Financing for a new van? Yikes

Ozarker

Pontoon Admiral
Only fools buy vehicles based on payments, actually, that goes for buying anything.

A buyer should be buying based on a price that reflects; 1. market value of the asset the time it is purchased & 2. the economic or intrinsic value (the use expected) being an additional value over the market value. For a good deal something needs to be worth more to you than what you paid.

The sales pitch "This is your chance to own adventure, no line, no waiting, buy now and go". :ROFLMAO:

That has no bearing on the value of an asset, convenience is an expense, adventure is an emotion that is only an intrinsic value which will be different for every buyer. What's a smile on your face worth today, in 6 months and will it still be there 3 years later?

My definition of a rebate is: A return of the amount an item was over priced when it is sold. What something is really worth is what is sells for, not what was asked prior to a sale.

The cost of money (interest) changes, sometimes quickly. In 1957 my Dad bought a house, 2% interest, payment was $55.00 a month. By the 70's the utility bill was more than the house payment. Inflation will reduce your economic cost of borrowing money long term, say over 5 years. Since real estate is an appreciating assets (most often) borrowing long term is a good deal, interest paid is actually making you money, as equity when inflation is more than your cost of money.

That won't ever happen with any vehicle, however there are exceptions with classic/collector items. Few here are buying vehicles for a museum.

$125,000 at 6% for 10 years your payment is $1,387.76 , total paid $166,530.75. If you put $25,000 down on that $150,000 vehicle, you'll pay $191,530.75.

What are 10 year old vans selling for? Will the future market hold for that van? Assuming you don't crash it and it's still in good condition, you'll have a salvage value, some money back. Maintenance and repairs are an expense toward your salvage value, a cost to retain a future value.

You can play with the numbers as to what it might sell for, the more you use it the less future value you'll have. Selling for $40,000 in 2033, so you lost $151,500 or more depending on expenses. I have no idea what insurance would be, or increased fuel costs.

Your use and pride of ownership will cost about $1260. a month........enjoy! :)
 

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