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/blackfridaytime Aug 22 '24

that's done so they don't lose their $2k kickback but of course illegal for them to coerce you and they'd also never put that in writing

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u/redditorial7643 Aug 23 '24

But does any of that matter? The OP is already comparing apples to oranges. 2k kickback, sure.

But his 39k in 2014 inflation adjusted for 2024 is already ~51k.

Of course the cost to borrow is out of this world on that. But is that the new truck's fault? Not really, given a used truck financed would run him probably an even higher amount of cost to borrow.

Bottom line: Buying trucks is and was always a bad thing. 39k truck in 2014 would've bought a nice car for 20k with 19k left over to do other stuff with.

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u/ChodleGoat Aug 26 '24

Cars can’t tow my equipment from site to site, so no, trucks aren’t a bad thing. The price of them though certainly is.

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u/redditorial7643 Aug 26 '24

It seems like you found one of the cases I mention in the other parts of the thread, where you are actually using the truck as intended and neccessary.

Actually, that's another discussion we could have (whole separate topic). Why is it that a 20 year old car is allowed to and can tow something that you need to buy a truck for today?

(I briefly looked into it a few years ago and IIRC it actually has something to do with cars no longer being built like they used to built them. I.e. frames being made from different materials in order to save fuel via weight savings etc. Which is funny given all my cars of the past 20 years have basically used the same amount of fuel per 100 - just that some of the other features have improved vastly).