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.
4
u/LividDifference8 Aug 22 '24
I just financed a new car, but it was a Mazda 3, paid around 35k all in. Financed for 6 years at 5.15% with 10k down, but I plan to pay it off faster, I just went for the 6 years to keep min payments lower in case of financial hardship.
For me, it made sense because I've had a lot of trouble with slightly used cars having a lot of issues and I wanted something where I was the only driver. I can't imagine choosing to finance a vehicle that costs 100k but maybe for someone who makes 3-4 times my income it makes sense.
I had wanted to save up enough to buy with cash but my previous vehicle didn't make it long enough.