How are you paying for Maverick?

[Utjazz]

My MY22 Ford Maverick XLT Hybrid that I currently own cost $26,068.21 out the door in 12/13/2021

I sold the 2015 Honda Fit Ex that I owned to Carvana for $16,523 to partially pay for the Maverick.

Since I was getting 0% financing from Ford for 36 months I only put down $8068.21 and financed the remaining $18,000 at 0% interest with 36 monthly payments of $500

I have already made 18 payments so the balance owed is currently only $9,000

The profit of $8,455 from selling the Fit (minus the $8,068 down payment) was placed into a Money Market account that at the time was earning 0.5%. That MM account is now earning 4.05%.

Also at the time of financing the Maverick I had cash in hand to pay it in full but with the 0% finance offer the $18,000 was kept in the same MM account.

The money put into the MM account totals $26,445 (8,455 from selling the Fit and $18,000 financed at 0%) currently earns $89.29 in monthly interest.

I have a MY23 Maverick Order that is currently unscheduled and am placing a MY24 order that will get a private offer if the MY23 doesn't get scheduled.

I plan to pay for the MY23/MY24 order in full by selling my MY22 Maverick to Carvana, Vroom, Carmax or others and still pocket a sizeable profit in doing so.

Current Carvana offer as of 7/1/2023 is $31,146 and my MY22 Maverick only cost me $26,068.21 out the door. Current profit is $5,078.

And the total out-the-door cost for my MY23 Ford Maverick Hybrid is $28,590.60 so I will pay for my new Maverick in full from the Carvana payment while pocketing and additional $2,555.40 in cash

I believe that the higher sticker price on the MY24 Maverick Hybrid and the current unobtainablity of Maverick Hybrids in general will support the high resale value of used Maverick Hybrids for some time to come.

Nice! Thanks for sharing your story. Smart use of $ and interest!

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[elmo3000]

I got D-Plan for working at the dealership, put $10,000 in trade equity down and then financed the rest at 5.25% (Best APR available in the area at the time). Financed just a little under $21,000 with the premium warranty, so regardless of the rate, it wouldn't make that much of a difference on this size payment.

 

[FriscoTXJoe]

Thanks for the good advice. I do have more than one retirement account, l plus a pension when I do retire. So what I’ll do, is take the $ out, and then I’ll be making payments to myself in a savings account getting at the moment over 4% interest. I know it’s not a perfect plan, but if I were to save money and pay cash, we’re talking years… and as I said, don’t want to be committed for several years at over $400 monthly…l

We all do our own thing and I totally support freedom of choice ......I just wonder how people live beholden to credit. Doesn't sound like you will be doing that. Congratulations, it's a great truck.

 

[TheQuixotic1]

I had the cash but back when I ordered, the economy was under different management and we had low (read Zero) interest rates so I gave em a third, let the rest sit in my bank and as it turns out, with current management of the economy, Ford is losing over 10% of the value of their money sitting in my bank account!

All that said, if you can't afford half the cost as a down payment and aren't paying it off really quickly, you are doing that foolish debt death spiral that so many folks fall in to.

And why are you buying new if you can't afford it?

Not chastising, just suggesting a better way to manage money.

The Fed is still ran by the same people: "Meet the new boss, same as the old boss."

That being said, there are financial lines of thought that, if you're interest rate is better than 5.5%, financing makes more sense than buying in cash or financing with a large down payment because of the average return your cash can get being invested (~8%) vs the finance rate + average depreciative asset rate of a vehicle over several years. That is also dependent upon actually investing that money instead of spending it on something else.

It is A LOT of economic and mathematical magic that I claim minimal expertise on, but it at least sounds like it makes sense to me to some degree.

 

[skadizzle]

My MY22 Ford Maverick XLT Hybrid that I currently own cost $26,068.21 out the door in 12/13/2021

I sold the 2015 Honda Fit Ex that I owned to Carvana for $16,523 to partially pay for the Maverick.

Since I was getting 0% financing from Ford for 36 months I only put down $8068.21 and financed the remaining $18,000 at 0% interest with 36 monthly payments of $500

I have already made 18 payments so the balance owed is currently only $9,000

The profit of $8,455 from selling the Fit (minus the $8,068 down payment) was placed into a Money Market account that at the time was earning 0.5%. That MM account is now earning 4.05%.

Also at the time of financing the Maverick I had cash in hand to pay it in full but with the 0% finance offer the $18,000 was kept in the same MM account.

The money put into the MM account totals $26,445 (8,455 from selling the Fit and $18,000 financed at 0%) currently earns $89.29 in monthly interest.

I have a MY23 Maverick Order that is currently unscheduled and am placing a MY24 order that will get a private offer if the MY23 doesn't get scheduled.

I plan to pay for the MY23/MY24 order in full by selling my MY22 Maverick to Carvana, Vroom, Carmax or others and still pocket a sizeable profit in doing so.

Current Carvana offer as of 7/1/2023 is $31,146 and my MY22 Maverick only cost me $26,068.21 out the door. Current profit is $5,078.

And the total out-the-door cost for my MY23 Ford Maverick Hybrid is $28,590.60 so I will pay for my new Maverick in full from the Carvana payment while pocketing and additional $2,555.40 in cash

I believe that the higher sticker price on the MY24 Maverick Hybrid and the current unobtainablity of Maverick Hybrids in general will support the high resale value of used Maverick Hybrids for some time to come.

I tried putting I am in another state when I get quoted from Carvana/Vroom but I wonder if they go by where its registered for the offer. I'm in Fl and my 2023 Lariat Lux hybrid with 5,000 miles on it with a sticker of $37k only was offered $32,000 on Vroom. Carvana just sent me an email saying they are now offering $28k. I still don't get how people are getting ridiculous offers still. I even tried saying I am in PA yesterday and was only offered $31k.

 

[Bushpilot]

At 60 years old, I have never had a car payment, and wasn't going to change that with the Maverick.

I wrote a check.

 

[Old Man]

Cash, from my $10/week savings account I started 65 years ago when I was a paper boy because I knew when I was old I would want a Maverick.

 

[realshelby]

Thinking my 2017 Jeep Wrangler Recon will be worth as much or more than the Lariat Maverick. Write a check if not.....

 

[jdubblax]

My maverick is currently in production and I plan to trade in my Ford Fusion and rest will be cash to get the payment in the 200s. My dealership told me to reach when it ships to start the financing process. I am ready for them to give me top dollar for my fusion to help pay for the maverick.

My dealership did tell me no incentives for the Maverick which is a shame Ford.

 

[Grumpa]

My maverick is currently in production and I plan to trade in my Ford Fusion and rest will be cash to get the payment in the 200s. My dealership told me to reach when it ships to start the financing process. I am ready for them to give me top dollar for my fusion to help pay for the maverick.

My dealership did tell me no incentives for the Maverick which is a shame Ford.

Shop around for interest rates. Many credit unions will have better rates than Ford?
I can a loan with Navy Federal less than 5% for 60 months. By shopping around you may have some leverage with Ford financing. Dealers get rebates from Ford when you finance through them as well as other finance outfits.

 

[jdubblax]

Shop around for interest rates. Many credit unions will have better rates than Ford?
I can a loan with Navy Federal less than 5% for 60 months. By shopping around you may have some leverage with Ford financing. Dealers get rebates from Ford when you finance through them as well as other finance outfits.

I'll check that out, I know my bank is doing a 6.25% for 60 months. To make things more interesting is my Maverick is being discounted thanks to my wife's grandpa retiree Z plan.

 

[bgn]

10k down, ~29k financed at 0% for 36 months. Thanks for the free money, Ford. Got lucky that rates weren't 5-7% when I bought it in Dec 2021.

 

[tom_tucker]

Thanks for the advice. Yes, I’d rather not withdraw the funds. It’s new to me to withdraw and I don’t like doing it. Yes they took taxes out, but at least they took it out at the time l they take 20%, which is higher than the tax bracket I’m in, so some will be coming back to me when I file next spring. I just don’t want to be paying $400 at least for several years. I also have more of a main retirement account,so this is extra….so I don’t feel too bad this time I’m taking it out.

I have a 28k loan and a 28k bond ETF. The interest on the loan is the same as the bond is paying out in dividend income. Soon, the bond fund will pay out more than the monthly interest. I'm on the Ramsey bandwagon in principal, but I can't justify selling the bond fund to pay off the loan.

Ramsey would point out that I'm not factoring in the "risk" of the bond fund vs. the loan's guaranteed savings. I'm also not counting the taxes I'll pay on the monthly dividends. The deciding factor is that once a car is paid off, it's almost impossible to get a loan on it.

Check out a good Credit Union and see if you can get something around 5%. You can always pay off a car loan, but you can't get the money back like a home cash-out re-fi.

 

[Ozarkbeard]

Walked in ready to write a check. Dealer found us another $500 for financing, so we financed then paid it off before the first payment was due.

This is the way.

I will have my checkbook, but always ask about financing deals. I never tell them anything about payment plans until the bitter end, to see if they have have a discount for financing. If they ask early on, I just give them the "haven't decided yet" answer. If they persist, I tell them it's irrelevant until I decide to actually make a purchase. Same with "trade-in" questions. And I print a couple quotes from CARVANA or similar places to take with me and decide whether to trade in or sell my current vehicle elsewhere.

 

[huunvubu]

At 60 years old, I have never had a car payment, and wasn't going to change that with the Maverick.

I wrote a check.

Our last car payment was in 1997. Since then I have fully paid in cash for my 1998 Ford Ranger XLT SuperCab, wife's 2009 Honda CR-V Ex and my 2015 Honda Fit Ex.

I was 66 at time of my Maverick purchase and had cash in hand to again pay in full but with Ford offering me free money for 36 months at 0% it was a no brainer to go for that.

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