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

[jsus]

I have worked in the lending industry for over a decade. Nobody doesn't just chose to not pay their bills. A lot of people used their homes as ATM machines and then the economy crashed and suddenly they were upside down in their home and couldn't afford the payment. Another pandemic could hit and the principal bread winner dies and suddenly the house payment is unaffordable.

And that's why a lot of people prefer to stay away from any debt altogether. It's so easy to get yourself leveraged into a place where you can make the payments just fine, until some crisis pops up. They always do, that's life.

Dealerships do not lend for nothing unless the USA is different. You are still going to pay interest after the 0% is done. Usually on the full amount. Fine print is a kicker. Be careful.

Dealerships, other than buy-here-pay-here scam-like lots, do not lend. They work with the lenders who do, such as the manufacturer's captive lending arm (e.g. Ford Credit), as well as banks and credit unions.

Promotional interest rates on cars aren't like credit cards and other loans where, they try to trick you into something. Essentially, the manufacturer is paying the interest as an incentive to get you to buy the car, in lieu of offering a (or a larger) rebate. The 0% rate lasts the duration of the loan barring any provisions around missing payments (but I don't recall auto loans doing that).

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[PNWMaverick]

Who is that dumb not to pay for the HELOC? Using the HELOC works for my wife and I the way we have it setup.

Tell that to the spouse who's loved one is killed in an accident and suddenly has to make a truck payment or lose the house.

There are countless reasons why it could happen.

Dealerships do not lend for nothing unless the USA is different. You are still going to pay interest after the 0% is done. Usually on the full amount. Fine print is a kicker. Be careful.

You have a very skewed and incorrect understanding of how money/financing works.

A 0% interest rate, fixed term, loan has....0% interest. Which is entirely different than 0% 'if paid in X months' offer, which accrues interest, and if you haven't paid in full by X month you have the accrued interest applied to the balance.

If you want to talk about Canadian vs United States lending laws, go for it. Canada has far greater consumer protection laws and lending practices. Common loans that are completely legal here in the USA are illegal in Canada because of how predatory they are.

I digress.

Even if the HELOC had a 0% interest rate and your auto loan had a 5% interest rate.....you are still putting your home up as collateral for an auto by going with the HELOC. You are using an asset to offset a liability. If it works for you, great, but know your risks. Don't act like the risks that are there do not exist.

 

[Eagle11]

My 8/3 ordered OW XLT Hybrid Lux Mooned Maverick should be arriving to my dealer soon. I'm interested in opinions as to weather to pay cash or have 3 years of higher monthly payments at 0% interest of say five to six hundred per month. At those monthly payments I'll need to layout only 10k or so at time of sale. I'm thinking that IF my vehicle turns into a lemon I wouldn't have laid out too big a chunk for it. What do ya think?

First question, how did you get your truck ahead of hundreds of other people who ordered at least 2 months before you?

Second, if a company is willing to give you FREE money, take the FREE money.

BTW, if it's a lemon and the manufacturer will purchase it back, then you and the manufacturer will work this out.

 

[DryHeat]

Dealerships do not lend for nothing unless the USA is different. You are still going to pay interest after the 0% is done. Usually on the full amount. Fine print is a kicker. Be careful.

First, the dealership doesn't lend the money -- Ford Motor Credit does.

Second, the 0% is for the term of the loan. Make 36 payments, you're done. There is no "after the 0% is done."

You seem to be thinking that a fixed-term automobile loan is like a "0% for the first 6 months" credit card offer. Or a line of credit where the interest rate can be periodically adjusted. It's not.

 

[DryHeat]

Canada is my home. My wife has Crohn's and I've almost lost her twice. Crohn's has also taken a unborn child away from us. I have hypertrophic cardiomyopathy and at high risk of sudden death syndrome. Don't you dare go talking to me about life and telling me I don't know how to manage my finances. You do not know me or my family. So quit now and Move along please.

First, I'm sorry for the health issues that have hurt you and your family. And I have no intention of talking to you about life.

The comments here have been in response to assertions you made about how to manage finances, like:

• It's better to have the lien on your house than on your car.
• The interest rate on your HELOC is lower than the 0% offered by Ford.
• If I borrow at 0% I will still end up paying interest, usually on the full amount.

You are free to defend those claims if you like. But you can't reasonably make those claims and then turn around and say, "Don't dare talk to me about how to manage finances." It's a conversation, not a monologue.

 

[mikedege]

0 down 36 month 0% loan for me. Not sure how anyone who can get this deal would not take it every time. imo.

Mike

 

[2022EOW]

I financed the total cost of my Hybrid Lariat Lux for three years at 0%. Best option if you can. You don't get to use other peoples money for free all that often.

 

[RustyF150]

First question, how did you get your truck ahead of hundreds of other people who ordered at least 2 months before you?

Second, if a company is willing to give you FREE money, take the FREE money.

BTW, if it's a lemon and the manufacturer will purchase it back, then you and the manufacturer will work this out.

I put my reservation in on 7/21 and the order officially went in on 8/3. At that time my dealer said it would be in probably around a Thanksgiving delivery. If I'd know it would take this long I would have opted for the Lariat. I saved a bunch of money in these 7 months. Anyway, 7 months is too long a wait.

 

[Vols44]

Saving money to make the 36 payments at 0% is a sound strategy while others pay back interest on longer loans.

The June 2020 Bronco orders will be able to pay cash for their Everglades trims if/when they arrive sometime this year.

 

[DryHeat]

We are still paying for our house so it has a lien anyways that's the reason point A doesn't matter to us. Plus I never said it was better to have a lien on the house then a car Please don't assume or put words in my mouth.
* * *
0% will be beneficial to those than can afford the payments and quality for the loan. Being on long term disability, I do not qualify for loans like the normal person would. We are utilizing the HELOC in order to take out our own loan on the equity we have in our house.

I didn't mean to put words in your mouth. I based that on your statement that you were using a HELOC (making the car purchase cost a lien on your house) because "then there is no lien." You also said, "it's better to have the vehicle free and clear." That sounded like you preferred to have the car cost as a lien on your house rather than as a lien on your car. But if I misunderstood, I apologize.

We seem to agree that the 0% loan is a good deal for those that can qualify and pay for it. In your specific situation, use of a HELOC also makes sense.

 

[PNWMaverick]

Canada is my home. My wife has Crohn's and I've almost lost her twice. Crohn's has also taken a unborn child away from us. I have hypertrophic cardiomyopathy and at high risk of sudden death syndrome. Don't you dare go talking to me about life and telling me I don't know how to manage my finances. You do not know me or my family. So quit now and Move along please.

You need to calm down. No one is telling you how to run your life.

I am telling you how basic auto finance, and finance in general, works. As you clearly do not have a solid understanding of it. Further, you made a comment about other's ability to pay, without giving any considerations as to why they wouldn't. We gave you a few options as to why a person wouldn't be able to make a mortgage payment. Why a HELOC for an auto is bad.

You flipped out.

Oh, and about, "My wife.....", which has NOTHING to do with your incorrect financial statements......

• I too have Crohn's from Hell. It has nearly killed me.
• My wife has almost died, two weeks in ICU, more than once, from her Lupus.
• My father put a gun to his head in front of the family, leaving my mother with a home and bills she couldn't pay.

If you want to sit here and preach, no one is listening to you. It has nothing to do with the fact it is never a good idea to use a liability to offset an asset!

You made objectively incorrect financial statements about products. When people pointed out those facts about a product, you lost your cool.

Edit:

My wife has her degree in Finance. She eats, sleeps, and breaths these things. When her Lupus isn't trying to kill her.

Get the Hell off your high horse.

Edit 2:

Funny enough, I have dual citizenship with the USA and Canada. So I have a really solid idea on how things work for my family in Canada, especially as medical is concerned. Talking about losing the ability to make a home payment, here in the USA....come here and get sick once. I was billed $10,000 for 2 MRIs.

It is incredibly easy for a person, especially here in the USA, to find themselves in the position you so quickly discarded.

 

[Eagle11]

I put my reservation in on 7/21 and the order officially went in on 8/3. At that time my dealer said it would be in probably around a Thanksgiving delivery. If I'd know it would take this long I would have opted for the Lariat. I saved a bunch of money in these 7 months. Anyway, 7 months is too long a wait.

Doesn't matter when you put your reservation in, Ford didn't see the order until 8-3, that is your order date.

Now, you aren't the only one who has been affected by this, but I knew when I ordered mine in early July, that Xmas was going to be the soonest I'd see my Maverick (because of the is forum) I get mine next week. As I said, there are people who placed orders in June (with a confirmation email from Ford) that haven't received their maverick.

 

[stoptothink]

Doesn't matter when you put your reservation in, Ford didn't see the order until 8-3, that is your order date.

Now, you aren't the only one who has been affected by this, but I knew when I ordered mine in early July, that Xmas was going to be the soonest I'd see my Maverick (because of the is forum) I get mine next week. As I said, there are people who placed orders in June (with a confirmation email from Ford) that haven't received their maverick.

Ordered and confirmed June 24th. The dealer estimated Thanksgiving, then I got on this board and realized that was a pipe dream. We're finally scheduled for build March 21st, so we're looking at early May if everything goes right.

 

[BootXL76]

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.

My dealer would only take 5k on a CC

 

[Eagle11]

Ordered and confirmed June 24th. The dealer estimated Thanksgiving, then I got on this board and realized that was a pipe dream. We're finally scheduled for build March 21st, so we're looking at early May if everything goes right.

Dealers will tell you what you want to hear, mine said Thanksgiving too, I laughed, I was right thanks to this forum.

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