Monthly payment

[huunvubu]

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

I put $8,000 down on my 0% $26,068 loan for my 2022 Maverick.

$3,000 of that put on the FordPass Visa Card that earned 30,000 points for the $3,000 + 11,000 Bonus Points for first purchase + $100 Statement Credit. The value is $305 in points and credit.

The other $5,068 was to reduce the loaned amount to an even $18,000.

That made monthly payments of $500 over the 36 months

I paid off the FordPass Visa Card in full on first statement so no interest was paid.

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[stoptothink]

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

Hey, I think I recognize that username from Bogleheads. Paying off our 2.75% mortgage in early '20 was, in hindsight, a terrible financial decision.

 

[surfstar]

Hey, I think I recognize that username from Bogleheads. Paying off our 2.75% mortgage in early '20 was, in hindsight, a terrible financial decision.

Yes, "hi" - although I got banned from BH for posting comments that were perceived as critical of the rich people problems threads, I guess lol
Definitely recognized your username

Back when rates were super low, I told my wife "I read on Bogleheads that a 30 year mortgage at today's rates is a good inflation hedge" - that REALLY panned out!

 

[atomguy245]

$455 for 60 months at 1.9%. No point in paying it off at 1.9%. I paid off my other car loan that was higher instead.

 

[dalola]

I put $8,000 down on my 0% $26,068 loan for my 2022 Maverick.

$3,000 of that put on the FordPass Visa Card that earned 30,000 points for the $3,000 + 11,000 Bonus Points for first purchase + $100 Statement Credit. The value is $305 in points and credit.

The other $5,068 was to reduce the loaned amount to an even $18,000.

That made monthly payments of $500 over the 36 months

I paid off the FordPass Visa Card in full on first statement so no interest was paid.

The credit card points makes perfect sense.....I do that all the time with my Kroger rewards card.

But why the $5068 in cash? Was there some significance to a sub-$20K loan balance?

 

[stoptothink]

Yes, "hi" - although I got banned from BH for posting comments that were perceived as critical of the rich people problems threads, I guess lol
Definitely recognized your username

Back when rates were super low, I told my wife "I read on Bogleheads that a 30 year mortgage at today's rates is a good inflation hedge" - that REALLY panned out!

Ha ha, I've gotten temporarily banned so many times on that board and for probably more ridiculous reasons - once because I was personally attacked in a direct message and did not even respond. Politics aren't allowed on that board, but the moderation is extremely political.

Some debt is definitely good, especially when current rates are high (historically they aren't right now, although it seems to be because of the insane rates since the market crash in '08). I guess it's cool we don't have any form of home payment, but it was a poor decision for wealth building.

 

[PriusHater]

2022 XLT Hybrid: $26,007 sale price, put $6k down, financed 3 years at 0.9% interest through Ford Credit. Payment is $563.49 per month.

 

[ladyhawkgt]

I put $8,000 down on my 0% $26,068 loan for my 2022 Maverick.

$3,000 of that put on the FordPass Visa Card that earned 30,000 points for the $3,000 + 11,000 Bonus Points for first purchase + $100 Statement Credit. The value is $305 in points and credit.

The other $5,068 was to reduce the loaned amount to an even $18,000.

That made monthly payments of $500 over the 36 months

I paid off the FordPass Visa Card in full on first statement so no interest was paid.

how did you earn 30,000 points for spending $3,000? you 42,000 for buying a whole car. 11,000, yes. where did the extra 30,000 come from?

 

[huunvubu]

how did you earn 30,000 points for spending $3,000? you 42,000 for buying a whole car. 11,000, yes. where did the extra 30,000 come from?

For my 2022 Maverick:

Putting $3,000 on the FordPass Visa card earned 30,000 points.
A bonus of 11,000 points were earned for the first purchase
and a statement credit of $100 was also earned

I also got the 42,000 points for purchasing the 2022 Maverick

Total of FordPass points 83,000 (worth $415) plus $100 statement credit

I used these points and credit to buy the Hard Drop-in Bedliner and the Front/Rear Splash Guards for FREE

On my 2023 Maverick:

I put $5,000 on the FordPass Visa card which earned 50,000 points.

I also got the 42,000 points for purchasing the 2023 Maverick

Total of FordPass points 92,000 (worth $460)

I have used these points to get the Ford Bed Mat, Cubby for the Driver Side in the Bed and a Tailgate liner for FREE

I still have 31,172 points remaining. A $155.86 value

 

[huunvubu]

The credit card points makes perfect sense.....I do that all the time with my Kroger rewards card.

But why the $5068 in cash? Was there some significance to a sub-$20K loan balance?

Just wanted to keep the payments at $500

 

[ValenciaOrange]

[0

 

[ladyhawkgt]

For my 2022 Maverick:

Putting $3,000 on the FordPass Visa card earned 30,000 points.
A bonus of 11,000 points were earned for the first purchase
and a statement credit of $100 was also earned

I also got the 42,000 points for purchasing the 2022 Maverick

Total of FordPass points 83,000 (worth $415) plus $100 statement credit

I used these points and credit to buy the Hard Drop-in Bedliner and the Front/Rear Splash Guards for FREE

On my 2023 Maverick:

I put $5,000 on the FordPass Visa card which earned 50,000 points.

I also got the 42,000 points for purchasing the 2023 Maverick

Total of FordPass points 92,000 (worth $460)

I have used these points to get the Ford Bed Mat, Cubby for the Driver Side in the Bed and a Tailgate liner for FREE

I still have 31,172 points remaining. A $155.86 value

well you must have some kinda crazy deal. i got 11,000 plus $100 for my $3000 card down payment. you only get 5% back on dealership purchases.

 

[atomguy245]

interesting. are they still calculating interest against the original principal, I wonder? if they are not crediting your overpayment against the principal, I could see it instead being credited as an early future payment.

This year I discovered that GM Financial does not accept principal only payments. After sending them extra money for months, I noticed on my statement that they were applying an interest charge to every extra payment I sent in instead of applying the full amount of the extra payment to the balance. I immediately paid off that loan. My goal had been to pay it off in 3 years, but if I was going to end up paying all the interest anyway, what's the point?

 

[atomguy245]

Seems that Maverick truck club members are not a typical sampling of average car buyers.

Lots of paid-cash / large downpayment / shuffled, traded, sold & made profit situations reported.

Most people that have to buy cars right now are buying questionable used cars for 10-20k and paying over 10% interest which is scary and horrible….

I confirm I’m old when I hear myself say it’s a shame what this world is coming to. My first car was worn out but was $300 back in 82. Now a worn out starter is 8k or more.

Anyway. Maybe when I get my Mav it will be next summer, there will be a surplus and some kind of incentive. Not looking forward to over 7% interest.

Surveys here show that most of us are 40 years or older. We have good credit and we have money lol. And we are very cheap, that's why we bought the Maverick. We recognized the value in a well designed low priced truck.

 

[huunvubu]

well you must have some kinda crazy deal. i got 11,000 plus $100 for my $3000 card down payment. you only get 5% back on dealership purchases.

Here are the records of my FordPass Account from 12/13/2021 when I purchased my 2022 Maverick to 10/16/2023 when I redeemed points for the "driver side bed cubby and the tailgate liner".

12/13/2021 - Ford Purchase - Vehicle Purchase (2022 Maverick) - Earned 42,000 points
12/14/2021 - Rewards Visa - Spending Amount at least $3,000
01/11/2022 - Rewards Visa - Ford Purchases 5% back - Earned 30,000 points ($3,000 on Visa Card)
01/11/2022 - Rewards Visa - First Purchase - Earned 11,000 points
09/23/2023 - Ford Purchase - Vehicle Purchase (2023 Maverick) - Earned 42,000 points
09/23/2023 - Rewards Visa - Spending Amount at least $3,000
10/12/2023 - Rewards Visa - Ford Purchases 5% back - Earned 50,000 points ($5,000 on Visa Card)

Even though the FordPass records shows 5% I am actually earning 10% as I believe my dealership puts the purchase as "Ford Service"

Your Points add up fast

Wherever the road leads, your card will help you earn on every purchase from the dealership and gas station to restaurants and parking.

• 5% Back in Points on Ford Dealership Purchases
• 3% Back in Points on gas, auto insurance, tolls, parking & dining
• 1% Back in Points on All Other Purchases
• 10% Back in Points on Ford Service ‐ That's 5% Back in Points on Ford Dealership Purchases plus 5% Back in Points with FordPass Rewards

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