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Monthly car payments hit record high of $712 in May

Happy1286

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Maybe I’m just dense, but since when do people get adjustable rates on car loans?

Sure if you haven’t got your vehicle yet, rates climbing could be an issue.

But the OP asked what’s your payment and what will it be with rates going up. That begs an adjustable rate car loan, and I’ve yet to see or be offered such a thing.

Are they really out there? Do people really take those loans? I can see a CC and the adjustable rates having n effect there. But who buys their 60k truck on a capital one card?
But if you did... Those points!
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Djlee1592

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Bannerman

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Maybe I’m just dense, but since when do people get adjustable rates on car loans?

Sure if you haven’t got your vehicle yet, rates climbing could be an issue.

But the OP asked what’s your payment and what will it be with rates going up. That begs an adjustable rate car loan, and I’ve yet to see or be offered such a thing.

Are they really out there? Do people really take those loans? I can see a CC and the adjustable rates having n effect there. But who buys their 60k truck on a capital one card?
Sorry. That may have been confusing, was not talking about adjustable rates. But the day I posted the fed had just went up 75bps so rates everywhere rose and will continue to. Since many of us are still waiting on our trucks I was asking what folks expect their payment to be with the rising rates. I worded it poorly
 

{tpc}

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Sorry. That may have been confusing, was not talking about adjustable rates. But the day I posted the fed had just went up 75bps so rates everywhere rose and will continue to. Since many of us are still waiting on our trucks I was asking what folks expect their payment to be with the rising rates. I worded it poorly
Ahhh gotcha. It definitely throws a wrench into the works for many. We recently went to talk about a early lease turn in on my wifes car and the suggestion was to keep driving it as long as possible, extending the lease if necessary. The reason was because your never going to get that low of a payment going forward whether you get equity, buy it, re-lease a new car, etc. Not without a big down payment anyway. And this was before any of these big rate hikes.

Not to mention you can't get what you want anyway (from GM) as basically they just build whatever option and the dealer takes what they can get. And all are sold pre-delivery to the dealer as well. Its crazy.
 

Wvmtneer

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You've got bigger balls than I do. Or maybe I'm just boring, haha. We max HSA, 401ks, backdoor Roth IRAs, auto-buy $5k VTSAX, and a little commercial RE with play money. But none of it is accessible easily. I do plan to start buying I Bonds though. But that's still locked for the first year.
Ditto on i bonds. I’m treating those as part of an emergency fund or “savings” fund for something(vacation, downpayment on a toy, etc,) I want to buy 1-5 years out. I also do the 401k, HSA, Roth, and VOO in a brokerage account.
 

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Buyer2021

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I was planning on paying cash.. As and when my truck shows up!

But curious how one becomes eligible for a 0% finance deal.. At that rate.. My money can earn more elsewhere..
Lucky you! I guess cash it is for me now.. My truck was supposed to be built last week but it's been crickets!
IF you placed an order for your truck at some date in the past you need to have a conversation with your dealer about the financing incentives Ford had in place on the date when your order was confirmed. Assuming you never changed your order enough to cause it to be re-invoiced, under Ford's price protection policy you should be able to choose between the incentives in place on your confirmation date and the incentives in place on your delivery date (but none in-between).

My dealer did not want to have that conversation until they had the truck in-hand at their lot, no worries, a bit of patience was required. But when that time came they went into some computer system they have linked to Ford and my order. That showed the confirmation date incentives and the delivery date incentives from which I was able to select one or the other (no mix-and-match).

The financing rates on delivery date were relatively high, but on confirmation date there was the 0%/0 down/36-month offer along with another cash incentive that also applied. You may find similar in your case, it just depends on the past timing of Ford's offers.

Note that my below-invoice OTD purchase price had been set at time of confirmation and none of these financing offers had any impact on that.

Only after telling them I would take the 0% deal did they run my credit check to verify I qualified, and Ford came back with the the loan approval within a couple of hours, done and done.

So, in answer to your question, have the talk with your dealer but don't be upset, be patient, if they tell you that conversation needs to wait until your truck is actually there and ready for delivery (don't worry, the confirmation-date-offers, whatever they were, won't change or 'expire' under the price protection policy).

Obviously, it helps a lot if your dealer is one of the 'straight shooters' that has a complete understanding of all these matters (with Granger Ford I was in good hands, they were 100% up-front about everything and made it all a super-easy and overall fantastic buying experience (y) ).

Hope that helps, Good Luck!
 
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STM

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IF you placed an order for your truck at some date in the past you need to have a conversation with your dealer about the financing incentives Ford had in place on the date when your order was confirmed. Assuming you never changed your order enough to cause it to be re-invoiced, under Ford's price protection policy you should be able to choose between the incentives in place on your confirmation date and the incentives in place on your delivery date (but none in-between).

My dealer did not want to have that conversation until they had the truck in-hand at their lot, so a bit of patience was required, but when that time came they went into some computer system they have linked to Ford and my order. That showed the confirmation date incentives and the delivery date incentives from which I was able to select one or the other (no mix-and-match).

The financing rates on delivery date were relatively high, but on confirmation date there was the 0%/0 down/36-month offer along with another cash incentive that also applied. You may find similar in your case, it just depends on the past timing of Ford's offers.

Note that my below-invoice OTD purchase price had been set at time of confirmation and none of these financing offers had any impact on that.

Only after telling them I would take the 0% deal did they run my credit check to verify I qualified, and Ford came back with the the loan approval within a couple of hours, done and done.

So, in answer to your question, have the talk with your dealer but don't be upset, be patient, if they tell you that conversation needs to wait until your truck is actually there and ready for delivery (don't worry, the confirmation-date-offers, whatever they were, won't change or 'expire' under the price protection policy).

Obviously, it helps a lot if your dealer is one of the 'straight shooters' that has a complete understanding of all these matters (with Granger Ford I was in good hands, they were 100% up-front about everything and made it all super easy).

Hope that helps, Good Luck!
That is a very detailed and comprehensive answer to my question! Thank you for taking the time to explain it.. I will just bring it up with the dealer at the time of delivery..
 

Buyer2021

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That is a very detailed and comprehensive answer to my question! Thank you for taking the time to explain it.. I will just bring it up with the dealer at the time of delivery..
No worries!

I just noticed you're in Austin, small world, that's my home town, my Mom still lives in central Austin but for 35 years I've been in nearby Bastrop County!

Good Luck with your new truck deal!
 

STM

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No worries!

I just noticed you're in Austin, small world, that's my home town, my Mom still lives in central Austin but for 35 years I've been in nearby Bastrop County!

Good Luck with your new truck deal!
It is small world indeed! I have lived here for over 20 years.. Central Austin has great neighborhoods... You are probably in town frequently!
 

powerboatr

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all great replies
everyone has their own reasons to do what works for their household
0% might be back, this time next year if current people remain in dc. nuff said. inventory will stagnate. if not 0 it will be really close

however i am retired navy, 100% dav and enjoy a good level of income and savings. my 401k is still carrying well, as its very diverse and invests wisely so far after 20 years. sadly it took 12 years to recoup the 911 losses. and right now its concerning.

we keep the recommended savings in the several higher paying accounts with our credit union
we carry zero credit card debit, even though they both have very high limits ( i could buy the car)
we always shop rates before we buy, sometimes its the credit union, other times it FMC or another bank.
we take the 0% and cash back with fmc and then roll a loan with lower rate at credit union in less than 90 days. we have used x plan except for the gone 2021 250, but dealer gave me over for trade and some other perks that made it less than x plan.
did x plan for the 22 king ranch and had pcos and other stuff, my monthly pay out is low. 1.9%
i have no mortage, no prop tax.

we look hard at paying cash or rolling a loan. i like having the options

now we need to do something about crazy insurance rates. we have farm buruea and its lower than all the others. but still ....1200 6 month for 2 vehicles and a big 40 foot class A is NUTS imo
 

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s.v.t.

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I ordered when there were some FoMoCo financing incentives that I will look to use to finance a portion of my truck.
 

powerboatr

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and one point that was brought up but sort of skimmed
was the dealer kick back they get from loan companies they work with
my 21 f250 was loaned through truist bank ( they just bought the original bank) anyway they got me 1.9 at a time most rates were still above that by a fair margin
they got a thank you gift from the bank.
shop around shop around and math the problem to death to get what is best for your situation
 

RocketFistMooga

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so the rates at the time of your order (in my case January) are honorable?
 

ftrevino7

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so the rates at the time of your order (in my case January) are honorable?
Also ordered in January. Does anyone know what Ford finance incentives were back then? Thanks in advance!
 

Bart

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Also ordered in January. Does anyone know what Ford finance incentives were back then? Thanks in advance!
Might be regional but hopefully someone can clarify. I ordered in Jan and locked in 1.9 for 60 months plus 1k off.
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