Truck Financing

[Mikes91]

I'm looking for a bit of guidance here...

Have most folks here pretty much just absorbed the high payments on their truck, or did most put down a large downpayment? I'm very tempted to purchase, but am having a case of the doubts now that I understand what that payment looks like... and for how long I might have that payment.

Maybe it isn't really a big deal... it just seems like a vehicle payment of $450-$500/month for 7 years is absurd. Could pay the truck off earlier, most likely, but haven't been saving money (instead I've been fixing up an older truck that I should have just sold).

Lessons learned...

 

[Whit]

Put down what ya can and bite the bullet, take a chance..................Columbus did now look at the mess we are in

 

[killer]

I made a downpayment of -$9K on my truck.

I leased my previous truck, drove it for 9 months and realized it wasn't going to see the end of the lease. I traded it in, and the dealer bought it out. The difference between what I owed and what it was worth was about $9K. It made perfect sense at the time, because to buy enough kilometers on my lease would have been about the same amount.

Under normal circumstances, I don't think I would put anything down. I'd go 0 down, and probably over 3 years (I'm over 4 now with this truck). It probably doesn't make any difference which way you go, you're going to spend that money sometime, but that's how I would do it.

 

[Mikes91]

Whew... lordie. Wish they had 10 year financing and trucks that'd last that long...

 

[DmaxEter]

I saved up when I was 19 and bought my F350. Put $10,000 down on it and rode it until a few months ago and sold it. I put $14,000 down on the goat and thats how I did mine. Put as much down as possible. If these trucks didnt have any resale value then I would sayn save your down payment and just buy it.

 

[haz-mat19]

Try and get it around 450 and pay 500, the extra will go straight to principal. Thats what I did and it takes the principal down quick. Make sure the load does not have a early pay off penilty. What ever exta you can put down every month will get it payed off faster. I only put down 4k. Good luck see ya

 

[Mikes91]

Try and get it around 450 and pay 500, the extra will go straight to principal. Thats what I did and it takes the principal down qwick. Make sure the load does not have a early pay off penilty. What ever exta you can put down every month will get it payed off faster. I only put down 4k. Good luck see ya

Thank you. Sounds like the best advice given our particular situation.

Looking forward to ordering in another couple months (waiting for my '91 to sell and taxes to come back)...

 

[Doggy Daddy]

Try and get it around 450 and pay 500, the extra will go straight to principal.

I agree! As long as you can get a decent rate I would finance it as long as possible and keep the payments as low as possible. If you apply for a mortgage they will look at your monthly obligation and use that to determine how much of a loan you will qualify for. Big payments and paying it off sooner is great... unless in a year you decide to buy real estate and have to sell your truck to qualify for the house you want.

 

[haz-mat19]

Glad I could help . Good luck, t will come down faster then you think. See ya

 

[Mikes91]

I agree! As long as you can get a decent rate I would finance it as long as possible and keep the payments as low as possible. If you apply for a mortgage they will look at your monthly obligation and use that to determine how much of a loan you will qualify for. Big payments and paying it off sooner is great... unless in a year you decide to buy real estate and have to sell your truck to qualify for the house you want.

Thank you for the tip... probably applicable.

 

[NJKen]

Usually the shorter the loan term the lower the interest rate. The quicker you can pay it off the better. The bigger the down payment the lower the monthly payment (Duh!) ! When I purchased my 02 I chose the 3 year plan (OUCH 707.69 a month) and put down 15K. On the good side I own my truck title in hand. On the bad side I almost died making those payments! The last year of payments was when I was geing divorced and that hurt like hell so think about the future as much as you can
Best of Luck
Ken

 

[Mikes91]

Usually the shorter the loan term the lower the interest rate. The quicker you can pay it off the better. The bigger the down payment the lower the monthly payment (Duh!) ! When I purchased my 02 I chose the 3 year plan (OUCH 707.69 a month) and put down 15K. On the good side I own my truck title in hand. On the bad side I almost died making those payments! The last year of payments was when I was geing divorced and that hurt like hell so think about the future as much as you can
Best of Luck
Ken

2 more kids, no more horses, and (hopefully) 1 or 2 promotions... SO... breaking even, maybe.

Now is probably as good a time to order as I'm going to see in the next 10 years.

 

[MIDNIGHT RIDER]

Don't forget the full coverage insurance, property taxes, sales taxes, etc. in your financial plan.

I same as bought a new truck straight out; but changed my mind when I priced insurance; and I have a clean driving record.

Turned around and spent a couple thousand on the old truck and don't owe nobody a dime.

 

[BMF]

First new truck I bought was $650 a month for 5 years. I kept it three and half years and when I traded I owed 11K and got 19K for the truck. That's 8 grand toward the new truck. New truck payment is $475 a month for 5 years.
I bought several used trucks before I bit the bullet and bought a new one that I knew I could keep for several years without any trouble. I think the trick with trucks is not to trade too often and not to finance them too long. Then again if you keep one too long you can end up loosing too.

 

[NJKen]

Don't forget the full coverage insurance, property taxes, sales taxes, etc. in your financial plan.

I same as bought a new truck straight out; but changed my mind when I priced insurance; and I have a clean driving record.

Turned around and spent a couple thousand on the old truck and don't owe nobody a dime.

Thats a good point. Fortunatly for me it only made a $100 a year difference but some in some states you are really going to get cleaned out.
Ken