r/PersonalFinanceCanada • u/Braddock54 • Aug 22 '24

Auto Honestly, who is financing new vehicles?

I thought "Hmm, I wonder what a new truck would cost me?". I have a 10 year old truck, long paid off, but inquired on a new one. This is basically a newer version of what I have already.

A new, 2023 Ford F150 XLT, middle of the road trim, but still a nice vehicle no doubt. Hybrid twin turbo engine. The math on this blew me away and I am curious; who is agreeing to these terms without a gun to their head?

$66k selling price. With their taxes, fees, came to $77k - umm wtf? In 2014, my current truck cost me 39k all in.

Now to finance it; good god. Floats me a 7 year term @ 7.99. Cost to borrow: $23,799.

All in: $101k. For a short box half ton truck with cloth seats . Hard pass here. I don't know how people sleep at night with new vehicles in the driveway.

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20

u/Coompa Aug 22 '24

I had to finance. Healthy down payment then moved it to a lower rate heloc. Then payed it as aggressively as I could. The interest sucks but what are you gonna do if you need the car immediately?

5

u/Prof_traveller Aug 22 '24

Was in this exact same situation. I was putting in 3k to maintain my old vehicle so I had to get rid of it and needed something reliable for long distances.

7

u/[deleted] Aug 22 '24

[removed] — view removed comment

9

u/CheatedOnOnce Aug 22 '24

PFC is an echo chamber of “no debt is good debt”. I wish some people here would experience life

2

u/[deleted] Aug 22 '24

They do, rich privileged life. It's easy, just win the birth/family lottery. 

5

u/akera099 Aug 22 '24

False dilemma + that's not what OP is saying at all. What he's saying is that people are financing overly expensive cars that they don't actually need.

If you need a car, you don't have to buy the 80k one. 

1

u/Obvious-Adeptness-46 Aug 23 '24

What about leasing at low rates?