Monthly payment

[ladyhawkgt]

Yeah, I haven't actually went to NFCU yet to see what they will give me, but I also have 800+ and have had loans before, so hopefully I can get the 4.74. I also plan on paying it off sooner than 5 years, so I shall see what happens.

if you go for the 3 yr you will get a few tenths shaved off.

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[Scott Asheville]

Almost $800 a month, even though I could have paid cash. Because why would I not take 0% financing for 3 years? At current interest rates, it's the same as getting a $1,000 + rebate.

 

[Andrew1966]

What are ya'll paying per month? I am financing a 2023 ecoboost. $33k after taxes fees. Trading in my car for a minimum of $8.5k. $5k down. 7.7% interest rate. $379 per month.

originally had 0% financing but after 2 months got sick of having that as my only debt just paid it off.

I know the smarter way would have been to just park that cash in a money market while it draws down but if the banks freeze up, (IE bail-ins), I wouldn’t have access to that cash but the debt remains real.

 

[RichardCranium]

I don't have my truck yet, and in the time that it is taking to build, I could be saving the cash for it, but I, like many others, have decided to prioritize paying off my home. I understand that interest on a home is tax deductible, but many people take a standard deduction in which case, having a house payment does not benefit them financially.
Once the house is paid off, I will follow the rollover mantra, where I will pay off my highest interest debt first (currently solar), and then roll the payment over to my next highest debt (probably the Maverick) until everything is paid off.
As stated before, I am going out of order with my house because that will free up a large amount of monthly payment in order to pay off my other debts faster. I also plan to start fully funding my IRA each year. My goal is to have everything paid off in 3 years. At which time, I will then be able to put everything that I was using to pay down debt into CDs and using it to have some fun.
I too am a big proponent of credit card rewards, and pay those off every month, but I am not quite to the point in my life where I can pay cash for a new vehicle when I need to get one. That is part of my 6 year plan (6 years instead of 5 because that is when my oldest will be driving and we will be looking for another new vehicle) I plan on paying for it in cash.
Thanks to all for their insights into payments for their Mav. and those that have 0%...

Oh, and for those that were talking about the interest and paying ahead. Many car loans (I have had several in my life) do what is called "Prepaying interest" where the interest is calculated for the loan is "Paid upfront." Your monthly payment is your principal added to the calculated interest, divided by the number of payments. If you pay your vehicle off early by making all of your payments, the interest is recalculated and they should pay you back the difference. Or, you can do what I usually do, and request the early payoff amount before you make your last payments and they will do the calculations before you pay them. Either way, you will save on interest by paying early. All of my prepaid interest loans would push the due date of the loan instead of changing the principal balance owed.

 

[todd92]

0

 

[Vickram]

YEAH , and only one state has THE THUMB .

 

[Vickram]

I don't have payments . I returned all my cans and pop bottles, to Kroger ,and that paid for my 2023 Lariat .

Yeah , I admit , I have a drinking problem . LOL

Just kidding , I put a little Quid aside each week or so ,waiting for the right time .
August 19 2023 ,was the right time .

And ,NO I do not have a drinking problem. I only drink on Two occasions ,

When I,m alone or with someone .

And again, LOL

 

[OrCoaster]

I don't have payments . I returned all my cans and pop bottles, to Kroger ,and that paid for my 2023 Lariat .

I don't have payments either other than the one to get the keys from the salesman. I don't need a drinking problem either. It leads to a bathroom problem.

 

[pigsareus]

At the end of June, I borrowed at 6.05% from PenFed Credit union for 72 months. The internet rates are about the same now. The dealer wanted 7.99%. Very easy to do business with.

A nice feature is that when you pay extra, they move the due date of the next payment forward. My next payment is due in October 2024. Ford Credit does not do that.

they do that so that if you choose to pay it later as they let you it makes up the difference in their profit from the interest rate - they make a little less in interest when you pay more on your payment, them delaying the next payment date does nothing more than let the additional principal sit and earn them more interest (and you pay for it). They do seem to be doing you a favor but actually...they're not.

 

[surfstar]

I don't have my truck yet, and in the time that it is taking to build, I could be saving the cash for it, but I, like many others, have decided to prioritize paying off my home. I understand that interest on a home is tax deductible, but many people take a standard deduction in which case, having a house payment does not benefit them financially.
Once the house is paid off, I will follow the rollover mantra, where I will pay off my highest interest debt first (currently solar), and then roll the payment over to my next highest debt (probably the Maverick) until everything is paid off.
As stated before, I am going out of order with my house because that will free up a large amount of monthly payment in order to pay off my other debts faster. I also plan to start fully funding my IRA each year. My goal is to have everything paid off in 3 years. At which time, I will then be able to put everything that I was using to pay down debt into CDs and using it to have some fun.
I too am a big proponent of credit card rewards, and pay those off every month, but I am not quite to the point in my life where I can pay cash for a new vehicle when I need to get one. That is part of my 6 year plan (6 years instead of 5 because that is when my oldest will be driving and we will be looking for another new vehicle) I plan on paying for it in cash.
Thanks to all for their insights into payments for their Mav. and those that have 0%...

We max out our 457 (gov 401k), Roths and an HSA. Happy to sit on our 30 year mortgage at 2.5% for another 28 years - no rush to pay that off!
If your mortgage rate is under 5%, I'd say don't bother and invest the money in retirement accounts instead (do you have access to a 401k?). You get a tax deferral and then that money can compound and earn more for you over the years.
Not all debt is bad (also having a paid off house may decrease your monthly bills, but you have less liquidity - toss some cash in a Roth and you can tap that as an emergency fund if ever needed, and Roth IRA space is limited - only $6500 each year, so fill it now is my suggestion)
https://www.bogleheads.org/wiki/Prioritizing_investments

 

[ValenciaOrange]

Put 7 k down. Zero percent financing. $550.00 a month for 3 years. Only owe 13 more months.

 

[dalola]

Put 7 k down. Zero percent financing. $550.00 a month for 3 years. Only owe 13 more months.

Just curious on your thought process of putting $7K down on a 0% loan?

 

[Ozarkbeard]

Just curious on your thought process of putting $7K down on a 0% loan?

Exactly.
That $7K could be making money in a CD or other investment.

 

[dalola]

Exactly.
That $7K could be making money in a CD or other investment.

Conventional wisdom leans this way.....hoping the OP can teach me something I'm not thinking of.

 

[RichardCranium]

We max out our 457 (gov 401k), Roths and an HSA. Happy to sit on our 30 year mortgage at 2.5% for another 28 years - no rush to pay that off!
If your mortgage rate is under 5%, I'd say don't bother and invest the money in retirement accounts instead (do you have access to a 401k?). You get a tax deferral and then that money can compound and earn more for you over the years.
Not all debt is bad (also having a paid off house may decrease your monthly bills, but you have less liquidity - toss some cash in a Roth and you can tap that as an emergency fund if ever needed, and Roth IRA space is limited - only $6500 each year, so fill it now is my suggestion)
https://www.bogleheads.org/wiki/Prioritizing_investments

I absolutely understand what you are saying, but there is some security in not having a house payment and low power payments. I am the primary bread winner, and since I am fat, I can’t get much life insurance. My wife has been staying home to raise our kids for the last decade. If something happened to me, she would need to go to work and would not be making as much as I do. To know that she would only be paying about $500 a month for a place to live (taxes, insurance, power, etc. ) is very comforting to me. It is nice to have liquidity, but to be able to have a home you could survive in with minimal income if something were to happen is what I want.

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