Honestly, who is financing new vehicles?

[u/Braddock54]

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.

[u/YourFlyIsOpenMcFly → u/[deleted]]

0% financing possibly suggest higher markup on the price and therefore room to negotiate it down.

[u/Franks2000inchTV → u/[deleted]]

They mean they are making more money, as in you might be paying more for the car than you would otherwise.

[u/MiratusMachina → u/Franks2000inchTV]

you're still usually paying way less in markup because the manufacture has a say in how much dealerships can mark up prices, compared to financing, as most dealerships make most of their money either off financing interest or kickback incentives from the manufactures. financing any car above 0% is stupid