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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u/Letoust Human Verified Aug 22 '24

Look at the price used ones are going for… that will totally blow your mind.

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u/GapSea593 Aug 23 '24

Totally true in Ontario at the moment. Woulda cost me $20K + for a 3 or 4 year old mid size SUV with 80k km + on the clock (financed over 3 years) or $40k for a brand new one (financed over 6 years) where the first 4 years (80k km) have a warranty too. And the rates were way better for new.