Years financing a S650

[lcbrownz]

Since a new S650 GT is going to sell north of $45K, how many years will it take for a 1st time young Mustang buyer to afford to finance this car, and will the car hold up that long?

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[Skye]

I don't believe a general question like that can be answered. Each individual will have their own series of variables (interest rate, closing costs, purchase price, money down, length of loan, contract rules, depreciation, maintenance, insurance, etc.) to name just a few.

One variable I think I can comment on: I don't think the concern should be about duration of loan and payments, but, how much in the end is it going to cost? What's the bottom line relative to what other buyers are paying for a like vehicle?

The order guide and initial pricing will be a start. The S650 is just beginning. Once order banks open, we should see a wide range of posts of buyer experiences, with costs.

 

[TheCur]

I don't think there is an answer to this question to be honest. There are way too many variables.

What is a comfortable payment for me might be out of reach for someone who makes less money / has more bills / wants to buy RIGHT NOW and doesn't save up for a large down payment.

 

[93-Oct Mayne]

This is really an individual question, but sticking to 10% of your annual income for car payments is a decent rule. Simplified example: $50k financed for 5 yrs = $10k per year, so you'd need to make ~$100k/yr (also need to factor in the above mentioned costs)

 

[lcbrownz]

I don't believe a general question like that can be answered. Each individual will have their own series of variables (interest rate, closing costs, purchase price, money down, length of loan, contract rules, depreciation, maintenance, insurance, etc.) to name just a few.

One variable I think I can comment on: I don't think the concern should be about duration of loan and payments, but, how much in the end is it going to cost? What's the bottom line relative to what other buyers are paying for a like vehicle?

The order guide and initial pricing will be a start. The S650 is just beginning. Once order banks open, we should see a wide range of posts of buyer experiences, with costs.

Most average "new car" buyers only care about "what's it going to cost me per month and for how long " just to drive a new Mustang off the lot. None of that other stuff matters to young new buyers (21 and below).

 

[93-Oct Mayne]

Most average "new car" buyers only care about "what's it going to cost me per month and for how long " just to drive a new Mustang off the lot. None of that other stuff matters to young new buyers (21 and below).

That's a mistake

 

[zstanny]

All very subjective. I really try to pay off the car before powertrain is up. If you've got a decent interest rate, there really isn't any rush or stress to pay it off prior to that (IMO).

I usually take longer loan terms, to have a lower required payment, and typically overpay monthly, again, trying to pay it off before powertrain is up. That being said, MOST vehicles should make it to 100K without major repairs. If something major is going to sh** the bed, it generally happens early.

I don't daily my fun car due to a long commute, and am under the assumption that at any time, I could get rid of the car and not be negative. I'd have a little more frugal perspective if I daily drove a 50K+ car.

 

[Skye]

Most average "new car" buyers only care about "what's it going to cost me per month and for how long " just to drive a new Mustang off the lot. None of that other stuff matters to young new buyers (21 and below).

That's unfortunate. I'd like to think it could be a teachable moment, helping to prevent a lifetime of continuing to do the same. The cumulative effects of even little gains or losses over a timeline of decades can be massive.

 

[seanuf99]

Most average "new car" buyers only care about "what's it going to cost me per month and for how long " just to drive a new Mustang off the lot. None of that other stuff matters to young new buyers (21 and below).

I dont think its just 21 and below or first time new car buyers I think it is sadly across all age groups and among way too high a percentage of the population.

 

[zstanny]

Dodge is one of the WORST about this. They'll finance you for higher than your mortgage/rent, at an interest rate triple what you should be taking. They do it every day.

Edit: Meander over to some of the dodge and hellcat forums and you'll quickly find examples of what I'm referring to.

That's unfortunate. I'd like to think it could be a teachable moment, helping to prevent a lifetime of continuing to do the same.

 

[17Magnetic5.0]

Me personally I try to get the ford extended warranty with the car and the length of it which I think is 7 years is what I go for on loan length as well. As long as you have good credit and low interest you’re only paying about 50 dollars in interest per month in the long term it is more money yes but if you saved up and invested that saved money properly you’ll be ahead at the end of the loan term. Even better I think ford was financing for like 1% at one point when they run promotions something like that is a no brainer

 

[Schwerin]

That's a mistake

Yeah its poor finance, which schools to NOT properly teach. Its on parents that often never think to teach it, or don't know it themselves. My dad never grew up knowing anything about finance in the 60's/70's and his mom was horrible at it, but luckily my mom grew up knowing it so I learned from her. But also based on the median income a person in the US cannot properly afford a base model Honda Civic either. Thts why we have 7+yr car loans becoming so popular.

In 2000 the median income was 42k, and a base Ford Escort was $9,999. Under 24% of that income. Gas was about $1.50, and that Escort got about 30MPG.

In 2020 the media income was 67.5K and the Ford EcoSport was 21k Roughly 31%. Gas is $3.40 and that EcoSport gets about 25MPG.

Now in 2023 the EcoSport will be dead and the cheapest Ford will be the 22k Mavrick, and MPG is finally back up to 30MPG.

To stay in ratio the average entry level car should be 20K. But new cars, even good quality, low milage, used ones recently, under 20k are hard to find. The only new cars I've found new for that are the:
Hyundai Venu, Accent, Elantra
Chevy Spark(being killed off soon)
Nissan Kicks, Sentra, Versa
Mitsubishi Mirage(I think this is being killed off soon)

 

[lcbrownz]

Me personally I try to get the ford extended warranty with the car and the length of it which I think is 7 years is what I go for on loan length as well. As long as you have good credit and low interest you’re only paying about 50 dollars in interest per month in the long term it is more money yes but if you saved up and invested that saved money properly you’ll be ahead at the end of the loan term. Even better I think ford was financing for like 1% at one point when they run promotions something like that is a no brainer

But it sounds like you haven't been a 1st-time new Mustang buyer in a while. Back in 2007, I was a first-time Mustang buyer, and the Ford dealership finance folks kept pushing all sorts of crap at me to add to my purchase price. they even tried to extend my loan for another 12 months to lower my monthly payment by $22. They thought I was being an ass about accepting it. A young 1st time 2024 Mustang buyer (who doesn't have a great credit score) will probably spend another 20k in interest during the life of their loan or try to piggyback the balance on a new loan if they want to trade it in on another new Mustang.

 

[Bikeman315]

Since a new S650 GT is going to sell north of $45K, how many years will it take for a new (new before) Mustang buyer to afford to finance this car

Start by punching in some numbers.
auto-loan-calculator
So with a monthly payment of $687.00 your monthly take home pay should be no less than $5500 a month (approx 15%). So if you are taking home $66,000 a year then you can possible afford to buy a $45,000 car. Just realize there are many variables to this but at least it's an idea.

and will the car hold up that long?

Absolutely. I would recommend an extended Ford warranty (ESP) if you are not a risk taker.

 

[Q6543]

OP... I'm expecting a lightly optioned GT to come in at the high 30s... say 38.5k



Like said, we'll know when the banks open.

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