I am in the middle of the purchase of a new F150 and I usually pay cash. The day I drive off in a new vehicle is the day I start saving for the next one. They offered 1.9% for 36 months with a payment of an about $1500/month. To get it I have to give up a $2000 incentive. $50k of my ”truck fund” is in CDs at a credit union at 4.5-5% interest. I can either pay cash and replenish my truck fund at $1500/month from my income or finance it and cash flow the payment, keeping my savings intact. I will be money ahead by financing. The interest over the 36 months is under $1500 and I gave up $2000, so borrowing cost $3500. My savings compounds to about $7500 in interest over 36 months. If I replenish I can‘t get the high savings interest until it accumulates to meet the minimum for the rate, so interest will be minimal for much of the period. It is my first borrowed money since 1999 when we paid off our house.
I have been watching the truck market and inventory for a year and I was getting close to a purchase decision. My 2015 F150 with 152k miles just had a very uncommon transmission problem and rather than an expensive repair on a 10 year old truck a dealer offered me a fair but diminished trade value and a discounted price on a new one. To compound the issue, I am at our FL home 1260 miles from our other home where I could better deal with a broken truck. Here my broken truck means I rent a car. In NY we have other vehicles. Having watched the market I think the deal is as good as I can expect. I should be behind the wheel in a few days. Interestingly I bought the 2015 in FL, too. At my age I wonder if this truck will see me through…