0% APR from Ford again?

[FORDTEXAS]

Sure the payment would be high

majority couldn’t afford the high monthly payments.

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[powerboatr]

We took advantage of the 0 for the 23 explorer
Agreed 0 is good choice
Especially when other accounts are making money

But to avoid that "mortgage " like payment
Put some down
We also never roll esp or taxes into loan
Just the principle

The offer is dealer inventory...f150s
Plus others
My dealer has a good selection of 24s
As does the 3 in our 50 mile radius

 

[JJSnell]

majority couldn’t afford the high monthly payments.

True... Been following Dave Ramsey long before anyone else was.
Paid cash for my '22 Plat. Title in hand.
Learned from my Dad's mistakes; two bankruptcies and three divorces... He passed owing $200k on his house at 73yrs.

Won't ever repeat those mistakes.

 

[BoostedSushi]

How so? Sure the payment would be high, but if you already have the cash, you can invest it in a number of ways and actually make money while Ford floats the truck balance over 3 years.

If I pulled a large portion out for a down payment, I'd be losing potential interest/dividend income in the long run.

Exactly.

that’s what I did for our truck. Put very little down and then did 0/36. Payment is nuts, but 0% in this environment of high interest rates is great. The 0%/72 on the EVs is madness.

Also I’m already above water on the truck in case of an emergency!

 

[Eskram]

majority couldn’t afford the high monthly payments.

Agreed. Many years ago, I swore I'd never pay more than $300/mo for a vehicle..

I wish this offer was around when I purchased.. 3.9% was the best around at the time, but ultimately I'm still making a few percent gain over just buying it outright.

 

[bdginmo]

0% for 36 months equates to about $278 per month for every $10,000 financed.

When I bought my 2022 I planned on paying cash but they offered that 0% for 36 months so I paid half in cash and the other half financed. $30k financed. I am over halfway through the payments now.

Another way to think about it is how much money you can make off the capital Ford is willing to lend to you. I get $821 per $10000 financed of cash in your pocket based on the spread of the 0% you pay to Ford and the 5.2% a money market fund will pay you over a period of 36m. If MM rates decline it would be less obviously.

 

[Buyer2021]

0% for 36 months is only good if you plan to put at least 50% down payment..

That's an overbroad statement, it depends on your overall financial picture.

Sure, some folks may need to 'buy-down' the monthly payment by making some amount of down payment, but the amount one puts down requires careful consideration - there's no single amount / % that's right for everyone. And yes, for some it can make sense / cents to finance at above 0% if rebates and the interest rate combine favorably.

It takes a bit of time and thought to manage your money wisely, but there are plenty of free online calculators to help you run different scenarios, and the payback for the effort can be meaningful especially for those with tight finances.

IMO the main thing is to do these calculations and know your best solution before you enter the dealer's closing office.

 

[OldMan1962]

That's awesome if you have an F-150 to trade that's only a few years old, paid off, has extremely low miles and is still worth a pile of cash. I did that a few years ago when I traded my paid off '18 plus $8k for my new '21. I know it was a bit of a fluke during COVID though.

 

[Sigma1914]

I’ll stick with my 1.9% for 72 months on my current 2023 Rocky Ridge 5.0L that I financed for $75K instead of the $106K sticker price. And besides the 2024/2025 F-150’s don’t have Flex Fuel. No thanks.

 

[Bossharp]

Granger's 4% below invoice with low dealer fees can have a huge impact on any decision too.. especially with a out the door price from ANY other dealership. When I first started shopping for a 2023-2024 RCSB I frankly wondered how ANYBODY could afford high trim extended cabs at 7.9% interest or more...$1,500.00 payments anyone?

 

[Ruckus]

True... Been following Dave Ramsey long before anyone else was.
Paid cash for my '22 Plat. Title in hand.
Learned from my Dad's mistakes; two bankruptcies and three divorces... He passed owing $200k on his house at 73yrs.

Won't ever repeat those mistakes.

True that, too many here try to play the finance game, it’s generally not smart. Pay cash for a depreciating asset. Payments allow folks to spend more than they can afford, nothing more.

 

[Azstroke]

True that, too many here try to play the finance game, it’s generally not smart. Pay cash for a depreciating asset. Payments allow folks to spend more than they can afford, nothing more.

Not everyone has that luxury, although I agree you should live within your means, and if that results in not purchasing the newest and most expensive vehicle that the advertising market insists that you must have, so be it. In my case, I did pay cash, but I'm old and just realized I can't take it with me.

 

[HammaMan]

There's more than one finance offer available. The 0/36 is also 2.9/48 3.9/60 4.9/72. You can also forgo the no payments for 3 months and lose the $900 and get a 2.9 for 72. Offers vary by region so it's really based on your zip. The 2.9/72 isn't on the website and was used for the 24 we just picked up w/ ~10k off sticker.

Deferred payments still accrue interest for longer durations. The 2.9/48 and up offers don't make sense. The 2.9/72 offer is pretty good for today. Standard financing sees first payment due in 45 days so the whole no payment for 90 days is more marketing than anything. If you have the cash, the 0/36 is really a no-brainer as it's too easy to make 5% return right now.

 

[Ruckus]

Not everyone has that luxury, although I agree you should live within your means, and if that results in not purchasing the newest and most expensive vehicle that the advertising market insists that you must have, so be it. In my case, I did pay cash, but I'm old and just realized I can't take it with me.

It’s not a necessity like food/shelter so I guess I tend to differ. Just don’t buy an expensive vehicle if you need to finance, it’s just basic common sense. Sadly the finance companies have made it “normal” to have a vehicle payment which is truly a shame.

 

[dochawk]

and the rest of my money has been earning great returns in the meantime, so it was a no-brainer for me.

This is the ay to do things when you get such chances.

(you're warming my Econ professor heart!)
?

I did the same thing when I bought my 2005 XLT out of dealer inventory, I'll never pass on a chance to use Ford's free money.

yes; take locked in gains when you can!

I get $821 per $10000 financed of cash in your pocket based on the spread

With the caveat that investing the way I am would be downright reckless for most folks (as in, "anyone who has a chance of running out of money before death" [as opposed to looking at the amount to be passed down-generation]) . . .

With my data for a couple of decades, I estimate pulling out $10,000 to cost me, on average, about $1,500/year (actually somewhat higher, but that's a good working number.).

Using *very* rough estimates and rounding, there is $5,000 unpaid outstanding, so $750/year for three years (at a couple of percent; it would be a good estimate. It gets rougher by 15%!). So only pulling out 1/36th per month has ford paying for almost a quarter of the truck as compared to my paying cash (then again, there is the risk of losing doing this, too; back to the "risk of zero" before death!).

And besides the 2024/2025 F-150’s don’t have Flex Fuel.

I have yet to find a non-racing point in E85 . . . The energy content is too much lower than regular gasoline to make up for the price difference. [ethanol has 2/3 the energy per volume as gasoline. So regular E10 is missing 3.3% as compared to pure gasoline, while E85 is missing 28%. It's missing 1/4 of E10 energy, thus you would need 4/3 as much, so it needs to be less than 3/4 the price].

It does, though, let you run at higher compression due to the extra octane (which is why racing uses it), so I suppose there could be towing applications, too.

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