Ford offering 2.9% for 36 months or 8.9% for 84 months

A cookie-cutter approach to a lifestyle he no longer endures. There is a happy medium of using credit/debt to live your life and achieve goals while simultaneously not tanking your life or your ability to retire later. It is true if you live like a peasant for your entire working life you will save money and likely have more for retirement but ****, you can't take it with you, and what's the point of your time here if you can't enjoy some of life's pleasures?

I have incurred and paid off well over a million dollars in debt and it was from day one a strategic choice. At 42 I own a business that makes me a hell of a living and the only debt I have is the house and cars which relative to income isn't much. I could have never done this without debt. I get it, lots of people suck at using debt and making it work for them, but there are people who use it well. I don't know I'd trust someone who declared bankruptcy ever - debt is not hard to figure out and it certainly doesn't require Dave's extreme approaches in many cases.

I'm the same way. I bought rental properties years ago. Hade several mortgages including my own house. The rentals are paid off-as well as my own home. I retired at 55 years of age because I didn't listen to Mr. Ramsey.
 
With the prices in the car market and far from tempting APRs in the lending world

How good/bad is this guy's credit?

I've also been made aware that car credit is a different score than normal FICO

I'm not jonesing for a $300+ payment for a generation of cars and dealers that are indifferent to my wants and needs

I'm gonna keep my (new and improved) savings in the account, and my (new and improved) superb credit score on the sidelines

More buyer friendly times will come

I'll still ***** about the $300 wheel bearings I just ordered for my Camry
 
With the prices in the car market and far from tempting APRs in the lending world

How good/bad is this guy's credit?

I've also been made aware that car credit is a different score than normal FICO

I'm not jonesing for a $300+ payment for a generation of cars and dealers that are indifferent to my wants and needs

I'm gonna keep my (new and improved) savings in the account, and my (new and improved) superb credit score on the sidelines

More buyer friendly times will come

I'll still ***** about the $300 wheel bearings I just ordered for my Camry
I have no idea what this person's credit is...none of my business. These are Ford's published top-tier credit offers in my area.
 
I was able to get 1.99% for 60-month through my credit union. Dealer wouldn't even come close to it (or try).

I have no problem at all with 1.99%... Sure, 0% is better, but I'm not losing sleep at 2% or under.
 
I have no idea what this person's credit is...none of my business. These are Ford's published top-tier credit offers in my area.
I see

Ford's offering 5.9% for 84 months + $500 cash through Ford Credit
Here in the NYC metro area on several popular models
...that's awful IMO
No wonder everyone's leasing
 
I was under the impression that the automaker's own finance companies only worked with people with good or better credit. They didn't touch people that are credit risks.


I'm pretty confident that no one will get a lower interest rate than that unless it's financed through the automaker. Does any bank or credit union offer anything (much) lower ?
I haven't looked since I'm not in the market but I'm pretty sure I could do better. I have no credit issues. I had no problem getting 0% when it was offered by the dealers a few years back, so I'm sure I would qualify for the lowest possible rate now through a bank, CU, or the car maker.
 
I don't know how old you are but the low interest rates of the past few years are not the historical norm. Folks that expect them to remain this low are in for a shock. Those of us old enough remember interest rates and inflation of 16-20% back in the 1970's during Jimmy Carter's administration. Look it up.
So what’s your point? Don’t take a low interest loan because you remember how it was 16%? My point was that right now you can get your loan way under 4%, as low as 1.5%. Do you suggest ignore this fact and go for 8% loan?
 
For auto loans, I usually just check Penfed Credit Union, right now it's 1.79% for 36 months and 3.99 for 84 months. The 60 month loan is at 1.99, and the 72 is at 2.39%. Used car loans are at 2.39 for 36 months, they only go up to 72 months at 3.39%. They usually have some of the lowest rates around, although if you shop around a little, you might be able to beat the rates by a little bit.


 
Can't stand Dave Ramsey, far to condescending to everyone. Not everybody can pay cash for everything and have zero debt. I'll stick to my method of buying cars with small loans, and paying them off in 12-18 months total.
Like said by someone else it's a an attempt at a "one size fits all" approach, however the majority of people also go way beyond what they should. I would argue that yes most people *could* pay cash for everything less the house if they chose to.
 
A cookie-cutter approach to a lifestyle he no longer endures. There is a happy medium of using credit/debt to live your life and achieve goals while simultaneously not tanking your life or your ability to retire later. It is true if you live like a peasant for your entire working life you will save money and likely have more for retirement but ****, you can't take it with you, and what's the point of your time here if you can't enjoy some of life's pleasures?

I have incurred and paid off well over a million dollars in debt and it was from day one a strategic choice. At 42 I own a business that makes me a hell of a living and the only debt I have is the house and cars which relative to income isn't much. I could have never done this without debt. I get it, lots of people suck at using debt and making it work for them, but there are people who use it well. I don't know I'd trust someone who declared bankruptcy ever - debt is not hard to figure out and it certainly doesn't require Dave's extreme approaches in many cases.
Dave Ramsey from the stuff I heard does not advocate people living like a peasant EXCEPT to pay off all debt for a period and build an 3-6 month emergency fund. Then budget and enjoy life saving money for retirement. I think the budget part trips people up.
 
Nothing wrong with having a loan for 5 years or so if its at a low rate.
Cheap money = free money.
You would have made MUCH more money by keeping those $$ it in a 401K or Roth
the past decade than paying off a loan regardless of your "emotional principals".

But, I have a feeling the fun will be over soon, so maybe now good time to spend some of that cash now
and put it in a more secure and tax sheltered like muni's
 
Ford is just taking advantage of the customer. They know that the average customer can't afford a new car, but wants one. They know that in order to sell that car to them, the payments need to be spread out as long as possible to make them affordable. On top of that, the average customer has poor-fair credit. I'm not sure what the average price for a new car sale is these days, but I bet it's around $30k. Very few people can actually afford that.
 
I haven't used credit for a new vehicle purchase since 2009, when I got 36 months for .9%

If I were to use credit for a vehicle loan, I would use the bank's money instead of my own, provided the loan rate was under the inflation rate. I would use my own if it was just sitting in a savings account drawing no interest, in that case, finance yourself at 3%.
 
I haven't used credit for a new vehicle purchase since 2009, when I got 36 months for .9%

If I were to use credit for a vehicle loan, I would use the bank's money instead of my own, provided the loan rate was under the inflation rate. I would use my own if it was just sitting in a savings account drawing no interest, in that case, finance yourself at 3%.

The issue is could you pay cash for a vehicle TODAY.
Quote-
The average new car price was $37,200 in the first quarter, according to JD Power, up 8.4% from the same period just a year ago.

 
An 84 month vehicle loan... Are people leaving these things to their kids in their final will and testament!? :ROFLMAO:

"And to my son, Boclecius Gentry the Seventh, I leave my F150 Platinum... and the $1042 per month payment that is due by the 12th of each month."
Most likely it will be repo by then and up side down, which is why the 8.9% rate.
 
Ford is just taking advantage of the customer. They know that the average customer can't afford a new car, but wants one. They know that in order to sell that car to them, the payments need to be spread out as long as possible to make them affordable. On top of that, the average customer has poor-fair credit. I'm not sure what the average price for a new car sale is these days, but I bet it's around $30k. Very few people can actually afford that.
Or that Ford doesn't want to deal with this kind of loan for real, and just try to discourage people from it and will resell these loans to another institution (sub prime).

Let's be honest, people who pick these kind of loans are likely going to go up side down and repo, or are high income enough to be worthy of future business.
 
Or that Ford doesn't want to deal with this kind of loan for real, and just try to discourage people from it and will resell these loans to another institution (sub prime).

Let's be honest, people who pick these kind of loans are likely going to go up side down and repo, or are high income enough to be worthy of future business.
Yeah but the 60 months @ 5.9% sucks too and my guess is lots of people choose the 5-year repayment option. Last year and the year before that 5-year loans were 0-1.9% for top-tier credit for many manufacturers.
 
Yeah but the 60 months @ 5.9% sucks too and my guess is lots of people choose the 5-year repayment option. Last year and the year before that 5-year loans were 0-1.9% for top-tier credit for many manufacturers.
It's not clear if those rates were just offered to him because of his credit rating or if those were the lowest rates. As mentioned earlier, Penfed is at 1.99% for a 60 month loan on a new car so interest rates are still low. Maybe they can just jack up the rates because there's so little inventory in stock and they figure people won't shop around that much.
 
Dave Ramsey from the stuff I heard does not advocate people living like a peasant EXCEPT to pay off all debt for a period and build an 3-6 month emergency fund. Then budget and enjoy life saving money for retirement. I think the budget part trips people up.
Yeah, I listened to him for a while. I've paid off seven figures and never had to live like a peasant even while in debt. Sure, I could've paid it off sooner but I had a plan and lived my life at the same time. My only point is he's pretty inflexible when people have any debt and I can hear the lecture in my head because I heard it 1000x on his show, but sometimes it just doesn't fit the situation.
 
Ford doesnt need to incentivize your purchase currently therefore run to a bank or credit union and shop around.

last time there was a 4% difference between the 4 major banks here.. and some will only do a good rate at 24-36 months and others bank rates dont go up until 6 or 7 year loans
 
Back
Top