Financing Gen3 purchase

[AxelR]

Just flat out crazy to finance for 72 or 84 months. It’s a vehicle not a house! If you need to finance for that amount of time you can’t afford it.

Makes you wonder why all these banks offer those loan terms if the risk is so high. They obviously don’t know anything about making money and risk management.

 

[Honeybadger_Zero]

Since MY2022 orders are getting scheduled, I would like to find out about financing options. Looks like Raptors don't qualify for Ford Credit deals.
Any insights into this would be very helpful ... I am thinking at least MY2021 owners must have financed their purchases. Thanks in advance.

@DeckTenRaptor I have a thread I started here for this subject, several posts had good resources for best rates.

 

[EMY92]

If You Can Swing It, Cash is King !!

In the old days that was true when buying. Now, the finance dept. is a huge profit center for dealerships. They prefer to finance over cash.

That said, I will be trading my Gen 2 and paying off the difference before leaving the dealership. This is assuming my Gen 3 ever arrives or I don't get ticked off that 22s are shipping before my 21 and cancel.

 

[spizike9]

Just flat out crazy to finance for 72 or 84 months. It’s a vehicle not a house! If you need to finance for that amount of time you can’t afford it.

Thanks mom

 

[GordoJay]

Makes you wonder why all these banks offer those loan terms if the risk is so high. They obviously don’t know anything about making money and risk management.

Actually they do. How many banking crises have we had in the last few decades? How many times did the Fed step in and bail out the banks? Obama couldn't shovel money into their pockets any faster if he had wanted to. And he was just following GW's lead. So loan it to losers at low rates in the face of inflation? Sure. Why not? Heads they win, tails taxpayers pay the loss.

 

[melvimbe]

Makes you wonder why all these banks offer those loan terms if the risk is so high. They obviously don’t know anything about making money and risk management.

I don't think the point was that banks are crazy for offering these loans, but that people were crazy for accepting them. I would agree that if the only way you can afford a vehicle is with a longer term loan, you probably should be looking for a cheaper vehicle. However, a long term loan can make some sense if the rate is low, and you have other plans for your money.

Unfortunately, much of the time, dealers will try and sell you on the lower monthly payments of a long term loan, hoping you don't pay attention to the interest rate and total cost of the vehicle.

 

[nikhsub1]

Just flat out crazy to finance for 72 or 84 months. It’s a vehicle not a house! If you need to finance for that amount of time you can’t afford it.

Not when you can use someone else's money at a low APR... For example, I got my daughter a car (toyota) and I financed it with a 0% APR for 5 years. Sure, I could have paid cash for the thing but why not use their money? Your statement is just hyperbolic horseshit.

 

[sf2360]

Not when you can use someone else's money at a low APR... For example, I got my daughter a car (toyota) and I financed it with a 0% APR for 5 years. Sure, I could have paid cash for the thing but why not use their money? Your statement is just hyperbolic horseshit.

I could make a 8-15% return on my money all day long. Why give your money upfront when you can leverage a loan.

 

[Mazzdog]

I could make a 8-15% return on my money all day long. Why give your money upfront when you can leverage a loan.

That works… until it doesn’t..

 

[nikhsub1]

That works… until it doesn’t..

LOL. Been making 800% in a few weeks time regularly. But okay...