My thoughts on the Electronics Package
#61
Just to put a bow on this topic and tie it up, i added back the electronics package. Hah. Primarily because it is now going on my race red track pack gt. What could i possibly ever trade a 420 horse torsen diff brembo braked 3.73 mustang with leather recaros for? The answer. Nothing hah. Im keeping this car a long time so not worried about the trade in as much anymore.
#62
Does anybody else wonder why a self-professed "rich" guy (could buy two GTs) who is also supposedly well versed in personal economics would be getting a 72 month loan? Unless you can get such a loan at 0% (or really close to it), the longer term just ends up costing money unnecessarily. Sounds to me like someone who has lots of credit and lots of "stuff"... and lots of debt. That's not rich in my book.
And yes, you can get much of the functionality of the electronics package with a GPS or smartphone. But you can't get all of it and you certainly can't get the integrated look with a GPS or phone hanging from your windshield. Some of us are willing to pay more for that regardless of resale value, some of us aren't. I agree with MilesTeg - I'd rather pay more for exactly the car and equipment I want rather than later regretting some option I left out.
And yes, you can get much of the functionality of the electronics package with a GPS or smartphone. But you can't get all of it and you certainly can't get the integrated look with a GPS or phone hanging from your windshield. Some of us are willing to pay more for that regardless of resale value, some of us aren't. I agree with MilesTeg - I'd rather pay more for exactly the car and equipment I want rather than later regretting some option I left out.
#64
Yep - I'll take these record low interest rates as long out as they'll give me. Besides, with inflation (yes its higher than reported) I am paying it back with cheaper and cheaper dollars the further out I go.
Plus, if you use a debit card, you can make a decent 3% interest on your cash reserves - as compared to most banks paltry 0-1%. Since the Great Implosion caused savings rates to plummet, I haven't made less than 3% for 4-5 years now. Just by swiping my debit card.
http://ratebrain.com/
Plus, if you use a debit card, you can make a decent 3% interest on your cash reserves - as compared to most banks paltry 0-1%. Since the Great Implosion caused savings rates to plummet, I haven't made less than 3% for 4-5 years now. Just by swiping my debit card.
http://ratebrain.com/
#65
Not sure where this thread is going but I have the electronics package on my 5.0 and wouldn't trade it for anything. I also plan to have the car till I die and am not worried one bit about the electronics being outdated down the road.
Also, I financed my car with nothing down over 75 months for 2.79% and would have gone longer if I could have at that rate. As previously stated $ in other investments is worth much more than the title to a car ... even if it is a mustang
Also, I financed my car with nothing down over 75 months for 2.79% and would have gone longer if I could have at that rate. As previously stated $ in other investments is worth much more than the title to a car ... even if it is a mustang
#66
Oh the assumptions reek in this post. 1) I never said i was "rich". Find one place i said that. 2) i dont have to get a 72 month loan. Hell i could get a 36 month a 60 month you name it. Now tell me something oh wise one. Why the heck would i get a shorter term loan when my stellar credit allows me to get 2.9% for 72 months. Thats free money in your hands. I can invest the money im saving because of the exceptionally low interest rates and get a greater return than taking a shorter term loan. You obviously know less about finances than you think. Cash in the hand especially with ungodly low interest rates is gold in your hands to invest. Just for full disclosure made a hell of a lot more money last year in the market than i did at my job. And thats during a bear market my friend. That money they are giving me for virtually free? That is invested.
Now i dont know who taught you the mantra that all debt is bad. I guess that advice does help the less responsible or less successful to save. And it might have been true in the early 80s with staggering interest rates. But if you have stellar credit these days you would be a moron to not take free money as far as interest goes. Unless you think your investments cant beat a 3% interest rate. Now i do considerably better than that on average and as a result i have no issues, contrary to your "wise" analysis with either cash on hand or debt to cash ratio. I just choose to keep as much of my cash as possible in my hands to get a better rate of return.
Now i dont know who taught you the mantra that all debt is bad. I guess that advice does help the less responsible or less successful to save. And it might have been true in the early 80s with staggering interest rates. But if you have stellar credit these days you would be a moron to not take free money as far as interest goes. Unless you think your investments cant beat a 3% interest rate. Now i do considerably better than that on average and as a result i have no issues, contrary to your "wise" analysis with either cash on hand or debt to cash ratio. I just choose to keep as much of my cash as possible in my hands to get a better rate of return.
2) 2.9% is a decent but not stellar rate for a new car loan these days. Just as an example, my credit union is currently offering 2.75% for 72 months and less for shorter terms. And that's the point - for a 60 month term you can get 1.9% from a bank/credit union or 0% plus $1,000 cash from Ford on many models (including '12 Mustangs). Let's see... on a 30K loan, that extra year cost you almost $1,200 from a bank or $3,721 from Ford financing. The latter would have paid for your electronics package and then some.
Debt is not necessarily bad (excessive debt is bad). But carrying debt merely to gain a small percentage (for example 2.9% debt for a 3% or 4% return) is often not a good idea - especially when the debt is on a depreciating asset like a car. You generally lose more than the small percentage investment gain just through the depreciation of the asset along with all the fees and costs involved in your investments that cut into your net profit.
But the big point here is the one extra year between a 72 month term and a 60 month term. That is the tipping point where rates change significantly. The rate difference between a 48 month and 60 month loan is often insignificant but not so with 72 month rates. Every case is different but more often than not, from an investment/cost perspective, 72 month car loans should be avoided.
And it doesn't matter whether interest rates are high or low - it's the spread that makes the difference. In other words, it doesn't matter whether you have a 2.9% loan with a 4% investment return or a 7.9% loan with a 9% return.
#67
I suspect 'most people' haven't had other Fords with a bunch of fancy electronics that don't work as advertised... when they work at all. MyFordTouch has gotten quite a bit of bad press, as has SYNC alone. The SYNC in both my Mustangs was pretty reliable... but it was **** in the Taurus, and as mentioned before, the MyFordTouch in the new Escape has been nothing short of a PITA since we got it. And Ford doesn't seem to be in any kind of hurry to fix it.
If you need help with your MyFord Touch in the Escape, don't hesitate to contact me. F.Y.I. we're working on another update for it.
Rebecca
#69
Well excuse me, you were the one expounding on the minutia of whether a $2,000 option on a depreciating car was a good investment. Make up your mind. If you want to talk numbers in the hundreds and low thousands then that $1,200 difference between 60 and 72 months is not insignificant. If you think that the $1,200 is minutia then why did you ever start this thread in the first place - the electronics package cost would be just chump change.
I spent many years working in the financial reporting department of a large regional bank and we loved "investors" like you... we made lots of money off them - just like casinos make lots off of gamblers with a "system".
I spent many years working in the financial reporting department of a large regional bank and we loved "investors" like you... we made lots of money off them - just like casinos make lots off of gamblers with a "system".
#73
Just to put a bow on this topic and tie it up, i added back the electronics package. Hah. Primarily because it is now going on my race red track pack gt. What could i possibly ever trade a 420 horse torsen diff brembo braked 3.73 mustang with leather recaros for? The answer. Nothing hah. Im keeping this car a long time so not worried about the trade in as much anymore.
#74
Resale, trade-in, recoup the price of the Electronic Package, Geeze. Never entered my mind for a second. I ordered my car to enjoy it and wanted the navigation with dual zone climate control, HD radio, Sync, rear back-up camera on the large screen and not just in the tiny left corner of the mirror if ordered. I am exhausted with getting lost and pulling over the side of the road and digging under my seat for the garmin, digging for the garmin stand and cable and hooking it up with the wire hanging in front of my stick shift etc, etc.
Brand spanking new beautiful Mustang GT/Premium with Electronics Package, Comfort Package, Shaker Pro Audio (Awesome) and 19 inch wheels. I am a happy camper. That's about the size of it for me. Enjoy every second of it and not wanting for anything or wishing I coulda or woulda. Loving it !!!!
That's why I bought my Stang. To enjoy it my way. You should enjoy it your way. If it will haunt you that you spent that money on an option - DON'T GET IT !!!! Because it will haunt you...
Brand spanking new beautiful Mustang GT/Premium with Electronics Package, Comfort Package, Shaker Pro Audio (Awesome) and 19 inch wheels. I am a happy camper. That's about the size of it for me. Enjoy every second of it and not wanting for anything or wishing I coulda or woulda. Loving it !!!!
That's why I bought my Stang. To enjoy it my way. You should enjoy it your way. If it will haunt you that you spent that money on an option - DON'T GET IT !!!! Because it will haunt you...
#79