payment than what they would be willing to pay if they were paying up front.

From a personal finance perspective, affordability really is the most important question, both for your monthly budget and net worth. When people finance, I think they are naturally inclined to play "fast and lose" with both issues. When you pay cash, you've basically put both issues to bed right in the beginning and you don't have to think about either again.

Mud Dawg

 

[Kfonte]

Just got my Bronco today, with excellent credit, at 6.94%. Almost fell out of my chair. I'll be searching some options to refi this week to get a better rate.

Day one of searching and I was already approved for 4.14% for 72 months. I’ll ding my credit searching for a lower rate and possibly getting it down to 60 months, but it’s definitely worth it, if I’m able to find it. Rates are insane out here!!!

 

[RollingRalphie]

I got 2.58% from Delta Community Credit Union in Atlanta, GA. That rate is good for 12-60 months.

 

[Elliott35]

This is, in fact, not basic economics

Nor is it a very good inflation number... PCE Core is 4.69 (Fed preferred measure) & 5y TIPS Breakevens are 2.63%... So even by this flawed logic, the numbers still work.

 

[rayhil67]

I think your location plays a lot with this as well, here in the northeast we tend to get screwed on everything, just like our taxes (PA,NJ,NY,CT, and MA) generate more tax revenue then half the country. I looked at 5 different CU's in my area lowest advertised rate was 3.49@72 My CU beat there adv rate down to 3.29 and then when I walked into the dealership they looked at it and said "ya will beat that" 3.19@72. If i could of forged a preapproval at 3.0% I bet the dealer would have done 2.99.

 

[lexi666]

%3.89 for 60 month

 

[L’s Bronco]

We just got 1.99% for 72 months. APL Federal Credit Union. Laurel, MD

 

[sgraing1]

60 mo. 2.74% Credit Union.
Put just under 40% down on it.
I'm sure I'll pay it off before 3 yrs.

 

[eander]

I just got approved today for 1.99% up to 48 months at Allegacy FCU, Winston-Salem NC. Hopefully picking up my Bronco soon since it’s finally made it to the rail yard. Don’t think I’m going to bother shopping rates any further.

 

[RHeinz]

I got 2.99% for 3 years from my dealer. Plan on making 3-4 payments then pay off.

If you have a loan rate for 2.99% for 3 years and the inflation rate is over 9%, please don’t pay it off until the inflation rate is less that 2.9%!!

Americans don’t understand the economics involved when inflation is high.

 

[Jon_chimpo]

1.99% through Peach State Federal Credit Union for me. Up to 60 months which we took because I can make more than 2% with my money somewhere else . Georgia folks may want to see if they can become members. Great rates!

May that rate, you should pull a second, and third mortgage on your house. Borrow every cent you can, and become rich.

 

[technerd]

I just got 3.99% for 60 months from Bank of America, pre-approved before my Bronco was even on the lot. Dealer wanted me to use their financing, saying they may be able to get me 3.89%, but I opted to go with mine. Once I talked directly to the finance manager, it was fine, though he said it was "a hassle" to use BofA, even though they're one of the partner dealerships... Sorry not sorry. Overall, being pre-approved and providing them insurance and license info hours before, I was in and out of the dealer in under 40 minutes.

I was planning on paying off my Tesla before buying the Bronco, because I didn't want 2 car payments, but the Tesla is financed at 1.89%, so I opted to use that money elsewhere.

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