I got A-plan. I doubt I could have gotten it cheaper, but thanks for the info.

 

You registered just so you could post that?

Me thinks you might have a double identity

But to address your misconceptions, if consumers didn't charge everything up and pay high interest rates they would have far more nice things (just not as soon). And they would also have more investment capital which is what spawns innovation.

So I strongly disagree with your implication that consumer debt spawns innovation. Quite the opposite actually.

 

I was under the impression that the factory incentives were deducted after the x-plan price and that it was generally a choice between 0% financing OR $1500 cash back (or whatever). In other words, when you accept 0% financing, you give up another incentive.

Is that not how A-plan pricing works as well?

If so, it's not free money.

 

Think of it this way.

Not many people can afford to buy a new F150 in cash. So they finance.

Now say there is no such thing as financing. Ford doesn't sell the same amount of F150s. In fact, the amount of F150s they sell is so much less than they would sell if people could finance, they see no need to spend money on R&D. The F150 doesn't change much from the truck it was in the 90s.

 

Your definately not out of line. Go as low as you can go, I just went through the same thing. The dealer is always going to make money so dont think your asking to much from them.

 

My recommendation assumes that people buy a less expensive vehicle with cash and save/invest the money they would have been making on payments/interest. With wise cash management it won't be too many years before they can buy new with cash and avoid the finance charges. Wealth is not built by extending your credit to the max for things you think you need NOW.

Are you saying that only buying things you can afford with money you already have is a bad idea? I thought it was common sense.

Keep in mind I DO believe in borrowing to finance assets that tend to appreciate over time. Trucks for personal use DO NOT fall into that category.

 

Rebates are deducted from both a-plan and x-plan prices.

 

OK, that's what I thought. But I still don't see how 0% financing is "free money" because generally you have to choose between 0% financing or cash back, right? If you take the 0% financing you forgo the $1500 (or whatever it happens to be at the time) cash back. So, the 0% financing costs actual money.

 

its not free money really, its just money you dont have to spend so i guess its savings, right. 0% is great if there arent any rebates or a low number 1-3k
but any thing over 4000 on a 20k loan take the rebates, thats just off the top of my head, it also depends on cash down term etc 50k 60 months 0% all the way

 

$39K for a $52K MSRP Expy EL Ltd at 0% for 60mos. Just makes sense... You get to keep your cash and invest or save, earning interest rather than putting it all in an asset that doesn't gain value overtime. You are using the banks money for nothing and every payment you make goes toward principle... Not sure why one would turn that down...

 

I agree. If you're taking out a 7%, 48 month loan on a $25,000 vehicle, you pay almost $4000 just for the privilege of using the bank's money. Do a couple of rounds of buying something cheaper and "making payments to yourself" and you'll be able to pay cash. You save the interest charges, plus it tends to make you more cognizant on what you spend. It's relatively easy to be talked into going from say, $500 a month to $550 a month, but when you have to open the checkbook and write a check for $30,000 - you really question whether you 'need' the new truck.

Dave Ramsey has a good overview here:

http://www.daveramsey.com/article/drive-free/

He's very optimistic on the return you can expect on your investment, but the concept of buying less than you can afford and saving is spot on and should be mandatory viewing before anyone is allowed to take out a loan.

That said, I did finance my 2010 simply to get the Ford Credit rebate.

 

Where did I say this? I totally agree with this statement. But financing is not the worst thing in the world.

 

Buying at invoice is not bad for the dealer. They still get the hold back and whatever "dealer money" may be available at the time, especially if you are buying something Ford, or any OEM, wants to sell many of and fast. A reputable dealer will look for the cheapest financing if your credit score is good. On my last two purchases were through the dealer's finance department, but the loans came from my bank at some really good rates.

 

the dealer was probably eager to go to invoice for you because you had great credit and you qualifiyed for a real low rate, so they were able to get the call low enough to hold a point or two on the back end, i bet you got life and gap and an esp for a really good deal too didnt you...

 

That's why you get a X-Plan PIN and your own financing. Then they cant bend you over.