Monthly payments

Doubeleive said:

err. uh no. maybe several years ago, you can pretty much double those payments if you went and took a loan today, even with very good credit.

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$70K, 6%, 72 months is $1160. $80K is $1325.

Doubeleive said:

err. uh no. maybe several years ago, you can pretty much double those payments if you went and took a loan today, even with very good credit.

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#truth

I cringe when I see how much our payment is....

A truck payment being double my house payment is not gonna happen for me!

i saw that and was like um, what time machine you got

SpareParts said:

A truck payment being double my house payment is not gonna happen for me!

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mine are way more than double
but thats mostly because i dont have house payment

vcode said:

$70K, 6%, 72 months is $1160. $80K is $1325.

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So if you finance $80k truck for 72 months you are actually paying over $100k for that $80k truck.
After 6 years what is the depreciation?

I am not sure most people think about that part of financing anything that depreciates.

I have a 2024 Tahoe HC and it’s not the first time I paid cash for a truck but it’s the most expensive truck I’ve ever owned.
I never would have bought something like this when I was in my 40’s or 50’s, I would rather max out my 401k and buy real estate at that age and drive a lower end truck.

Financially it’s stupid money but I am at a good place financially and old enough to spend stupid money on something that depreciates and I absolutely love driving!

Good luck to those financing but if you’re a younger guy buying one of these trucks and making payments over $1k a month and you don’t have your future retirement covered - be advised! It is way more fun to spend money when you have enough to spend!

Saltydog said:

#truth

I cringe when I see how much our payment is....

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I cringe when I see the interest rates posted in the thread....I totally get that rates are high today, but they should start in the 3's and hit 5.99% for 7 years (don't do that). A few posts above says 6%. The reason we borrowed is we have to be realistic and have a plan B--what if I were to lose my job? Having the extra money in savings is a cushion, but I know, not the brightest move. Paying 4.29% on loan and only getting 3.10% for savings, AND the market hitting new highs every day. But like I said, plan B. What if I lose my job, what if the market doesn't go up and goes down. Btw I can attest to this--just refi'd in order to save $6/mo and to get a $250 bonus to refi. Applied online Monday night. By Wednesday afternoon, it was all completed (old loan paid off, paid interest of $3 on both loans for 1 day). Both credit unions. I'm a fan over banks--they do what they say.

BacDoc said:

So if you finance $80k truck for 72 months you are actually paying over $100k for that $80k truck.
After 6 years what is the depreciation?

I am not sure most people think about that part of financing anything that depreciates.

I have a 2024 Tahoe HC and it’s not the first time I paid cash for a truck but it’s the most expensive truck I’ve ever owned.
I never would have bought something like this when I was in my 40’s or 50’s, I would rather max out my 401k and buy real estate at that age and drive a lower end truck.

Financially it’s stupid money but I am at a good place financially and old enough to spend stupid money on something that depreciates and I absolutely love driving!

Good luck to those financing but if you’re a younger guy buying one of these trucks and making payments over $1k a month and you don’t have your future retirement covered - be advised! It is way more fun to spend money when you have enough to spend!

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My advice is to put 50% to 100% down (100% means buy outright). It's hilarious, I'm seeing $10k discounts on 2026 HC Tahoes. Why that's not really very good is the price went up $5800 over a 2025. That would be similar to a $4200 discount last year. Thing is, people only have so much income regardless of if they are willing to part with it. imho 96k for a Chevy Tahoe is pushing sensibility, even if one has it to spend...

When we purchased summer of 2021 rates were much lower and we got a 48 month loan and paid it off in 14 months. Gave us the flexibility in case we had a financial shortfall but in the end we paid very little interest.

And Christmas this year, when we got our daughter in law a new Pacifica Navy Federal gave me 3.99 for 36 months and that one we paid off in 5 months. We bought her a 2025 after the 2026 model year started and got nearly $12k knocked off.

The loan isn't a bad idea, but paying off the interest is.

Since we don't drive our 2020 daily we have very low miles on it so we aren't in the market soon, but $100k for replacement does seem like a lot even with no interest.

Johnny Fr said:

I cringe when I see the interest rates posted in the thread....I totally get that rates are high today, but they should start in the 3's and hit 5.99% for 7 years (don't do that). A few posts above says 6%. The reason we borrowed is we have to be realistic and have a plan B--what if I were to lose my job? Having the extra money in savings is a cushion, but I know, not the brightest move. Paying 4.29% on loan and only getting 3.10% for savings, AND the market hitting new highs every day. But like I said, plan B. What if I lose my job, what if the market doesn't go up and goes down. Btw I can attest to this--just refi'd in order to save $6/mo and to get a $250 bonus to refi. Applied online Monday night. By Wednesday afternoon, it was all completed (old loan paid off, paid interest of $3 on both loans for 1 day). Both credit unions. I'm a fan over banks--they do what they say.

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Local credit unions are 6% for 72 months here...

Carfan said:

When we purchased summer of 2021 rates were much lower and we got a 48 month loan and paid it off in 14 months. Gave us the flexibility in case we had a financial shortfall but in the end we paid very little interest.

And Christmas this year, when we got our daughter in law a new Pacifica Navy Federal gave me 3.99 for 36 months and that one we paid off in 5 months. We bought her a 2025 after the 2026 model year started and got nearly $12k knocked off.

The loan isn't a bad idea, but paying off the interest is.

Since we don't drive our 2020 daily we have very low miles on it so we aren't in the market soon, but $100k for replacement does seem like a lot even with no interest.

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different situations for everyone, when you have the capability of making "extra" payments that's all fine and dandy.
kind of silly to assume everyone is in the same position.
look at the guy driving a beat up old 1990's sedan with duck tape for a window, think he could pay off a new ride in 5 months?

vcode said:

Local credit unions are 6% for 72 months here...

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The other thing is credit unions do vary in rates. ours is 4.59% for 61-72 mos. I used to say never go beyond 36, but let's be realistic, many vehicles are six figures and beyond. Our rate is 4.29 which applies to 37-60 mos. Navy Federal.

Johnny Fr said:

I cringe when I see the interest rates posted in the thread....I totally get that rates are high today, but they should start in the 3's and hit 5.99% for 7 years (don't do that). A few posts above says 6%. The reason we borrowed is we have to be realistic and have a plan B--what if I were to lose my job? Having the extra money in savings is a cushion, but I know, not the brightest move. Paying 4.29% on loan and only getting 3.10% for savings, AND the market hitting new highs every day. But like I said, plan B. What if I lose my job, what if the market doesn't go up and goes down. Btw I can attest to this--just refi'd in order to save $6/mo and to get a $250 bonus to refi. Applied online Monday night. By Wednesday afternoon, it was all completed (old loan paid off, paid interest of $3 on both loans for 1 day). Both credit unions. I'm a fan over banks--they do what they say.

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We have a 3.99% on a 60 month.

Saltydog said:

We have a 3.99% on a 60 month.

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Why not share the institution, so others can save?

edit This fits the MO, stipulation is you have to use the buying service. Maybe yours is elsewhere

says anyone can join

I have 4 vehicles and pay a combined $3300 a month in payments

But talking payments is different for every financial situation. For me it makes sense.

I’d rather have a long term loan at a lower interest rate than I get on my investments. That is how I roll.

Paying cash would not be beneficial for me when I make 7%+ yearly and the interest is 4% on a loan. I’d be losing money to pay cash.

I make more in interest each month than my combined car payments! Save early and build a revenue stream than buy toys.

ReaperHWK said:

I have 4 vehicles and pay a combined $3300 a month in payments

But talking payments is different for every financial situation. For me it makes sense.

I’d rather have a long term loan at a lower interest rate than I get on my investments. That is how I roll.

Paying cash would not be beneficial for me when I make 7%+ yearly and the interest is 4% on a loan. I’d be losing money to pay cash.

I make more in interest each month than my combined car payments! Save early and build a revenue stream than buy toys.

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Here is the funny thing--the entire time that I have been alive, your strategy has worked! But I don't use leverage. I am no spring chicken, and, stocks have never gone down for any sustained time in my life. Easily proven, when the S&P hits new records day after day, week after week. So your way works. The only time it doesn't, is when there is a temporary downturn, that likely feels uncomfortable being leveraged. I sold a mutual fund the value of the 2025 HC, AND, I didn't use the money to buy it. I ended up using savings and borrowed 30%, and the cash is sitting earning 3.32%, while I said above, the loan is 4.29%, losing almost 1%. Not only that? I didn't know one had to pay the cap gains the quarter realized, and so although I didn't pay a penalty, I am making estimated payments to the IRS! Why do I share this info? Because it's all in learning. Your way has made sense 1994-2026, my entire investment career. It would stop making sense if there were an extended downturn. But diversifying helps me--I've got darn stocks that are up 70% in a year, again, making no sense. When does all this matter....when we retire and don't have a job as primary income. Let's hope the market just keeps going up, knock on wood. The other thing is my employer has allowed me to max the 401k to IRS limit, since joining, previous job didn't pay quite enough to do that. It's good to put everything in perspective. We're here because we love our vehicles.

This is also not a vehicle to delve into if you need two incomes and every single dollar to survive. Every family of vehicles has a price range that works for what stage your family is in. If these vehicles' cause stress in your financial life, you should step down a grade or two. Living below your means just feels better.

Johnny Fr said:

Why not share the institution, so others can save?

edit This fits the MO, stipulation is you have to use the buying service. Maybe yours is elsewhere

says anyone can join

How to Become a Member | How to Join | Consumers Credit Union (CCU), The People in Your Corner®

Becoming a Member of Consumers Credit Union is quick and easy. Learn how to join and about the benefits of membership at Consumers Credit Union.

www.myconsumers.org

Auto Loans | Vehicle & Car Loan Rates | Consumers Credit Union

Consumers Credit Union offers auto loan options for new and used vehicles, RVs, motorsports, and boats. Find the right financing option for you.

www.myconsumers.org

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Sorry, this is through our local Credit Union - EECU

For those financing and saying you are getting more on invested money, this is true but you are also paying $100k for that $80k vehicle.

If you want to make the smartest financial decision with purchasing a Tahoe or Yukon, buy a 2 year old model with cash. You will end up paying $50k to $60k for that $80k vehicle and no payments.
That’s probably the smartest financial move.