Ford 0-0-0 Summer Sales Event: 0 down payment, 0% interest for 48 months, 0 payments for 90 days

[powerboatr]

I had to go look up
My 1st financed vehicle. S10 blazer
We were young..family
16% ..omg
Then 1st house was 12
Refi a few years later to 7
Makes me sick thinking about it

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[jchristena]

As others have said. Even 0% for 48 is a tough payment for a lot of people. Doesn't take much at all for that payment to be 1k+.

 

[dochawk]

I'm going to toss my economics professor hat on for a few minutes and then go back to retirement . . .

And since you asked: a $60k loan at 4% / 5 years costs about $6,300 in interest.

As an overgeneralization, you can estimate the interest on a short term loan at single digit interest by principal * rate * length/2, relying on roughly half the balance being due on average. This does inherently underestimate interest, as there is more on average due in the first half than the second. In this example, it's a 5% under--it's a good first estimate, as you go, but it can't be exact.

(the "rule of 72" is also a useful first estimate--72/rate will roughly tell you how long an investment takes to double. Again, accuracy declines as rate increases.)

There's little that I have more disdain for than paying interest. I'd rather be frivolous with money than spend it on interest. I think it stems from my youth when me and the missus purchased our first home and mortgage rates were 12%. It stung and the experience left a lifetime mark. ?

I loathed it, and happily reached the point in life where everything was paid off.

My student loan stuck around oddly long, as I did a "consolidation" thatextneded it because th4e rate was silly low. I was paying it off early because, even though the rate was silly low, the effort was ore than the expense was worth. I made the final payment the day before interest was waived and payments were waived during covid!

Anyway, as I still have cash reserves, I put aside, in a separate account, the amounts I drew from my covid EIDL loan. I still could have drawn from that if needed, but that didn't happen. As it's invested, there's currently about a third more than it would take it fof.

And on the Maverick trucklet for my wife, I actually segregated a new Roth IRA from my old ones in the amount borrowed. About three months later, there's about $5k more than the balance. I actually have a thread to track it at https://www.mavericktruckclub.com/f...nt-returns-and-loan-for-my-25-maverick.63547/ , which I'm updating quarterly.

And even though I could do it in cash, by pulling from Roth, I'll be taking out loans for the near-million dollar house we'll be buying. The discrepancy between investment rates and mortgage rates is so big . . .

So, yes, I'm a debt hater. I got rid of it all. But I'm operating on a long term; there is, at best, a negligible chance I run out of money, so the criterion is maximizing what my kids get. So I'll use debt--if I can pay it off easily, still leaving me enough at worst case conditions, to have. comfy future with no risk of zero.

I'd take a powerboost under this program, except they still don't have a couple of the options restored. I'm not paying that much for a truck that I don't really need unless they'll sell me what I want . So it's a race between ford options and dodge bothering to ship the ramcharger.



:

Then 1st house was 12
Refi a few years later to 7
Makes me sick thinking about it

But inflation at the time, which salaries followed, made the "real" rate a lot lower than the nominal rate.

I'm a few years younger, but I recall my father telling his friend that he was crazy for taking a 20% mortgage, but their salaries followed, so it actually made sense.

(okay, I'm done putting the "doc" in "dochawk")

 

[UGADawg96]

Dec 2021 60k for 60mo at 0%, still got 17k left. Have had the cash in SPAXX making 5% for the last few years, edged down to 4% this year. Absolute thing of beauty.

 

[powerboatr]

Dochawk
Great lesson
However I see a fatal flaw that over the years we have been beat on as it were to provide for the kids. Etc once we shuffle off
Hence entire industry is focused on what we should leave the kids .

Smart to plan for our retirement and subsequent ease for remaining spouse if one passes

I love my kid and grandchild
But they did zero to build my nest egg
Last ten years they seem as many nowadays to try to bleed my nest egg to support them or thier lack of adulthood
Like most in my age group...once we closed the bank of grand pa and grandma.

Our yields have quadrupled, when you add back in the 23% losses.?
It might seem callous
But I didn't work lo g hours, etc to give my kids easy button once I am gone
Hence now
In my house
We are positioned to do what is important to us...and not worry about the kids etc
In fact they know...don't expect .much
As if any is left it will go to causes we believe in

Rates need to come down, market wide
We are seeing corporations doing thier own financing at 3 to 6 points less thsn .market

 

[Heathen]

No help, Ranger excluded.

 

[tilefordude]

Ford writes a heart filled letter to start this thread. believe me they are making money hand over fist no matter which deal they are promoting.

 

[Gros Ventre]

Have somehow missed the expiration date for this offer. Anyone know?

 

[Frank_N]

Is employee pricing better than x-plan pricing?

 

[Henfield]

Think I got a similar deal on my 21. Call me crazy but I still paid it off early.

 

[flixden]

Think I got a similar deal on my 21. Call me crazy but I still paid it off early.

It didn't matter much back in 2021, because nobody paid you any interest on that money anyways. Right now it would be like throwing money away ....

 

[dochawk]

We are positioned to do what is important to us...

I'm in that boat, too. My mother and my sister in law are using the word "insane" about the house we're looking at buying. But around here, the things we like come attached to 3,900 sq.ft. upscale two story houses. So after decades of scrimping, we're going to enjoy it. If we have to move in a few years or a couple of decades, so be it; she gets a house she loves, I get a 3 car garage with 2 or 3 lifts, and we both get a really nice car and balcony. And it's hard to get a nice stairwell without a two story house!

And I, too, have closed a couple of windows at the bank of dad. Some are still open, but not if spending in a way that I could never afford due to raise them!

 

[flixden]

Wonder if anybody ever got employee pricing and 0% financing. That would be a good deal! Should be possible if the timing is right!

 

[Kodiak]

Wonder if anybody ever got employee pricing and 0% financing. That would be a good deal! Should be possible if the timing is right!

I am sure some people may have got this deal but some got an even better deal. If you order from Granger while the 0% financing offer is valid you will get the truck at 4% below invoice and take the 0% finance when it comes in.

When I ordered in 2022 from Granger I got $2000 incentives, 3% under invoice, and 0%.

 

[flixden]

I am sure some people may have got this deal but some got an even better deal. If you order from Granger while the 0% financing offer is valid you will get the truck at 4% below invoice and take the 0% finance when it comes in.

When I ordered in 2022 from Granger I got $2000 incentives, 3% under invoice, and 0%.

The employee pricing was about the same as Granger's 4% below invoice, the difference is a couple hundred bucks at best.
Don't forget, for most, buying from Granger means additional cost of traveling there for pickup or having the truck shipped.
At least the interest is tax deductable now, helping those a little that didn't get 0%!
But I agree, you got a screaming deal there! ??

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