Anyone else considering not buying?!

[A_Turkey_Sammich]

You'll never own a house at that rate.

Not true, if you’re disciplined enough (esp with saving/investing more so than just staying out of debt) and actually live within your means. I don’t make big money, always adhered to this, bought my current house outright. Normal median home in a good area to mind you, not some tiny fixer upper in a cheap area.

Anyhow still not a peep from dealer since ordering so still pretty sure it never actually got submitted, never mind the hurdle of actually getting produced if it actually is ordered. On account of that I went ahead and bought a new vehicle recently, but if the maverick does show up out of the blue, I’ll most likely still buy that too if the strong demand/prices haven’t cratered. I mean if I could buy the maverick and try it out for a little while then turn around and sell it with nothing lost, why not? Or possibly keep the maverick and sell the current car depending what the money picture looks like and which I like more. I still want one, but with my recent purchase, now I’m banking on the tail end of the model run in a few years or so. Besides having all the inherent little changes from the growing pains, maybe some of the other minor details will be improved as well, like a screen that fits the pod vs that useless cubby for example.

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[Syntax Error]

Not true, if you’re disciplined enough (esp with saving/investing more so than just staying out of debt) and actually live within your means. I don’t make big money, always adhered to this, bought my current house outright. Normal median home in a good area to mind you, not some tiny fixer upper in a cheap area.

Not wanting to derail the conversation too much since it's about interest rates on the Maverick, but I do have to ask - what was the purchase price of your home and when did you buy it?

Because there are tons of places in the U.S. where buying a house with cash outright is outright impossible for people who make less than six figures yearly.

 

[MakinDoForNow]

Same here... Sold my 2015 C2500HD diesel for exactly $100 less than I had paid for it - out the door - when it was brand new. We owned it for 6 years and put about 48,000 miles on it, most of that pulling a large 5th wheel camper. Pretty amazing to drive 48K miles for only 0.2 cents per mile for depreciation!

We put that money in our savings account, to be used to replace my "beater" car... I had bought that car (a 2012 Prius C) in 2014 for $9,500 with unprepared hail damage. At the time it had about 42,000 miles on it. It was a decent car, but really cramped, and my wife found the seating positing extremely uncomfortable for more than 30 minutes at a time. I was happy to get rid of it. I had put close to 80K additional miles (total of ~126,000), and had sat out in a few more thunderstorms. I was pretty shocked when CarMax offered me $8,000 for it, and took it before they came to their senses... So not quite as good as the Chevy truck, but not bad depreciation expense... 80K miles for $1500 comes to roughly 1.9 cents per mile for depreciation...

With the proceeds from those two vehicles in savings, I was able to pay cash for the '22 Maverick Hybrid Lariat First Edition I lucked into. And we still have enough in that "car fund" to pay cash for the second Maverick when the Cyber Orange Maverick Lariat BAP gets here (scheduled for production the week of June 8th, per Ford's order tracker).

We are certainly living in crazy times!

And it's only the square root of the coming crazy! One thing happening is Walmart is building in DFW near i-20 and i-35E two automated distribution centers with a total of $2,230,000 SQ feet. They will have about 1,000 new employees and will be the largest in Walmarts system. Search Walmart and Symbotic to find utube video. The fast self recharging as needed robots used to stock and fetch the racks can travel up to 20mph. Besides building pallets for specific aisles in stores it will also build pallets for specific home delivery trucks or whatever. They gotta get that 1 hour to 2 day home delivery window open.

 

[commadorebob]

Not wanting to derail the conversation too much since it's about interest rates on the Maverick, but I do have to ask - what was the purchase price of your home and when did you buy it?

Because there are tons of places in the U.S. where buying a house with cash outright is outright impossible for people who make less than six figures yearly.

Personally, I'm in a ~2,000 sq. ft. home and I paid roughly $220K five years ago in the second nicest new neighborhood in town. I took a VA loan but I know people who have lived in my neighborhood who paid cash for their home. But I would call this a middle-middle class neighborhood for my state. Slightly over average income, but mostly average expenses.

I have a stupidly low interest rate of 2.625% on my home and every year, I round up my principle paydown payment to make my mortgage equal the next $50 increment. If I don't ever raise it again, I will still pay it off five years early. But I plan to get more aggressive once the teenagers are no longer a financial drain.

But that all plays into the Maverick purchase for me. Ignoring the absent Explorer I purchased that could end up being substituted by the Maverick, I cannot completely overlook the fact my Escape will be paid off in a couple years while my Maverick would be starting the clock over. My wife and I are not car hoppers as we run the wheels off everything and I enjoyed the ten years of not having any car payments.

I plan to purchase my Maverick order but there is a real chance I may end up making the mistake of taking a calculator with me when I go...

 

[Margie's Mavie]

I am so grateful to have gotten a great financing deal when I purchased my XLT in December 2021. Put $20k cash down and financed the remaining $5k with zero interest from Ford Motors. My payment is $165 per month for 48 mo. I'm halfway there!

 

[Syntax Error]

Personally, I'm in a ~2,000 sq. ft. home and I paid roughly $220K five years ago in the second nicest new neighborhood in town. I took a VA loan but I know people who have lived in my neighborhood who paid cash for their home. But I would call this a middle-middle class neighborhood for my state. Slightly over average income, but mostly average expenses.

I have a stupidly low interest rate of 2.625% on my home and every year, I round up my principle paydown payment to make my mortgage equal the next $50 increment. If I don't ever raise it again, I will still pay it off five years early. But I plan to get more aggressive once the teenagers are no longer a financial drain.

But that all plays into the Maverick purchase for me. Ignoring the absent Explorer I purchased that could end up being substituted by the Maverick, I cannot completely overlook the fact my Escape will be paid off in a couple years while my Maverick would be starting the clock over. My wife and I are not car hoppers as we run the wheels off everything and I enjoyed the ten years of not having any car payments.

I plan to purchase my Maverick order but there is a real chance I may end up making the mistake of taking a calculator with me when I go...

I already pay a little more than the monthly on my mortgage, which is also 2.625%, but I live in a high COL area so the principal is much higher than $220K.

But not a bad idea to increase the principal payment every year by a small amount. A little put in over a long period can make a huge difference over the life of the mortgage.

And it's not like the dollar is getting any stronger. If anything, inflation will wipe out a lot of the gains for people saving up cash to make the big purchase. Sometimes it's just worth living in a house during the time it takes you to pay off the mortgage too. It's either that or you're renting, so you might as well start paying down principal instead of paying someone else's mortgage.

 

[MakinDoForNow]

Not wanting to derail the conversation too much since it's about interest rates on the Maverick, but I do have to ask - what was the purchase price of your home and when did you buy it?

Because there are tons of places in the U.S. where buying a house with cash outright is outright impossible for people who make less than six figures yearly.

I am not the guy you asked and I did not buy with cash. Married in 1970 lived with widower grandfather for two years. Had 650/month wife had 160/mo job. Bought owner carry $12,500 fixer house in good neighborhood. Fixed and sold six years later bought $32,700 new house financed on 30 year fixed, sold it 3 years later got all but 2.5 payments back so lived there for about $750 total except utilities but property taxes were in payments so got those back. Started building new houses in good market. If home didn't sell quickly I would move in leaving home on market but could advertise it as builders personal home which at the time would bring about a 3% premium price wise. That was interesting times. Only have owned two homes free and clear in whole life. Current problem is 4100 ft home with 1100 ft garage on 28 acres. Am 80 and tax appraisal was just raised from 871,000 to 1,299,000 property taxes frozen at 488,000 so that's not the problem. My 28 acres I bought for 2,750/acre is now worth 10-12 times that. Problem is income tax if I sell. Aaarrrggghhh!!!

 

[commadorebob]

I already pay a little more than the monthly on my mortgage, which is also 2.625%, but I live in a high COL area so the principal is much higher than $220K.

But not a bad idea to increase the principal payment every year by a small amount. A little put in over a long period can make a huge difference over the life of the mortgage.

And it's not like the dollar is getting any stronger. If anything, inflation will wipe out a lot of the gains for people saving up cash to make the big purchase. Sometimes it's just worth living in a house during the time it takes you to pay off the mortgage too. It's either that or you're renting, so you might as well start paying down principal instead of paying someone else's mortgage.

A house is a good inflationary hedge if you bought the right one at the right time. That's how I'm looking at it. The bank is almost losing money on my mortgage but I've made it clear to them I'm never touching it again other than to pay it down.

 

[Skyline]

My 28 acres I bought for 2,750/acre is now worth 10-12 times that. Problem is income tax if I sell. Aaarrrggghhh!!!

There are number of financial solutions that get around paying taxes. One such a solution is reverse mortgage, where basically the buyers pays you the monthly payment instead of you. The link pretty much explains the pros and cons of such a mortgage. Obviously it depends on your circumstances, if this is suitable for you with kids, grandkids, other relatives, girlfriend, etc. I am in similar shoes, but rather leave my properties to my kids and grand kids....

 

[Nugget]

Ford is screwing Maverick buyers. They can't deliver and they don't wish to give us any incentives at all! Not too mention price hikes! 5% ain't bad but it ain't good either, considering prior years rates. I got 2.99% for 7 years awhile back on a 2022 Honda Civic. Ford could really car less about us! I just received another 'dear' Maverick owner letter regarding supply issues!. Baloney! When I call Ford Marketing I am told I am good too go? No Schedule date? Absolutely the worst in customer service. I forgot too mention, my dealer is clueless and useless!

I used to buy eggs for $1 dozen.

 

[TKranbuhl]

It was kind of a joke where I worked when guys talked about buying new tires, I always said it's been 20 years since I've bought tires 'cause I trade up to a new car or truck every 1-2 years. It wasn't always that way with 3 kids and house payments, but it's nice when you finally get there.

 

[CTYankee]

You've "never had a car payment before," so why the sudden "need" to finance one now?

Most of us never had a car payment until we bought our first nice car, new or used. The first car payment I ever had was when I bought my first new car, a 1979 Pinto, while in my late 20's.

Other than that, I agree with the rest of your post while understanding that some of us didn't get much financial education until we learned it the hard way.

 

[TheSEARCH]

Wow this topic went off the rails. About people who pay cash for everything even houses. . lol. If price goes up to much I wont buy. How much?, another 2 k and i am out. There are better choices for me then. Not a pick up but oh well.

 

[MakinDoForNow]

There are number of financial solutions that get around paying taxes. One such a solution is reverse mortgage, where basically the buyers pays you the monthly payment instead of you. The link pretty much explains the pros and cons of such a mortgage. Obviously it depends on your circumstances, if this is suitable for you with kids, grandkids, other relatives, girlfriend, etc. I am in similar shoes, but rather leave my properties to my kids and grand kids....

Reverse mortgage requires it remains your residence. If I decide to move to a different place I will get my CPA involved for sure. The taxes I was referring to was personal property taxes. It would be difficult to keep the 62% deduction in property tax (this year depending tax appraisal it could go up or down each year). If I bought a new property it would have to be in Texas and any improvements I did after purchase that increased value would be taxed at full value. The percentage of the reduction is what is carried over to the tax appraisal at time of purchase of the new property not the amount of dollars paid. Dollar wise it would be expensive if I bought a new 28 acres and then built my new house on it. Thanks for the hint though.

 

[reneau]

Shop around. Might be able to do a little better. Start saving $ now to help with down payment. With a June build date you aren't getting the truck until July-August. Every 1k put down will lower the payment ~$20/month.

At the end of the day if you can't really afford it or it would make life tough then it isn't worth it. We've worked really hard to be able to pay cash for vehicles and then we hold on to them while saving for an eventual replacement. The Maverick will likely change that unless we have to reorder for 2024. We bought one for our son and I liked it enough to convert his hybrid order into an EB for me. Goal will be to only pay interest for 6 months or so.

Soap box:
Can't stress enough how much better life is without large amounts of debt. We have our house and even that is getting paid off quickly. We don't fully subscribe to the Dave Ramsey method but we follow most principles that he has laid out. Buy a good vehicle. Pay it off before you do mods. Hold on to it for as long as you can while setting that payment money aside to save for a future vehicle or pay off other debts. It's life changing.

Yep.....better to not pay any more interest than you have to. Save a little every month and make a large down payment and that will help a lot. Learned about interest a long time ago. The rate for good credit was 18 1/2 % (yes you read that right) when we first started out. Try to finance a home at that rate!

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