Minimum amount to finance?

[atomguy245]

Just wondering, I might have just realized how cheap I am . A $500 a month payment is not very high these days? I pay $380 on my current car and I feel is too much... I mean for $500 a month I could buy a mid/full size truck right? take into consideration that I don't use my car for work, it's just a family car.

You aren't cheap. I also see these large (large to me) numbers and think they are crazy. My last car payment was about $250, and I just paid that off last year. Really al that matters is the total amount you pay back in the end. But it's hard to get out of that payment amount mindset.

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[Lyle]

i agree 100% we paid all cash for our 2020 escape hybrid AWD. The finance guy was really trying. But I, like yourself, enjoy the mindset of not having auto debt. Keeps debt, inquiries, lowering avg. credit age, etc. off my credit report, too. Also, insurance is lower. I think people who can’t pay cash are usually the ones who rush to the “why pay cash, you can grow it faster by investing it just say that as a herd mentality thought.

0% speaks for itself, there are safe investments to park your money in to beat bank savings account interest of .05%, and use the 0% or the .9% interest money to get the truck.

 

[Maverickman74]

Pay half, then give me the other half at 1% as a loan, then you get zero percent plus $1500 for your trouble and I get 0.5% effectively. I live on an island with high wages and am not going anywhere. Should be a win win. Plus I will throw in some coconuts to sweeten the deal.

 

[Mavforever]

Question: Where are you folks finding Ford 0% financing? Entering my zip code on the Ford website/Pricing and Incentives, the finance rate is 5.9%. I too was intending to do an all cash deal, but as the previous poster mentioned it's "free money" at 0%.

Ford is offering 0% for 36 months on the Maverick…I just took delivery Wednesday and I took .9% for 48 months instead to get a lower payment…total interest over four years is still only $305 since I only financed 18k

 

[huunvubu]

i agree 100% we paid all cash for our 2020 escape hybrid AWD. The finance guy was really trying. But I, like yourself, enjoy the mindset of not having auto debt. Keeps debt, inquiries, lowering avg. credit age, etc. off my credit report, too. Also, insurance is lower.

Why do you think insurance is lower if you do not have a loan?

I know having a loan requires that you have insurance but I have not heard that it increases your insurance premium.

I already have full coverage on our vehicles well above the state required minimums so it appears that having a loan will not affect my premium.

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How Having An Auto Loan Affects Your Insurance Rates

https://www.moneyunder30.com/how-having-an-auto-loan-affects-your-insurance-rates

Having an auto loan means you might be required to buy more insurance than the required state minimums---and that's not really a bad thing.

Will your auto insurance premium rise if you have an auto loan? At the risk of sounding ambiguous, the answer is sometimes!

Strictly speaking, there is no additional cost for auto insurance if you have a loan on a car—as long as the coverage is the same in both cases. But that won’t always be true, and that’s why your auto insurance may be higher if you have a car loan.

That’s because lenders require certain types of insurance coverage that often exceed the minimum coverage required by the state.

For example, while just about every state has a minimum legal requirement for liability coverage, they typically do not require other types coverage, such as collision and comprehensive. If you have a loan on your car, the lender will require that those coverages be added to your policy. And that can cause your auto insurance premiums to be considerably higher.

 

[huunvubu]

0% speaks for itself, there are safe investments to park your money in to beat bank savings account interest of .05%, and use the 0% or the .9% interest money to get the truck.

I am getting 0.5%, or 10 times the bank savings rate you state, with Citi Bank: called Citi Accelerate Savings. I even got a $100 sign up bonus.

 

[Lyle]

I am getting 0.5%, or 10 times the bank savings rate you state, with Citi Bank: called Citi Accelerate Savings. I even got a $100 sign up bonus.

Your losing buying power to inflation though.

 

[Peps]

It is 0% at 36 months and also attractive is 0.9% for 48 months. That's about $250 interest ($5.20 per month) on a $25K vehicle. Get a 4-Year loan and pay it off in 3 years if you can...

agree I also would stretch the financing longer as 0% is as good as 0.9% or even 1.9%..

by the way let's get ready to have house mortgages and car loans in the 7-10% again...

 

[huunvubu]

Your losing buying power to inflation though.

Please give it up with the "inflation" talk.

I have stated over and over on this thread that this is where I park my "Emergency Funds" and I will never risk that fund to market risk.

 

[Jasperw229]

I-bonds are paying 7.12% right now; same level risk as a savings account. Downside is you can't touch the money for the first 13 months.

I'm about the most financially risk averse person you've ever met, but this is a mathematical no-brainer. I also understand the point of an emergency fund (we always have $5k or more sitting in a high yield savings account), but in reality most financially responsible people have several layers of resources before they ever actually need cash - we have a decade of HSA receipts I could cash out at any time, existing I-bonds past 13-months, two credit cards with 0% interest for 15 months, a HELOC, etc...Not to mention that as a 40yr old with two kids and a home, I've tapped our emergency fund a grand total of zero times ever.

You have a decade of hsa receipts to turn in?
I'm surprised they let you do that, my receipts get denied if they are older than 12 months.

 

[liveshot]

I like these suggestions, thank you!

To answer liveshot, Ford has 0% for 36months on the Maverick. You should pick that specific vehicle in their financing section on the website and you'll see it.

My Mav isn't scheduled to be built until the 2nd week of Feb so I still have time to weigh all the options.

Thank you all. I was looking at incentives page and not financing. On that page there was a pull down with multiple terms and rates. Appreciate the guidance !

 

[jcnnjc]

When I bought my 2019 Fiesta ST, I wanted to finance 7k, ford would not let me finance that low.
I had to finance at least 9k.

Sold my mini copper and paid the balance off over the phone.

The lady was actually mad at me she said they had just sent a payment book and where going to lose money on the deal, as I only paid 3.72 in interest.

Not sure if any thing has changed in 3 years,
But for me the minimum was 9k

 

[pndwind]

As an opposing question to the OP, is there a maximum allowed at 0%?

Cost - required down payment.

 

[pndwind]

This is probably a weird question but is there a minimum amount you can finance with Ford at 0%?

I'm probably just going to buy the Maverick outright with cash, but if I decided to pay most of it as a down payment will Ford still finance the small balance at 0% and is there a cut-off amount?

I'm just curious about it and figured I'd ask if anyone knows. I searched Ford's financing section on their website but I didn't find anything that mentioned it.

Thanks!

Edit: I can’t get it to do it. O well, won’t be the last time I’m wrong.

Yes there is a required minimum. Go to the payment calculator on ford.com and adjust it to finance a small amount like $1. It tells you the minimum. I’m too lazy to go do it.
What you can do is finance and then make a ginormous first payment.

 

[DryHeat]

Yes there is a required minimum. Go to the payment calculator on ford.com and adjust it to finance a small amount like $1. It tells you the minimum. I’m too lazy to go do it.

I tried that using the finance calculator on the build page. It seemed fine with letting me finance $1 for 36 months at 0% APR. Were you using a different calculator?

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