Damn Ford, you are out of your flipping mind..

therapy · July 31, 2012

there are so many better vehicles you can get for 60k.. even 45k...

i think some people are ok with having payments of 450 for 9 years.. not me

Most people that buy high end vehicles do not finance. They got the money because they do not do stupid stuff, like financing a depreciating asset.

What differance does it make? No matter how you buy it you still loose money, you just loose a little more financing it.

Huge difference. Never forget: Money makes money and the money money makes makes more money.

Take a 40k 6% car loan financed 72 months. You just lost $7730 in interest fees and the proceeds it would have made invested.

The $7,730 is just the tip of the hat when it comes to buying with cash.

The only argument is opportunity cost. Could you use the money to make more than $7,730 in the same time frame?

So let's say you invest the $40k and make your $660/month payments on the car out of your income.

If you can get better than ~3.25% annual return on your $40k investment, then it's cheaper to borrow the money for the car. That being said, most people don't do this or think this way so it doesn't matter much.

I financed my Sierra because it was 0% for 60 months. Literally free money. Even if I parked the ~$30k my truck cost me in a shitty savings account, I'd get .5% return on interest, which meant it was cheaper to pay the payment than to pay it off entirely.

So realistically it's not like it never makes sense to finance a new car.

Buying a new car is almost always a horrible decision in the first place. The 2-3 year old lease returns, CPO or whatever are the best buys in my opinion. I bought my wife a 2006 Honda Pilot in 2009. It had 35,000 miles on it. Brand new they are $30k+. We got it for $15,500. KBB was at $18900 for retail, $16800 for trade in. I just shopped around used car lots until we found one she liked and then we negotiated price. We walked away from 3-4 different lots because I felt their deals weren't good enough.

As a truck enthusiast it's super easy to get excited about the new vehicle. I know it's going to be a challenge for me when the 2014s come out. But I have a 2007 with 80k miles on it, and aside from routine maintenance, it's been pretty bulletproof. New battery, new brakes, one set of new tires. That's it so far aside from fluids and filters. But I know that when I see the 2014, it'll have stuff I think is better. Probably a better engine, better interior, better transmission (mine's still the 4 speed), etc. But technically my wife's car needs replacing before mine - she's got 110k miles, it's a year older, and she's been eyeing the Suburbans for a while now...

My feel right now is that I'll probably get a 2013 Suburban when the 2014s start showing up on lots at the end of next year. I know I said buying new is stupid, but my wife has never in her life owned a new car. Hell, until she met me, she never owned a car worth more than $5k. I'm sure they'll be doing the same 0% for 60-72 months that they did with the 2006s, and while there are a few new features, I wish I'd waited at least till 2008/2009 to buy mine. That 6-speed tranny would have been nice.

MikeNH · July 31, 2012

Low mileage used is a horrible proposition now. The crap economy slowed car sales so much for a couple years the selection is slim and prices reflect this. New is a better deal in most cases right now. And I won't even bother the stupid debate of finance vs cash. Most of us can't lay out the money for a new enough vehicle to be reliable and in the end a vehicle is a stupid "investment" anyhow.

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Doug_Scott · July 31, 2012

You would think that GM (they all do it) would not let them do that due to loss in sales, it should be against the law.

Actually, what you are suggesting is against the law. Manufacturers cannot dictate what the selling price is, they can only suggest. Outside of that is called price fixing. That is why it is "MSRP" and not "MRP"

Manufacturers of some items can dictate a minimum advertised price (MAP), such as some of the flashlights on my website, Snoozer pillows, etc.

They cannot tell what to SELL it for though. A lot of companies have policies regarding internet pricing, Arai helmets come to mind, they will not allow vendors to post prices for less than MSRP online. No problem selling for less, just don't post the price publically.

truckofwinandawesome · August 6, 2012

Most Expensive ford on my Local Dealer's Lot is a 2012 Super Doody, at $61,235, and at Alexander Chevy-Buick-GMC, the Most Expensive thing they have is a 2012 Denaleh 2500HD at $59,820. (and knowing GMC, that Denaleh is probably Loaded to the Nines)

Nitro375 · August 28, 2012

That ain't no "Raptor", that's a "Rapist"!!

Coolmaker · August 28, 2012

Another way of doing this. Start a savings account, put money in it every month, you are making some money on it. Then when you have enough, go buy what you want and pay cash. Dealers will work with you better too, I bought the 2012 SLT for dealer cost (I have the GM printout of it), he still made the 2 1/2 percent hold back at the end of the year. This way, no payments, no interest period. ;)