So..

I'm 28 and have 5 months left on my current car lease. Prior to that I was driving a 2000 F150 from the day I got my license till the wheels fell off. Once that happened, I decided to try the "car" life and did a 36 month lease on a BMW 3 series.

Now, I'm ready to get back into the truck game. I'm in Houston so the two dealerships I've window shopped have been Tommie Vaughn and Planet Ford Spring. I test drove a used 2019 F150 XLT at Tommie Vaughn and really enjoyed it. I'm seeing a lot of good deals for 2019 XLT's for under $30K and less than 30K mileage.

However, with COVID-19 and with my lease ending in September, I'm assuming prices and deals for 2020 models will start appearing. I've noticed Planet Ford has a 0% 84 months for 2019 F150 STX's going on now. I'd like to negotiate deals via email like I did on my lease. Here are my questions:

• What are y'all's thoughts on 0% 84 month terms? Is this bait and switch? Too risky to get upside down on car value? Are there generally penalties for paying those loans off early?
• What's the significant difference(s) between XL/XLT trims?
• Since this would be my first car purchase, would y'all expect better deals appearing near the end of summer for 2020 models?
• Would you recommend going to a credit union once I've received a quote to get pre-approved? How would you handle this?

Thanks y'all.

Most shouldn't have penalties for early payment, however, always read the finance documents.

An XL is like a work truck, it's going to be the most basic version of the truck, few if any options.

XLT can be very basic or very well equipped.

Contact 1ags on here and ask for his contact at Tommy Vaughn, they should be able to get you a good deal.

As far as using a credit union, you will not beat 0% that Ford is offering. However, if you have an option between rebates and 0%, then it would make sense to do the math on what the better deal is. It will depend on your credit score.

Contact info in my profile.

To get 0% you'll probably end up not being able to get various cash rebates. I've read about this on r/askcarsales and it's very much an either/or thing.

There's a ton of variables that really only you can answer.

I'd start with how long do you plan on owning the truck, are you going to get bored like you've already done flipping cars?

If you dont think you'll keep it a while 84 months is a great way to be upside down assuming you plan on just making normal monthly payments. If you plan on just making monthly payments, think hard about what kind of job you have and how safe you think it is long term. It's crazy how many raptors are out on the market now because people over bought.

Then think about xl/xlt (and ask a salesmen, i dont know the difference). I have an stx and love it, but ive never driven a bmw so i dont know any better when it comes to bells and whistle. The stx really just has a solid screen/back up camera, otherwise its a huge peice of metal with a fun engine in sport mode that does truck things. Do you need things more things? Tons of things as 1ags has shown can be upgraded on your own.

And because it wouldn't be the autoboard if i didn't add, i hear trucktober and truckvember are solid months, but if the economy gets going truckgust could be good too.

I will add that unless your list of "must haves" include a sliding rear window or ventilated seats... the XL STX package is a great platform if you're buying new.

Yea so a little more info about me..

I"m going back to grad school to get my MBA this August. I'll be doing it part-time while still working full-time at my job downtown. I work in O&G Midstream finance and I know with a large degree of certainty my job will be secure.

I don't plan on flipping the truck anytime within 5 years or so of purchase. Honestly this is gonna be a long term asset for me. I held my first truck for 8 years until everything fell apart. I just care about getting from A to B.

The idea of 0% APR 84 months (with no penalties of paying off early) sounds appealing considering I'll be out of school in 2 years with a significant bump in salary. I'd definitely start paying more off each month if I could.

When it comes to the truck, I'm pretty simple. All I really care about is a rear-view camera and Bluetooth connection. Don't care about rear-sliding window, nav system, heated/cooled seats. That's it.

With that said, I suppose an XL might be a better option.

email sent.

EMY92 said:

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Most shouldn't have penalties for early payment, however, always read the finance documents.

An XL is like a work truck, it's going to be the most basic version of the truck, few if any options.

XLT can be very basic or very well equipped.

Contact 1ags on here and ask for his contact at Tommy Vaughn, they should be able to get you a good deal.

As far as using a credit union, you will not beat 0% that Ford is offering. However, if you have an option between rebates and 0%, then it would make sense to do the math on what the better deal is. It will depend on your credit score.

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Wouldn't surprise me if in a few weeks, you might can have both. Auto sales are going to crater so the deals are only going to get sweeter.

If I were you, I'd wait a few weeks and see where things go...

Yeah I'd probably hold off for a few weeks.

0% and rebates? I was holding out on buying but that may be too good to pass up.

Allen Gamble said:

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...

When it comes to the truck, I'm pretty simple. All I really care about is a rear-view camera and Bluetooth connection. Don't care about rear-sliding window, nav system, heated/cooled seats. That's it.

With that said, I suppose an XL might be a better option.

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I would not buy an XL as that is a basic work truck. The STX is just an XL with a package that includes special seats, rims, various options, and a better screen.

Usually, you can get rebates or the 0% rate from Ford financing.

If you find one at Bill Fick in Huntsville, I can help you out.

XLT Sport with aftermarket leather is the best value in my opinion. Shop Cook Ford in Texas City. They destroy everyone on pricing.

STX

84 months on a non revenue generating asset that is guaranteed to depreciate out as well as cause you to incur additional expenses along the way?

no thanks.

don't take this the wrong way, but it looks like you are shopping for a payment, not a pickup.

I generally put at least 50% down and do a 60 month or less term.

i could write a check for a platinum pickup today, but I will not do it as i don't want to throw that money into the depreciation black hole. I would rather deploy those dollars somewhere where they
will go out and bring home more dollars.

Personally I think the XLT and XL are kind of a rip off by comparison to the other trucks on the market.

I would encourage you to look at as close to an apple-to-apple comparison with GM, Toyota, Nissan, Dodge.

I think there are better values out there.

Macarthur said:

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EskimoJoe said:

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84 months on a non revenue generating asset that is guaranteed to depreciate out as well as cause you to incur additional expenses along the way?

no thanks.

don't take this the wrong way, but it looks like you are shopping for a payment, not a pickup.

I generally put at least 50% down and do a 60 month or less term.

i could write a check for a platinum pickup today, but I will not do it as i don't want to throw that money into the depreciation black hole. I would rather deploy those dollars somewhere where they
will go out and bring home more dollars.

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But by this logic, couldnt you just leave all that money in an interest bearing account, pay the zero interest payment and come out ahead?

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no

that interest bearing account will have to pay a LOT of interest to overcome the depreciation that you will experience on the pickup.

what will the ownership of the pickup do to your net worth over the duration of ownership of the pickup?

DeWrecking Crew said:

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I get what you're saying, but you're taking the depreciation hit regardless of how and how long you finance it. If it's a long term asset as the OP suggests, 0% financing is the way to go, and it doesn't matter how long the term is.

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You are not taking a depreciation hit regardless of anything. You are choosing to take the depreciation hit, just as i am choosing not to. You do have the choice of letting someone else eat the depreciation, (at least greatly reducing the depreciation hit you take) and also put a large enough down payment down and a short enough term in the note so you don't find yourself upside down.

your mid 20s years are a time in your life when a lot of life changes can happen. you may find that you need to dump the pickup due to life changes but can't because of negative equity, or you makes another bad decision and roll the negative equity into another vehicle and wind up digging yourself a bigger hole

DeWrecking Crew said:

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The only way to avoid depreciation is to buy a vehicle that is 10 years old, otherwise the second you purchase any vehicle it's value drops, and has no relationship to how it was financed

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i never said any type of financing created more depreciation. However, when you finance a deprecing asset you run there risk of going under water on it. Look at bankruptcies, and how many of them have vehicle debt.

There is nothing wrong with driving a 10 year old vehicle. I would rather have the paid off house, 2 years salary in the bank and a fully funded retirement account. Have fun with that new truck, hope you dont get tired of it or need something different in the next 84 months!

Guitarsoup said:

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Leasing a BMW 3-series to buying a new XL or XLT on a 84 month note? One mistake after another.

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Keep on rollin' that neggity eggity!

Or get a lightly used brodozer that a laid off oilfield worker is dumping. Preinstalled truck nuts add value.

Cuterebra said:

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Or get a lightly used brodozer that a laid off oilfield worker is dumping. Preinstalled truck nuts add value.

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The amount of raptors coming on the market is crazy

This statement is correct in 95% of situations but if you do your homework you can beat the depreciation curve and at least hold your own.

My last two purchases were a 2013 Boss 302 that I bought for 34k and sold for 33k two years later and a 2016 Chevrolet SS sedan that i bought for 37.5 and sold for 37.5 3 years later.

Toyota 4Runners and Tacomas sometimes can fit in this category as well although to a lesser extent. The trick is to find a car where demand outstrips supply + an extra factor such as reliability with the Toyotas or the special nature of the two cars I've flipped.

Of course if you're looking at F-150's... the above doesn't apply because of the massive supply of them on the market your new truck is guaranteed to be a depreciating asset.

As for the other illogical argument about down payments and depreciation... totally separate equations. And really if you have the cash to put 50% down you have the cash to survive being upside down with no real damage. It's just a matter of what you want to do with your money and if it's more valuable to you being invested or paying down debts.

I once made a similar F150 purchase, bought a new 2011 4x4 XL when I was 27. Job and life circumstances led to me getting out of that and into a 2005 Tacoma in 2014. I paid 14k for the Tacoma and it got hit in 2018 by a red light runner. Insurance totaled it and I got 14,250. The truck had 181k miles and 13 years old.

Without being too long winded, I think a Tacoma is a far smarter buy, especially if you buy used. My '05 turned out to be a pretty awesome truck and even got me started with Uber driving up in Montana. I bought a 2010 last year after being Tacoma-less since March 2018. I paid 15.8 for a nice 4x4 double cab with the TRD off road package.

Oh yeah, Ford resale value is pretty bad, especially if you buy new. Just some food for thought from getting burned on that pickup.

For years I've had my eyes on buying a 4runner or a Tacoma but keep holding out waiting for them to put something a bit peppier under the hood. I keep hoping that a refresh is coming along with a powerplant that can make me smile. I love the styling on the TRD pro models and after taking our Explorer through some crazy off roading last year in Moab (not a good idea in an Explorer in case you didn't know) I've wanted something a bit more capable in that area.

And it might just be me, but the black on bottom tan on top interiors of the 4runner drives me absolutely nuts. Who the eff wants their interior to look like two separate crews did it? Just make it uniform people!

I cant get my mind wrapped around the concept of an 84 month note on an XL pickup