Maverick is now 8.99% from Ford. wtf

[RobbieAG]

My truck was built 12/16/23 and is supposed to arrive between 1/10 and 1/16/24. No way I'll be paying 8.99% on a loan.

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[huunvubu]

If you really had so much money, you'd pay cash and ZERO interest....Just like I did. Dream on, gramps.

Uh what are you babbling about !!!

On my 2022 Maverick I had cash the to pay for it in full but with 0% for 36 months I took Fords money and paid 0% and kept the cash in a Citi High Yield Money Market Fund earning interest.

When my 2023 Maverick came in I paid off the remaining 0% loan in full with cash. I needed the title to sell the 2022 to Carvana. Sold the 2022 for $31,404 to Carvana which is $5,336 over my total out-the-door price of $26,068.

Used the cash from the sale of the 2022 to fully pay for the 2023 and still had an extra $3,000 in cash from the difference.

So yes I did pay cash and ZERO interest.

 

[Random]

Yeah I was mad when it went from 0% to 2% a week before delivery.

 

[ReggieBee]

Not "outrageously high to me" as I am earning 5.19% on my Swabb T-Bill fund.
Financial institutions are going to add onto that rate based on length of loan and credit history.

Here were rates from the past:

Rates in the 1970's were consistently above 10% hitting a peak of 11.57% in November 1974

Rates in the 1980's were consistently above 10% hitting a peak of 17.36% by November 1981

Rates in the 1990's 9.78% in May 1995, For the rest of the decade, auto loan rates hung between 8.31% and 9.44%

Rates in the 2000's ranged from 9.64% in November 2000 to 6.43% by May 2004

Inflation is coming down and rates could decline by a percent in 2024.

When/If Inflation gets to the 2% goal auto loan rates should be back in the 4-6% range which was very normal in the 2010's.



For those who are shocked by current auto loan rates here is historical rates since 1972

So now do this chart for Canada. Which is the regional forum where this thread is located, eh! cheers!

Seriously tho, would there be a way for the powers-that-be to mark a regional thread 'Canada' inside the thread somehow? I see these threads going off the rails all the time because there is no easy way to see that it's actually a regional thread. So when the OP posts 8.99%, you don't have to scroll very far before guys are replying as though that's a US rate. And it shouldn't be up to the OP to state Canada, he's putting it in the right forum to begin with. And it's not the fault of those replying either. This is especially fun on threads where dollars are involved.

Anyway, another example: the 17.36% peak 80's US rate quoted above was more than 21% in Canada (www.teamchrysler.ca has a historical rate) during that same period. Yikes!

 

[Montana]

That sounds awful. I wouldn't be buying vehicles right now, regardless of the location, if I was not paying all cash or "playing the system" for essentially 0%. Not optimal for most people though, and that's sad. Way to many people forced to look at things check to check now days.

What is the average loan length up there in Canada? 72 months? They are offering 84 months down here now. That alone is crazy. I was always skeptical about doing 60 months!

 

[Mc_Flier]

Zero % and price protection, thanks to @fordvideoguy

 

[TheRealYankeeClipper]

I had a long night negotiating with the dealer when I picked up my 2024 up last week. Ended up talking them down to a 0% interest rate with a monthly payment of $0 over the life of the truck after trade in and down payment.

 

[Chicolini]

So now do this chart for Canada. Which is the regional forum where this thread is located, eh! cheers!

This thread is located a in number of places, including the "Latest Posts" forum, which is where I saw it. But thank you for sharing the high interest rates that our northern neighbors have to pay. Just another example of why it sux to be you, eh?

I live near a major highway that the Canadian snowbirds use for their annual migration to/from Florida. I almost always wave cheerfully and give them a thumbs up. Keep bringing us those Loonies, eh?

I do miss Doug & Bob MacKensie....

 

[ReggieBee]

This thread is located a in number of places, including the "Latest Posts" forum....

Exactly, thank you! That's what I was trying to get at in my post after my joke you quoted. The problem is that depending where you see it, it doesn't give any context that the thread is in the Canada regional forum. The OP isn't usually going to specify "Canada" in their post because they would assume it's implied since they posted in the Canada forum. This lack of context is why many in this thread understandably assume the 8.99% the OP quoted is a US rate. There was a similar issue in an oil change cost thread in the Canadian forum where the OP quoted what he paid in CAD. But users assumed it was USD so they were telling him how badly he got ripped off. Not their fault, you have to do some work to even notice that it's a Canadian forum post. On PC, you have to scroll way up above the thread title and an ad space to see it:

It's good the site provides a Canada forum. But I just wish they had a way to make it more clear to users which one you're posting in is all.

I do miss Doug & Bob MacKensie....

They actually got back together this year to do a radio ad protesting a beer tax hike up here!

 

[KrisYYC]

That sounds awful. I wouldn't be buying vehicles right now, regardless of the location, if I was not paying all cash or "playing the system" for essentially 0%. Not optimal for most people though, and that's sad. Way to many people forced to look at things check to check now days.

What is the average loan length up there in Canada? 72 months? They are offering 84 months down here now. That alone is crazy. I was always skeptical about doing 60 months!

We have 84 month terms up here too, depending on the manufacturer. Indeed it is crazy. I think Hyundai and Kia even do 96 month terms up here lol. Buying a car based on the monthly payment is bad enough, but if you have to go to 96 month term even to make a monthly payment on a Hyundai you should probably buy a used beater instead.

 

[KrisYYC]

I meant to post this in this thread, ended up posting it in the historical interest rate thread by mistake.

Here is an easy to use calculator that shows the total cost of interest on a car loan. Not just the monthly payment. This is what most people SHOULD be looking at when considering financing a vehicle instead of just the monthly payment.

https://www.investopedia.com/car-loan-calculator-5084761

Buying a brand new car you're already taking a depreciation hit. Buying brand new AND financing it with interest and you're totally taking a bath financially. I can stomach the depreciation hit because I'll keep it for 10-15 years. I will never, ever pay interest on a vehicle.

I'm zealous about this so don't try to convince me otherwise. Paying interest on a vehicle is probably one of the worst financial things you can do.

 

[Stevan31]

Do you have the paperwork when you ordered it? What was the interest rate then? My dealer honoured my price protection including the interest rate when I picked it up...

How‘d you get that?
Mine just finally did the 24 roller over now, and made a new build sheet with basically just the ford.ca new price (3000 up for the hybrid option) with the current rate. I had 4.49 back in october 22. no price protection, no locked rate. Is that even fair? Anything i can do about it?

 

[r8drskullz]

I was curious about this. I have one expected in march. I suspect that ecoboost mavericks will see a promotional rate by late summer when the dealer lots start to be well stocked. Unlikely for hybrids.

Yea that’s high and it’s everywhere! I was lucky to get the Ford Promo 2.5% last year in October when I got my 2022 XLT.

 

[Bigred]

I don’t finance but looking at bankrate.com, there’s some 4.49% auto financing available. Likely depends on your credit score

 

[Grim_Skunk]

How‘d you get that?
Mine just finally did the 24 roller over now, and made a new build sheet with basically just the ford.ca new price (3000 up for the hybrid option) with the current rate. I had 4.49 back in october 22. no price protection, no locked rate. Is that even fair? Anything i can do about it?

I actually didn't do anything... At the time of my order, my salesman and I signed a price protection form. He gave me a copy of the form. During pickup they honoured the agreed interest rate.

I'd asked your dealer about that form...

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