Tempted

[RaftingDave]

Completely agree, I want to keep this truck.
Mind you I did accept 8 years but I didn’t that to keep my payments lower, as this is an open term loan I have the ability to pay it off quicker at my own pace which I plan on doing, so realistically I plan on paying it off within 4-6 years pending. I also have my money ******* in another purchase of real estate so the saving on lower payments sacrificing longer term keeps liquid cash in my pocket.

Thanks for the advice.


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Every car loan allows you to pay it off early without penalty - it's the law, at here in the States.

Anyway, bud - enjoy the new ride, and ya better share some pics with us when you get it home.

 

[Jrod]

If the numbers are correct, they are actually charging you $40700. The numbers will be in their breakdown when you reach the finance office. I’m guessing tax etc.

So the break down is:
15,250 for MFG
and 6,022
With an additional 750$ off to get the truck off their lot (guy wanted to meet bonus dead line?)
Almost 22 grand off

After couple days of negotiating he actually knocked the price down to 220$ bi weekly and threw in mudflaps and steps.
Not bad for a CC 19 hemi.


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[1stindoor]

My biggest hang up on this is the 8 yr note. Even if you're the type to keep a truck for a long period of time (and I'm not...but I do break 100k with almost every one), 8 years of making a payment every two weeks is an incredibly long time. For me, I'm getting the itch around the 4 year mark, trucks already near 100k. At 5 years I've already done about 6 mos of research into every "contender" and all the options and started to look online for deals.

 

[huntergreen]

Hey all,

I’m looking for opinions on this matter as I want to see if the decision I’m about to make is worthwhile. I’m looking at buying a new truck. I understand a newer vehicle is a depreciating asset, and if I didn’t get such a good deal I wouldn’t be looking twice.
2019 Crew cab Ram 1500 Warlock, fully loaded but doesn’t include (remote starter, or Bedliner) other then that has every option i want,
MSRP of this truck is a whopping 62,000$
I’m getting this truck for 39,000 that’s a crazy 23,000 off suggested price, based on an 8 year-2.99 percent interest rate.
5k down
Payments are 225$ bi weekly.

Basically the worry of buying a vehicle that expensive would be how much money lost on the 62,000 right off the lot but with that 23,000 off how can I not? I can realistically (if I wanted) resell this truck in a few years still get my money back?
Good deal?


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8 years is too long for an auto loan. That alone says it is not a good deal.

 

[BigBd94]

My biggest hang up on this is the 8 yr note. Even if you're the type to keep a truck for a long period of time (and I'm not...but I do break 100k with almost every one), 8 years of making a payment every two weeks is an incredibly long time. For me, I'm getting the itch around the 4 year mark, trucks already near 100k. At 5 years I've already done about 6 mos of research into every "contender" and all the options and started to look online for deals.

Even if it is true that I have an itch after 5 years of ownership, as a 62,000$ MSRP truck selling for 39,000 that in itself is huge I don’t have to worry about losing that 10-15% right off the lot, as the warlock trim is new let’s price it next to a little brother of the Rebel, exterior wise it is, the warlock I’m getting is fully loaded without the leather, a 2015 rebel used at 60k miles goes for 30,000$.
In my case I think at the 5 year point I’ll reach a point where my loan can produce an even or positive value. If anything it wouldn’t be a huge hit if I don’t already have the truck paid off by then of course.


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[BigBd94]

8 years is too long for an auto loan. That alone says it is not a good deal.

It sounds bad but if you factor in 0% interest and paying it off quicker then it’s not bad.

I get bonuses through work so it gives me the opportunity to save each bonus every three months and pay a large sum every so often.


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[BigBd94]

If the numbers are correct, they are actually charging you $40700. The numbers will be in their breakdown when you reach the finance office. I’m guessing tax etc.

View attachment 188683

This is correct that’s actually what it is listed at online, but they are taking additional off the truck AND also 0% interest not the 2.99


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[Jrod]

This is correct that’s actually what it is listed at online, but they are taking additional off the truck AND also 0% interest not the 2.99


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Interesting, because at 0% $220 bi weekly for 8 years you’ll be paying just over $45700 for the truck. They are working you through affordable payments, by increasing the length of the loan, to make their target number.

 

[huntergreen]

It sounds bad but if you factor in 0% interest and paying it off quicker then it’s not bad.

I get bonuses through work so it gives me the opportunity to save each bonus every three months and pay a large sum every so often.


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Put those bonus checks in your IRA.

 

[phantomfixer]

8 years from now and still paying on the same truck?...don't put yourself in that position

 

[ListenOverSpeakin]

Your finance FRIENDS are absolutely correct. Show them a copy of the agreement. An 8yr car loan is a no go. I’d try to work off of a 5-6 yr loan at the most. You’ll be upside down for majority of the loan. Why pay additional in principle to make up for unfavorable loan terms that you don’t have to agree to? I’d assume that if they’re willing to sell it for 39k that that’s prob close to what it’s worth. Shop around for better loan terms or find a similar truck else where now that you have a price to work off of.

No you can’t take money to the grave. That’s not the point. The point is to have enough to comfortably make it to the grave and spoil the grandkids, great grandkids if you’re lucky, along the way.

Just my shiny two cents. No judgement here.


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[Ohio5pt7]

8 years from now and still paying on the same truck?...don't put yourself in that position

I second this only 32 but bought my 1st new car on my own @ 21 did 8 years to have that low payment. 3 years in decided hey I make a lot more money now I want this car and I lost my a55 because those first couple years all your doing is paying the bank.

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[Wayne E]

Everyone has their own situation. You have to do what is best for you, not anyone else. Only you know if you can do 8 years. To me it sounds like you got a great deal by not taking the 1st, 2nd or even 3rd offer. You got 0% over that 8 years, which is HUGE. I'd personally rather make lower payments longer and have cash available for other things as well, like mods and toys. Great job and congrats!!!!

 

[Byron Stallman]

Cash is king! I love owning my truck! No debt for us!

 

[Wayne E]

Cash is king! I love owning my truck! No debt for us!

Absolutely. We all wish we could pay cash for a new truck but most can't pay cash for a new, or even a used truck. Everyone has a different situation. Gotta do what's best for your situation

 

[Jrod]

Absolutely. We all wish we could pay cash for a new truck but most can't pay cash for a new, or even a used truck. Everyone has a different situation. Gotta do what's best for your situation

Completely agree, unfortunately the OP is being told one amount, but the payments on his 8 year 0% loan reflect a much larger amount, minus tax, tag, title, and whatever else you guys do in Canada.

 

[hammy56]

8 years is a long time, but its the bi-weekly payments that has me scratching my head...

For me its simple math. I bought my truck with a 7 year term. Just to keep the payments as low as possible. Because Im self employed- so in case I have a slow month here or there...But most months I send in extra- usually at least 20 bucks, sometimes 50. So it'll likely be paid off a year earlier, maybe more.

But whats important for me, is that at the end of the term, it'll still have low miles (125K at this rate) and it'll be paid for, and still worth decent money.

If you plan on keeping the truck its all good, but if you plan to get rid of it in a few years, you might not make out...

 

[BigBd94]

8 years is a long time, but its the bi-weekly payments that has me scratching my head...

For me its simple math. I bought my truck with a 7 year term. Just to keep the payments as low as possible. Because Im self employed- so in case I have a slow month here or there...But most months I send in extra- usually at least 20 bucks, sometimes 50. So it'll likely be paid off a year earlier, maybe more.

But whats important for me, is that at the end of the term, it'll still have low miles (125K at this rate) and it'll be paid for, and still worth decent money.

If you plan on keeping the truck its all good, but if you plan to get rid of it in a few years, you might not make out...

Completely logical, I drive 12-14000 kms a year, the I have 3 rentals and I work in construction as a rigging inspector so sometimes I have to drive to site with a truck (kms paid for) I have a Rottweiler who’s 110 pounds and my cobalt isn’t cutting it, I also have a quad to load up in summer times on top of a 21 foot trailer I would tow, for 448 per month for a brand new rig is worth it. I got a lot of mechanic buddies who are in absolute shock with the price. I’ve always wanted a truck, so I’m happy to say as of next Friday she will be in my possession.

Thanks all for advice and comments I definitely rethought the 8 year term, but at 0% and the plan on keeping this vehicle with low payments for what I’m getting is worth it.
Cheers.


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[turboguard]

I like to think of it this way...I'm basically paying a 30 year loan for my house, so 7 or 8 years for a great vehicle doesn't seem too bad by comparison.

 

[HemiTO]

This is correct that’s actually what it is listed at online, but they are taking additional off the truck AND also 0% interest not the 2.99

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If it's truly 0% interest then it doesn't matter how long you take to pay off the truck because the borrowed money is free. You're better off using YOUR money to pay other bills, such as mortgage or credit cards, where you are paying interest.