Monthly car payments hit record high of $712 in May

[Bannerman]

What's your payment/what will it be with rates climbing?

https://abcnews.go.com/Business/monthly-car-payments-hit-record-high-712/story?id=85413102

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[oncechance]

I'll get flamed for this but I was fortunate enough to pay cash for mine. I would have financed but no deals to be had.

 

[Mtnman1]

What's your payment/what will it be with rates climbing?

https://abcnews.go.com/Business/monthly-car-payments-hit-record-high-712/story?id=85413102

Who the hell spends $712 on a car payment? Thats just abouy my mortgage.

I have never spent over $500, and never will.

 

[Bannerman]

I'll get flamed for this but I was fortunate enough to pay cash for mine. I would have financed but no deals to be had.

No flames here, I'm paying cash for my Tremor as well, just curious what others are doing since most of us on here are buying trucks that are much higher than the average new car listed in this article.

 

[mnstang]

Who the hell spends $712 on a car payment? Thats just abouy my mortgage.

I have never spent over $500, and never will.

I do, but Im paying it off in 36 months versus 6 years or some BS.

 

[Moe7]

Will pay cash if I don't qualify for any good rates. If I'm locked into a decent rate from my order date (February), I'll probably still pay half and just finance (invest) the rest.

 

[DBL R]

I got 0% financing when I purchased my truck, clearly I got lucky when my build was pushed through. Financing makes sense if you can get a lower rate than your return on investments. With current inflation I hope people aren’t agreeing to crazy rates or worse, adjustable rates.

 

[Yawyeet]

0% apr for 72 months. No down payment. On the bright side it only hurts for 6 years.

 

[hussar1683]

I’m gonna put 30-35k down and finance the rest for 3 years with my credit union at 1.8% apr. I’ll pay cash if the rates go substantially higher by the time my truck is delivered. Also if I lose another item due to force delete I’ll make it super simple by canceling my order

 

[Bart]

X plan price is going to be just under 62k. Have 20k on my trade in and might throw another 5-10k down and finance the rest for 4-5 years. My Ford incentive from ordering is 1k off plus 1.9% for 60 months so my payment will be in the 600s unless Ford has some crazy incentive when its delivered (doubt it).

 

[Bannerman]

I got 0% financing when I purchased my truck, clearly I got lucky when my build was pushed through. Financing makes sense if you can get a lower rate than your return on investments. With current inflation I hope people aren’t agreeing to crazy rates or worse, adjustable rates.

I know paying cash doesn't make as much sense on paper in most cases (probably why @oncechance expected to get flamed) but to me they just drive different when nobody can take it away from you.

 

[FrankThompson]

I pay almost $700, but the rate I got is less than I can make with that same money in investments so why pay cash?

A don't get me wrong, I get the draw of paying cash and not having a car payment, but much like our house mortgage, our money can do more for us in investments than paying with cash or paying things off at this point in time.

*I realize right now that may not seem like a good idea, but over the long haul, I fully expect to make that money. Just buying the dip now.

 

[oncechance]

I know paying cash doesn't make as much sense on paper in most cases (probably why @oncechance expected to get flamed) but to me they just drive different when nobody can take it away from you.

Exactly!!

 

[Bannerman]

I pay almost $700, but the rate I got is less than I can make with that same money in investments so why pay cash?

A don't get me wrong, I get the draw of paying cash and not having a car payment, but much like our house mortgage, our money can do more for us in investments than paying with cash or paying things off at this point in time.

*I realize right now that may not seem like a good idea, but over the long haul, I fully expect to make that money. Just buying the dip now.

For me it's the difference between an appreciating vs a depreciating asset. (We are not in normal times so some of these rules of thumb are breaking down).

And the big one is, all the numbers work if you take humans out of the equation. Most people don't have the discipline to invest that cash.

 

[FrankThompson]

For me it's the difference between an appreciating vs a depreciating asset. (We are not in normal times so some of these rules of thumb are breaking down).

And the big one is, all the numbers work if you take humans out of the equation. Most people don't have the discipline to invest that cash.

Yup, which is why I get the draw of paying cash. Thing is we keep the money in a place we can still access it, so if we need to pay it off, we can.

This is also how I treat those HD/Lowe's "0% for X months". I put the money we would have spent on it in some investments and just pay it off as 0% over time.

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