Whoa, Nellie! Avg monthly payment > $700.

[mybikeisred]

$700 or more per month in payments for one vehicle is insane for most Americans. I could afford $700 per month, but I can’t rationalize paying $700/month for 6-8 years. I’ll have my base bronco paid off in 4 years with a big downpayment and ~$350/month payments.
FOMO, YOLO, and low interest rates should not be enough to justify 700+ Per month for 8 years. Yikes.

A high monthly payment doesn’t bother me that much, but a long term loan does. My Bronco will probably be beat to absolute shit seven years from now. I can’t imagine still having another year of payments on a busted ass 7 year old vehicle.

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[TahoeTexan]

Just curious...What did you invest the $3500 in? Stocks, bonds, Gold? Most folks that I have talked to and say they borrow because the rates are low, never put the savings into anything. In the long run they are out on both ends.

Valid point. It's only "saving" if you save/invest it. My APY IS 1.9% and I definitely added the APY savings + the decrease in my monthly payment to my investment account.

But I bet most don't.

 

[FormerJeepJunkie]

I do find it a bit comical when people say things like “I’ll never pay a $x car payment. I put down $x (or paid cash).” Paying cash or a huge down payment doesn’t change the cost of the vehicle. A $60k bronco is $1000 a month without interest if you just decided to save up for one (if you saved 5 years). Pay yourself or pay a bank- it’s still a hefty amount of money.

For me, I don’t have any other debt but a car and house. But I also know how to leverage my own finances to use the money properly. A 4% interest rate means I can have a bank give me money that allows me to free up a cash investment for something else. If I make that or better- I’m ahead. Right now, a trade in of current vehicle actually outpaced the rate to paid for the loan. Win win.

Just saying it is easy to point at others and say “I’d never”-but the reality is that you kinda of already did when you saved up for said item. The expensive part isn’t the interest- it’s the darn car you are taking possession of.

 

[carrellslake]

Just curious...What did you invest the $3500 in? Stocks, bonds, Gold? Most folks that I have talked to and say they borrow because the rates are low, never put the savings into anything. In the long run they are out on both ends.

I contribute money from my paycheck pre-tax to a 457(b) retirement account through my employer. The low down payment allows me to continue doing that.

 

[BroncoAZ]

My wife and I have $942 in car payments monthly, but we have zero other debt. I got mine in December 2021, $47K MSRP, $50,500 out the door. I put $11K down and financed $39.5K at 1.99% for 60 months. Payment is $663 per month. I have to restrain myself not to just write a check and pay it off, but we are waiting for the market drop to buy a home so I need to keep the war chest.

I have a Ford Lightning ordered, the $46K Pro model. Depending on interest rates I might just write a check on that one. My line in the sand is 3.5% for at least 48 months.

 

[Carolina Jim]

I pay over three times what you do for probably half the house that you have.

lol...yeah....but in Carmel you live next door to Clint Eastwood, in one of the most beautiful spots on the planet

 

[mybikeisred]

lol...yeah....but in Carmel you live next door to Clint Eastwood, in one of the most beautiful spots on the planet

Clint is kind of a dick.

 

[AZ_BRONC]

I only financed $20k of my Bronco (at 2.5%) so I could throw $20k in I-Bonds currently at 9.6%. Not all financing or leverage is stupid.

 

[Carolina Jim]

Clint is kind of a dick.

Maybe....but even his yard maintenance guys are prolly driving new Broncos

 

[mybikeisred]

Maybe....but even his yard maintenance guys are prolly driving new Broncos

I doubt that. Maybe his landscape contractor. His ex wife Maggie is awesome, but his kids suck too, at least the ones I’ve met, never met the two younger bimbos. He’s probably gonna die any day now, he’s about the only local celebrity we have left since Betty White and John Madden dropped dead. We used to have a pretty big list.

 

[vzqhsg]

I do find it a bit comical when people say things like “I’ll never pay a $x car payment. I put down $x (or paid cash).” Paying cash or a huge down payment doesn’t change the cost of the vehicle. A $60k bronco is $1000 a month without interest if you just decided to save up for one (if you saved 5 years). Pay yourself or pay a bank- it’s still a hefty amount of money.

For me, I don’t have any other debt but a car and house. But I also know how to leverage my own finances to use the money properly. A 4% interest rate means I can have a bank give me money that allows me to free up a cash investment for something else. If I make that or better- I’m ahead. Right now, a trade in of current vehicle actually outpaced the rate to paid for the loan. Win win.

Just saying it is easy to point at others and say “I’d never”-but the reality is that you kinda of already did when you saved up for said item. The expensive part isn’t the interest- it’s the darn car you are taking possession of.

You don't save up. You get out of debt and become your own bank. You have the money because you are not paying on a house, car, credit cards, etc. You pay yourself, not the bank or credit cards, bank, etc. To borrow money to invest is nuts. I'm not pointing, but trying to get folks to see the errors of looking at loans as a way out.

 

[SubmarineNuke]

Where on earth did you get 2.5% on a 72 month term with little/no down? One of the best credit unions in my area is 3.85% best rate for 72 month with strong LTV down payment.

I got 2.04% with Navy Federal for 72 months. Been with them since 93 and have almost 800 credit score.

Good rates existed (until a couple of weeks ago) if you had the credit and relationships

 

[Jdc]

Technology and regulations are also driving up the cost far more than when most of us were in our budget-minded vehicle buying days.

Increasing emissions measuring/standards, mandated backup cameras, computer back boxes with compulsory uplinking to manufacturer databases, etc. All of that stuff is comparatively expensive, and wasn't required on tons of relatively modern vehicles.

The days of cars being a mainly mechanical system are dwindling.

Regulations are a BS excuse automakers use to jack up the price. They add a few hundred bucks of mandated equipment and then charge thousands. That stuff isn't expensive.

 

[DrewBronc21]

I dont like excess debt so I put down over 1/2. My Bronco payment hovers just over 300/month With a 2.5% interest rate. I cant imagine having a 7-800$ payment. It just seems so taxing to have a bill close to a mortgage payment.

you’re not in debt If you have the cash to pay it off at any time.

 

[0ne]

The rates some have gotten are amazing but definitely from earlier this year and last year which makes sense. With the number of folks responding that they worked enough OT to pay in full or make large down payments I’m finding it hard to believe that the economy and finances will crumble. Things couldn’t stay cheap and easy forever. You just have to keep working and make decisions on what is most important. No more bubble economy, just steady existence and modest growth.

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