How much down to order a 2015? - Ford Mustang Forum
 
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post #1 of 12 (permalink) Old 07-13-2014 Thread Starter
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How much down to order a 2015?

I will be trading in my 2013 Focus, which I am upside down on, but I am curious as to how much I need to place an order?

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post #2 of 12 (permalink) Old 07-13-2014
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In my area dealers usually require a $500 non refundable deposit. Being upside down should not emter the picture on the trade unless you are thinking of putting the deficit in the new loan, which is never a good idea. The trade in & the sale of the new car should be two seperate transactions. The dealer will be more than happy to shove you further under water if the bank/finance company will allow them. This is just my, based on my history. YMMV, but not by much


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post #3 of 12 (permalink) Old 07-13-2014 Thread Starter
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Originally Posted by kenv View Post
In my area dealers usually require a $500 non refundable deposit. Being upside down should not emter the picture on the trade unless you are thinking of putting the deficit in the new loan, which is never a good idea. The trade in & the sale of the new car should be two seperate transactions. The dealer will be more than happy to shove you further under water if the bank/finance company will allow them. This is just my, based on my history. YMMV, but not by much
I will be rolling it in at this point I don't care. I can get a 1.99% 84 month Lian from my credit union. I just want the car too damn much
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post #4 of 12 (permalink) Old 07-13-2014
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I will be rolling it in at this point I don't care. I can get a 1.99% 84 month Lian from my credit union. I just want the car too damn much
On an 84 month loan, you will be upside down for at least 5 years on the Mustang.

As a stockbroker / financial adviser for the past 30 years, my advice to my clients is that if you cannot afford the payment for a car on a 36 month loan, you cannot really afford to buy that car (and should really consider something cheaper).

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post #5 of 12 (permalink) Old 07-13-2014 Thread Starter
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Originally Posted by MikeNSX View Post
On an 84 month loan, you will be upside down for at least 5 years on the Mustang.

As a stockbroker / financial adviser for the past 30 years, my advice to my clients is that if you cannot afford the payment for a car on a 36 month loan, you cannot really afford to buy that car (and should really consider something cheaper).
Luckily I didn't come here seeking financial planning advice, but thank you anyways
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post #6 of 12 (permalink) Old 07-13-2014
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Luckily I didn't come here seeking financial planning advice, but thank you anyways
If you're upside down on a Focus, perhaps you should be.

Always best to pay cash for a depreciating asset (like a new car)...if not, be able to pay off said car in 3 to 4 years max. Anything over 3 to 4 years means you will always be upside down (unless a large down payment is made on the front end).

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post #7 of 12 (permalink) Old 07-13-2014
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Quote:
Originally Posted by MikeNSX View Post
On an 84 month loan, you will be upside down for at least 5 years on the Mustang.

As a stockbroker / financial adviser for the past 30 years, my advice to my clients is that if you cannot afford the payment for a car on a 36 month loan, you cannot really afford to buy that car (and should really consider something cheaper).
Mike, you obviously know your stuff. This is good advice. Now personally I didn't follow it, but I absolutely agree in principle. I have a loan on my vehicle, but the car is worth more than I owe because I put a good chunk down. At any point, and for whatever reason (if I see fit), I can trade in my car and be in an equity position. I figured my cash was better spent investing when I can earn more than I am paying in interest. And I am a car guy and had to have it.

And on that note, OP, I have a small suggestion/question. Can you wait a year or two? If you waited for, say, the 2017 Mustang, you won't be upside down on the Focus (I would imagine). Ford will up the horsepower of the car by then (again, I imagine), and you'll have the latest/greatest Mustang with a good three years where it'll be the current generation body style. In addition, it gives Ford time to work out the kinks. Finally, you will get a MUCH better deal as it won't be the hottest new car release.

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post #8 of 12 (permalink) Old 07-14-2014
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Quote:
Originally Posted by MikeNSX View Post
On an 84 month loan, you will be upside down for at least 5 years on the Mustang.

As a stockbroker / financial adviser for the past 30 years, my advice to my clients is that if you cannot afford the payment for a car on a 36 month loan, you cannot really afford to buy that car (and should really consider something cheaper).
Quote:
Originally Posted by tommy9946 View Post
Mike, you obviously know your stuff. This is good advice. Now personally I didn't follow it, but I absolutely agree in principle. I have a loan on my vehicle, but the car is worth more than I owe because I put a good chunk down. At any point, and for whatever reason (if I see fit), I can trade in my car and be in an equity position. I figured my cash was better spent investing when I can earn more than I am paying in interest. And I am a car guy and had to have it.

And on that note, OP, I have a small suggestion/question. Can you wait a year or two? If you waited for, say, the 2017 Mustang, you won't be upside down on the Focus (I would imagine). Ford will up the horsepower of the car by then (again, I imagine), and you'll have the latest/greatest Mustang with a good three years where it'll be the current generation body style. In addition, it gives Ford time to work out the kinks. Finally, you will get a MUCH better deal as it won't be the hottest new car release.
I, too, absolutely agree in principle, and if I were only going to be getting 1 car, I would have done just as Mike suggested.

But the plan was to get 2, so I had to weigh not eating versus the fact that we weren't planning to offload either car before they were paid off, and we went ahead and financed them for 6.

What I did do, however, was lay a big down payment on the first one, then waited 2 years so that I could scrape together a decent, though not as good, down payment on the second one.

What does make me scratch my head, though, are the people who have to have a new ride every 2 to 3 years and take out 72 and 84 month notes knowing full well they aren't going to keep the car any more than 30-36 months max. They are always chasing the interest and never build any equity in the car while constantly getting pummeled by the depreciation of each subsequent car.

OP, Tommy's suggestion in the second paragraph of his post is spot on.

Back in 2005 I was in your very position. I had just bought a 2004 F150 Lariat edition the year before and then the all new S197 Mustang snuck up on me. I wanted one in the worst way, especially after my little brother bought a 2006 GT Premium in September of 05. I probably could have pulled it off, but it would have left me horribly upside down. My dad, my brothers, and my wife talked me out of it, and as you can see, it worked out in the end.

If you absolutely have to do it, then go with the largest down payment you can stand-the more you can pay now, the less you have to finance, though the answer to your question is that the dealer will only require a $500 security deposit that Ken mentioned above. Your finance company may require a down payment of some amount, then again, they may not.


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post #9 of 12 (permalink) Old 07-19-2014
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Quote:
Originally Posted by MikeNSX View Post
On an 84 month loan, you will be upside down for at least 5 years on the Mustang.

As a stockbroker / financial adviser for the past 30 years, my advice to my clients is that if you cannot afford the payment for a car on a 36 month loan, you cannot really afford to buy that car (and should really consider something cheaper).
This. Always be in a position to save money.
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Let's give OP benefit of doubt on knowing his own financial situation and doing what's best. For example we don't know the og rate on his current car loan so rolling the remaining portion of that loan into a new loan at 1.99% maybe beneficial, assuming that rate is lower.

That said I agree with a couple things, 1. an 84 month loan is ONLY worth it if you plan to keep the car forever, YOU WILL BE UPSIDE DOWN, and like others said, for a while. 2. Anyone who thinks paying cash for a depreciating asset is a good thing doesn't understand how money works. 3 Ford ALWAYS discounts cars at the end of the MY so their cars do tend to depreciate a lot.

To answer your og question, my dealer here accepts 1000 refundable deposit up to the time the car starts being built, then it becomes nonrefundable. If I were you, I'd wait until the end of the MY when Ford is trying to offload for 2016. Then you may be able to get in on the 0% 60month. That's like free money!!!!

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I have had Mike's advice gnawing at the back of my head. Looks like we will be able to save enough to get the 36-month payment down to a realistic level. I told the CU I wanted a 48-month loan (which I will pay off before 36 months) and they looked at me like I was from Mars. I guess everyone takes 60, 72 or 84 months these days. I just can't bring myself to do that.

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My dealer did not require any deposit from me for my order

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