Buy outright or max out the 3 year, 0% from Ford?

[samspritzer]

Im in the same position. You have to have them pull the “smart Vincent” to get 0 percent. Any price increases and current promotions will not be applicable if we go with the 0 percent from when we ordered it.

Im going with 0 percent and putting $25k in a separate brokerage account under tickers SPY and QQQ. I will have $600 sold monthly and pay the car automatically. Markets have been falling and I predict a little bit more downside. Might put the money in before the truck gets here.

Enlighten me but what is "smart Vincent"?

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[Rob Cactus Gray]

Enlighten me but what is "smart Vincent"?

here you go. 5:27 into the video

 

[bgn]

I put 10k down and financing the rest for 36 months 0%.

 

[bgn]

We're in a similar situation. I'm going to see how much they'll allow me to put on a CC ($30k limit, 2% cash back, 0% APR until January 2023) and then finance the rest for 3yrs. If, by total miracle, they allow me to put the entire thing on the card, we'll probably go with that and just pay it off next January.

Unlikely they'll let you do more than a couple thousand, if that. Credit card fees are 2-3% for them.

 

[Shakesbear]

Always take free debt. Keep your liquidity. If something happens and you need that money for something else, refinance.

Always take the free money

 

[ValenciaOrange]

I was going to pay in full, but decided on the 3 year 0 percent financing. I set up payments so Ford will be paid for 36 months automatically.

 

[Chris_G]

I was going to pay in full, but decided on the 3 year 0 percent financing. I set up payments so Ford will be paid for 36 months automatically.

Me too!

 

[Falcon first]

Get a gov’t i bond which pays 7.12%, limit is $10,000 per year but if your married $10,000 per person. Got $20,000 late last year and $20,000 already this year. I’m going with 3 year finance and 0%, worst case is .9% for 3 years.

 

[stoptothink]

Unlikely they'll let you do more than a couple thousand, if that. Credit card fees are 2-3% for them.

This will be the 3rd time I'm buying a vehicle attempting to put a significant amount on a (0% APR) CC, the first two times they allowed $3k and $10k. No prior experience with this particular dealership, so we'll see.

 

[MakinDoForNow]

We're in a similar situation. I'm going to see how much they'll allow me to put on a CC ($30k limit, 2% cash back, 0% APR until January 2023) and then finance the rest for 3yrs. If, by total miracle, they allow me to put the entire thing on the card, we'll probably go with that and just pay it off next January.

Not sure but I think someone posted that they were limited to $3,000 on card. Probably dealer limitation.

 

[Rob Cactus Gray]

I'm using a HELOC to pay for it in full. Then I can pay as little or as much whenever I want. Then there is no lien.

Im not following. There Is absolutely a lien, the collateral is just your house instead of the Maverick.

 

[jsus]

Im not following. There Is absolutely a lien, the collateral is just your house instead of the Maverick.

No lien on the vehicle, but the HELOC is a line of credit on the house, so there's a lien there.

 

[vabchusa]

I ALWAYS use the 0% interest option. I did it with my workshop and on my Cmax and put the money in a CD, in the end I paid off the loan and still have the CDs. Use someone elses money always, that's how the rich folks do it.

 

[atomguy245]

If you know how to make your cash grow, take the 0% for as long a term as they offer.

 

[PNWMaverick]

I'm using a HELOC to pay for it in full. Then I can pay as little or as much whenever I want. Then there is no lien.

There is a lean, it is just on your house instead of the truck. Don't make the payments on the 'truck'? You lose the house instead of the truck.

A Home Equity Line of Credit uses the equity in your home as the collateral for the loan. Where as an auto loan uses the vehicle as collateral.

Im not following. There Is absolutely a lien, the collateral is just your house instead of the Maverick.

This.

True. If you are still paying for the house anyways, it's better to have the vehicle free and clear and pay for it at your own convenience. Win win.

Sorry, but no, that isn't how this works, at all. If you own the home outright the moment you take a loan against it via a HELOC you no longer own that home outright. You have a mortgage on that property. A lean. It is far better to have a home owned outright, without any leans, and have the leans on the vehicle. In no world is it better to have a lean on the home and no lean on the vehicle if those are the choices being presented.

Using a Second Mortgage, HELOC, or any form of equity loan of a home, to pay for a vehicle is a terrible decision financially. You are now risking an appreciating asset for a depreciating liability. Almost always doing it at a higher interest rate over what an automotive loan would offer. For a longer period of time, potentially without defined term limits (see revolving lines of credits via HELOC) than a fixed term automotive loan.

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