# I am absolutely speechless.



## Remington 7400 (Dec 14, 2005)

My cousin has been looking to buy a new truck for some time now. He called me this morning and asked me to come look at his purchase. He bought a 2007 F-150 with every possible option you can get (except a towing package :-? and when I asked him about that he replied, you must be crazy if you think I would pull a trailer with my truck) Sun roof, 12 CD changer, leather heated seats, GPS navigation, DVD players, the whole works. Anyway it cost him a grand total of $42,000.00  Here's the kicker, he payed ZERO down, and financed it for 10 years at 7.2%

Way I figure it,

7.2 % of $42000.00 is $3024.00
that equals $45024.00
financed for 10 years equals 120 payments
$45024.00/120 equals $375.20 a month for 10 years

WHAT IS WRONG WITH PEOPLE?

I might not be the richest man around, but it ain't because I finance my life away on a truck that I am scared to pull a trailer with. God forbid we need to drive somewhere that's not paved. :eyeroll:


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## Horsager (Aug 31, 2006)

With revolving monthly interest it will be much more than $3024 worth of interrest. I ran the numbers through a loan calculator and this is what they came up with. Monthly payment, $492. Interrest paid, $17,039.28. The total cost for the truck after 10 yrs is just over $59,000. I'm really hoping someone shows me where I made a math error.


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## itchy (Aug 15, 2006)

It's, worse than you thought, the total he will pay for that "$42,000" truck is $59,040, you forgot interest is compounded, the monthly payment is $492 X 120. Let me guess, your cousin is under the age of 25 with no kids.


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## USSapper (Sep 26, 2005)

the best thing he probably could have done here was at least put some sort of down payment down. Doesnt take a rocket scientist to figure the money you would save on interest doing this


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## lvmylabs (Jan 23, 2006)

I am still floored at the statement that he made about not daring to pull anything with it. Why buy a pick-up if he isn't going to use it. I miss the old days when pick-ups were work horses. Solid Front axles, leaf springs up front. I want a pick-up to ride like a pick-up. Don't get me wrong you can still find work horses in newer pick-ups, but most of the half tons out there are starting to get pretty soft. I by no means abuse my pick-ups, but I do use them. Sprayed in a liner so I am not afraid to throw anything in the bed, pull the boat, decoy trailer, and snowmobile trailer when ever my little heart desires. In my opinion that is what pick-ups were made for. But that is just my opinion.

Have a great weekend guys, I am off to go and catch some fish

Jim


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## KEN W (Feb 22, 2002)

Worst thing is he probably will trade it in before 10 years....and get another....endless car payments.


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## njsimonson (Sep 24, 2002)

7.2 % of $42000.00 is $3024.00 
that equals $45024.00

Daaaaamn...if only reality WAS that sweet!


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## Remington 7400 (Dec 14, 2005)

> Let me guess, your cousin is under the age of 25 with no kids.


Hes 23, brings home a little over $26,000.00 a year after cuts. :eyeroll:



> 7.2 % of $42000.00 is $3024.00
> that equals $45024.00
> 
> Daaaaamn...if only reality WAS that sweet!


I never claimed to be a math genius. Man I'm even sicker than I was now. uke:



> I am still floored at the statement that he made about not daring to pull anything with it. Why buy a pick-up if he isn't going to use it. I miss the old days when pick-ups were work horses. Solid Front axles, leaf springs up front. I want a pick-up to ride like a pick-up. Don't get me wrong you can still find work horses in newer pick-ups, but most of the half tons out there are starting to get pretty soft. I by no means abuse my pick-ups, but I do use them. Sprayed in a liner so I am not afraid to throw anything in the bed, pull the boat, decoy trailer, and snowmobile trailer when ever my little heart desires. In my opinion that is what pick-ups were made for. But that is just my opinion.


Probably not as floored as I was.

My trucks ARE work trucks. Most of you guys already know, but I'm a painter/contractor. Got a 94 F-350 bucket truck, I don't abuse it but I take it anywhere I need to go, its a 4x4 w/ positive traction rear end. Got the 7.3L diesel 5 speed w/ bulldog. Toughest truck I've ever drove, pull 14 and 16 foot utility trailers all the time along 12 foot scaffolding trailers with 50+ bucks about once a month. When I'm painting outside and using the bucket alot its not uncommon for the truck to idle 7-8 hours a day.

Got a 97 Toyota Tacoma 4x4 that I hunt out of and drive on the weekends. Can't imagine being afraid to hook my pop-up or ATV trailer to it. People are different I guess. :roll:


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## Dak (Feb 28, 2005)

That is just painful...I had never heard of a ten year car loan before.

I can't imagine having a truck, no matter how nice, that I couldn't work/hunt/fish with.


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## dakota31400 (Jun 10, 2006)

Thats 7.2% for 10 years...he will shell out almost 70K by the time it's paid off. that 3000 dollar interest is just for year 1....and usually, you pay the entire interst first before anything comes off the purchase price. He will still owe $40,000.00 five years from now and his payments are gonna be more like $550.00/month.


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## MSG Rude (Oct 6, 2003)

My goodness!

I bought an '06 Suburban (four kids, wife, and me makes 6) and we do trips out East, that is why I got it BUT....

I put my decoys inside. I have put my deer on the back on the tow-hitch rack (and the deer were uncovered  .

I tow my 20' boat with it and I tow my 16' utility trailer with it too.

I have everything in and on that truck to include a 15" DVD player in the ceiling (refer to above as to why) and it cost about 50K..BUT....I got 0 % interest for the LIFE of the loan and a 5 year note on it.

Shopping around pays off and if you buy a truck, use it as a truck.

Oh ya, I almost forgot...I drove it all over Devils Lake a week or so ago. Not around DL but on DL.


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## cut'em (Oct 23, 2004)

I just picked up my 07' F250 diesel crew cab and got 1.9% $48500.


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## Zekeland (Oct 6, 2005)

ZERO DOWN!!!!

One of the worst deal's around. All the seller does is make the payments affordable on paper. The younger folk really don't seem to care about what comes later.

There is a guy here at work , that's his nickname...ZERO DOWN!!!
Then he can have everything he wants and pay dearly later in life!!! :eyeroll:


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## Jungda99 (Nov 17, 2006)

Not to get off topic but most of the time ZERO DOWN is the way to go if you can be smart with your money. With interest rates so low you would be better off investing your down payment. I know a few years back when I bought my first new truck my interest rate was around 3%. so for every $1000 I put down it only dropped the payment $15. With that being said you can take your downpayment in put it a easy to find CD for 5.6.or even 7% return. Or the stock market and get even higher return.

I wouldn't think about putting money down on a vehicle unless the interest rate starts to get around 10% or higher. I also would never go more the 60 months either.


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## boondocks (Jan 27, 2006)

njsimonson said:


> 7.2 % of $42000.00 is $3024.00
> that equals $45024.00
> 
> Daaaaamn...if only reality WAS that sweet!


HA! I was thinking the same thing.


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## dakotashooter2 (Oct 31, 2003)

Not to mention he will probably absorb another 2k or more per year in depreciation. If he really sat down and figured it out I wouldn't doubt if that truck will end up costing him $800 or $900 a month to drive before fuel and insurance (your payment cost really doesn't give you a true cost of operating a vehicle). He will be lucky if it is worth the balance owed in 5-7 years. That is why you NEVER go over 60 months on an auto loan.


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## dblkluk (Oct 3, 2002)

WOW!! 10 years on a half ton???? 
I guarantee you he will NOT be able to trade that thing until its paid off...
Sounds like he paid sticker price too!! Somebody seen him comin'!!!! :eyeroll:


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## h2ofwlr (Feb 6, 2004)

> must be crazy if you think I would pull a trailer with my truck


I have an explaination, he is a
















God knows the Cities is full of







driving SUVs down here


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## caribukiller (Oct 30, 2006)

i guy around here just bought new Polaris fst it's like a $13000 machine and he got it financed for 7 years but here's the kicker he's buying it to replace his old sled that got repoed


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## indsport (Aug 29, 2003)

Just goes to show the state of financial education of today's young consumers. In our family, we save and invest the payments that would normally go for a vehicle, buy a 1 year old vehicle (save 20%), pay cash (and usually get another 10% off), have the gains on the money left over and not pay any loan interest. Get ahead of the curve, not behind the 8 ball. Bet the cousin hasn't saved anything for retirement either.


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## Danimal (Sep 9, 2005)

OMG!!!

I have a bloomberg terminal at work so I can run all kinds of financial senarios. Itchy and Horsager are right on with the numbers. Pretty scary, huh??

Now if your cousin can pay a little extra each month, it will help out huge in the long run.

Lets assume his loan of 7.2% for 10 years, first payment due 2/28/07 and last payment due 1/31/17..... if he pays no extra, then the total interest paid is $17,039.50

Here are a few suggestions:

If he pays an *extra $25 *per month towards principle, then the total interest drops to $15,759.4 and his last payment will be 5/31/16. *Saving $1,280.10 in interest and 8 months of payments*

If he pays an *extra $50* per month towards principal, then the total interest drops to $14,663 and his last payment will be 10/31/15. * Saving $2,376.51 in interest and 15 months of payments.*

If he pays an *extra $75 *per month towards principal, then the total interest drops to $13,712.80 and his last payment will be 04/30/15. *Saving $3,326.72 in interest and 21 months of payments.*

What if some bad luck hits and he is in an accident (I hope not) and the truck gets totaled during those 10 years. He'll still owe money on it after he no longer owns it. In the original loan, after 5 years of payments, he'll still owe over $24,000 on the truck. Would it be worth that????

I hope your cousin can pay extra on the truck, for his sake.


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## verg (Aug 21, 2006)

i tell you what..i now have one of the best feelings in the world-- A paid off truck! 
Last month i made my last payment on my truck. I have a '00 chevy half ton ext. cab with only 55,000 miles on it. In great condition and NO PAYMENTS! 
I am 33 yrs old and drive a 7 yr old vehicle. That is the problem with youngs guys out on their own with their first decent job. They think they can just go buy a brand new vehicle or sled or whatever. It seems they have no concept of money. I also blame some salesman. As others had said...they see them coming and get their commission.


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