Is that the impression I gave off?
As long as that's what makes you happy in life I say go for it. I see it both ways. I've seen people living in trailer parks purchase vehicles with $1200, $1300, $1500/month payments. I've also met people with half a million dollar houses drive around in beaters because they just flat out refuse to finance a vehicle. If you have a steady job, enough disposable income each month, and content where you're at in life for the duration of the auto loan its a no brainer.
It amazes me to see the living conditions of some of the people driving around in Mach 1s, GT350s and boosted coyotes, but its also why I love the mustang community. These people are passionate about their cars
If this were true there wouldn't be 72 or 84 month loans. These are specifically designed for those that cannot really afford a new car. Unfortunately that encompasses a large percentage of folks here in the US.
I agree with this though I'm of the opinion that it's highly financially irresponsible to make yourself liable for a car for that long.
They are more designed for the impatient. The logic is "I can save for a down payment to get a 48/60 loan with manageable payments... orrrr I can get a 72/84 loan because I want the vehicle right now with payments in my range." These are usually the people that live *paycheck to paycheck" and as soon as they get freed up credit they see the need to utilize it. Unfortunately, most people don't look at long term financials anymore or are even taught it. Thus they never understand the longer your loan terms the more money you're throwing to the bank regardless of interest rate. We're raising a society of dependency unfortunately, but I'll stop before getting political.
They’re a predatory practice that take advantage of financially illiterate people to get them into a vehicle well out of their means, padding interest to the deal, and leaving them with a car that’s worth far less by the time it’s paid off. Of course, they probably roll that upside down loan into another car and repeat the cycle.
So lacking in basic mathematical skill and critical thinking?
This is one of the multiple reasons I'm going to go through my own bank and not through Ford unless they're offering 0%, which as I said already is highly unlikely to happen on a DH.
When you're ready to, go to the NADA site (don't use KBB). It can give you a rough trade value. I would plan on the lower end of the trade value range. You'll have to wait until you're close to pulling the trigger as market values can fluctuate drastically in the next couple of years. Anything you see now could end up thousands of dollars different in either direction.
In case anyone isn't aware of this, Ford ESP can now be purchased for up to 10 years. Is that a sign of financing terms to come?
It can very greatly for sure. I made the mistake of waiting 1 more year to sell my 2019 PP2 to order a Mach1. Obviously the market was way different a year ago with the highly inflated car market. Things have come back down now. Luckily it worked out well enough that I should be putting down 1/3 the price of the M1. Plus, having the money for taxes/plates and full vehicle PPF. I might just pick me up a 10 year warranty with it as well
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