Ford financing nightmare?

[Rfehl62]

1.4% is only for GTs?

I pulled a Fresno zip and you are correct. CA gets $2,500 and 2.49%. Same rule still applies though.

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[JerryL]

They already took advantage of you by 8K over MSRP.

 

[Neil4Real]

I have no idea what you are implying?

I stated clearly that you should NOT buy gap insurance.

In fact, I went out of my way to suggest quite the opposite.

Reading is fundamental.

I'm CLEARLY stating that he should buy GAP because he has an ADM but you're saying don't get GAP because that means you can't afford the car. What

 

[DennisD]

Thank you for your advise. I can afford the car. I can afford the $8,000 ADM. I just don't like being taken advantage of, which is what happened here. I'm working on fixing that by at least getting rid of the extended warranty and GAP coverage.

Not sure if I can "give the car back" as I've already signed the contract. Which I'm working with the GM to get cancelled and get put on a Ford Options contract. A peculiar situation...

By the way. I still own the '09 Camry I bought used with cash in 2013 from Vegas poker tournament winnings. Been there, done that.

You are paying around $5,500 in interest along with paying $8,000 in ADM charges.
You are essentially paying $13,500 in "extra" fees. And that is w/o the GAP and Extended Coverage?

I would definitely take the car back if you can.

This is crazy money to throw away.

 

[Neil4Real]

Thank you for your advise. I can afford the car. I can afford the $8,000 ADM. I just don't like being taken advantage of, which is what happened here. I'm working on fixing that by at least getting rid of the extended warranty and GAP coverage.

Not sure if I can "give the car back" as I've already signed the contract. Which I'm working with the GM to get cancelled and get put on a Ford Options contract. A peculiar situation...

By the way. I still own the '09 Camry I bought used with cash in 2013 from Vegas poker tournament winnings. Been there, done that.

I just hope they can cancel it... I think it is too late though. I wanted to bring my car back because of the IPC buzzing and the dealer was actually understanding. I had a Ford guy help me get it at MSRP so I didn't deal with the normal "shadiness" I guess you can say. He checked and said it has already been released to Ford credit and it is super hard to untangle it once that's happened. If they still had the paperwork, like I had told them the next morning, they could have undone it.

 

[DennisD]

I'm CLEARLY stating that he should buy GAP because he has an ADM but you're saying don't get GAP because that means you can't afford the car. What

And I am saying that when you feel compelled to buy GAP Insurance, that basically means that you can't afford to purchase the car.

Buy something you can afford to lose.

Why give it all away to Insurance Companies?

 

[Neil4Real]

And I am saying that when you feel compelled to buy GAP Insurance, that basically means that you can't afford to purchase the car.

Buy something you can afford to lose.

Why give it all away to Insurance Companies?

Because the interest rates are so low and you can put that cash in the market to make more than the 2% rate you're paying so you shouldn't do a hefty down payment and can get GAP for very cheap. That's like people that put 50% down on a mortgage when rates are in the 3%. You can easily beat that and should put 20% down and the rest in the market to earn way over 3%.

 

[Gixxer750]

And I am saying that when you feel compelled to buy GAP Insurance, that basically means that you can't afford to purchase the car.

Buy something you can afford to lose.

Why give it all away to Insurance Companies?

It's not about what you can and can't afford. It's about risk management. It is a $400 charge that can save possibly thousands in out of pocket. The trick is to monitor value of car vs. the remaining loan amount. The moment they are equal, cancel it and get some of your money back.

To the OP, food for thought, a 3.49% interest rate with no extended warranty and GAP is about $3k cheaper than the 2.49% with. Slow down, do the math and don't let these guys push you around. Good luck!

 

[DennisD]

Because the interest rates are so low and you can put that cash in the market to make more than the 2% rate you're paying so you shouldn't do a hefty down payment and can get GAP for very cheap. That's like people that put 50% down on a mortgage when rates are in the 3%. You can easily beat that and should put 20% down and the rest in the market to earn way over 3%.

https://www.marketwatch.com/story/g...-superbubble-says-jeremy-grantham-11642723516

And what do you do if the market crashes?

If you tie up your money on an excessive car loan and the stock market makes a correction, anything you purchase there after would be possibly charged at a much higher interest rate with little money down going forward.

A car isn't typically a "good" investment. If you are borrowing money for a car that you need GAP insurance for, you can't really afford it ESPECIALLY if things go south.

I lived through the high interest rates of the late 70's/early 80's and felt the pain of the 07/08 crash.

Things don't always go up my friend.

 

[DennisD]

It's not about what you can and can't afford. It's about risk management. It is a $400 charge that can save possibly thousands in out of pocket. The trick is to monitor value of car vs. the remaining loan amount. The moment they are equal, cancel it and get some of your money back.

To the OP, food for thought, a 3.49% interest rate with no extended warranty and GAP is about $3k cheaper than the 2.49% with. Slow down, do the math and don't let these guys push you around. Good luck!

When you purchase GAP insurance, you will be guaranteed to lose $400.

If you purchase a car that doesn't need GAP insurance, you will be guaranteed to not lose $400.

Once again, purchase a car that you can afford and not pay the extra's to the insurance companies.

This is economics 101.

 

[Neil4Real]

https://www.marketwatch.com/story/g...-superbubble-says-jeremy-grantham-11642723516

And what do you do if the market crashes?

If you tie up your money on an excessive car loan and the stock market makes a correction, anything you purchase there after would be possibly charged at a much higher interest rate with little money down going forward.

A car isn't typically a "good" investment. If you are borrowing money for a car that you need GAP insurance for, you can't really afford it ESPECIALLY if things go south.

I lived through the high interest rates of the late 70's/early 80's and felt the pain of the 07/08 crash.

Things don't always go up my friend.

This is a pointless debate. The market recovers, especially if you're just putting it in index funds. If you rode out 07/08 your portfolio should have skyrocketed by now. Even if you had a stock in a company that did go belly up, your diversified portfolio should have surely covered that loss and more many times over. Also, I can find a million articles about us being on the brink of the "bubble bursting" for the last 5 years lol.

 

[Gixxer750]

When you purchase GAP insurance, you will be guaranteed to lose $400.

If you purchase a car that doesn't need GAP insurance, you will be guaranteed to not lose $400.

Once again, purchase a car that you can afford and not pay the extra's to the insurance companies.

This is economics 101.

Alright, so what you're saying by "can afford" is to buy a car with enough down payment so that the loan value of the vehicle will be below the market value of the vehicle from the get go. Therefore no GAP needed.

Or are you saying you should be able to buy the vehicle outright? That's a different discussion.

To use stock market terms, if you're holding large positions during volatile markets, you would be stupid not to buy some put options to hedge against a rapid drop. Again, risk management.

 

[DennisD]

Alright, so what you're saying by "can afford" is to buy a car with enough down payment so that the loan value of the vehicle will be below the market value of the vehicle from the get go. Therefore no GAP needed.

Or are you saying you should be able to buy the vehicle outright? That's a different discussion.

To use stock market terms, if you're holding large positions during volatile markets, you would be stupid not to buy some put options to hedge against a rapid drop. Again, risk management.

Most people would not be able to purchase a car "outright".

With that being said, it is crazy to invest in something that would need GAP insurance. You are essentially guaranteeing to spend more out of pocket money for a car and giving part of it away to the Insurance Company.

If you are speaking of risks, why would you "invest" in a car when you could invest in the stock market.

Like you said, the stock market would recover. Cars don't.

If the stock market goes down, you don't need to contribute anymore money (if you choose not to) to said stock. If you have a car loan, you have no choice to keep paying monthly.
BTW, when the stock market crashes, that is when I up the payment to said stocks. (on sale if you will)

If you add GAP insurance to the equation for a car loan, you will be still writing checks (for a possible longer time if your car depreciates more) for the coming months.

THAT IS THE DIFFERENCE

I own allot of stock and I contribute much more to the stock market (realizing that it is volatile) than I do with cars and GAP insurance.

There are smart risks and stupid risks.

 

[DennisD]

This is a pointless debate. The market recovers, especially if you're just putting it in index funds. If you rode out 07/08 your portfolio should have skyrocketed by now. Even if you had a stock in a company that did go belly up, your diversified portfolio should have surely covered that loss and more many times over. Also, I can find a million articles about us being on the brink of the "bubble bursting" for the last 5 years lol.

Can you ride out a car loan?

 

[Logal727]

Damn I thought my dealer was tricky.

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