I’ve been considering purchasing a new or certified pre-owned (2021+) Raptor for a couple of years now. It would easily be the most expensive vehicle I’ve ever owned, and while I absolutely love these trucks, the payments make me hesitate. Every time I feel ready to make the leap, I talk myself out of it.
I know everyone’s financial situation is different, but what do you think is a reasonable salary to afford one of these trucks? Any advice would be greatly appreciated!
One smart approach I’ve seen is to put away the monthly payment amount as savings for a year before buying. This way, you’ll know if it fits into your budget. Plus, you’ll have a hefty down payment ready if you decide to go for it.
@Keaton
I did something similar when I bought my first truck. Saved the payment amount monthly for two years, and by the end, I had enough to pay for it outright. Even worked with my bank to loan the money to myself to build credit while I paid myself back.
Personal finance is very individual, but a general rule is the 20/4/10 guideline: put 20% down, finance for no more than 4 years, and spend less than 10% of your monthly income on transportation (payment, insurance, gas, etc.).
For a $75K Raptor, that means:
$15K down
$1,100/month payment for 48 months
$400/month for insurance and gas
You’d need an annual income of roughly $250K gross to comfortably fit those numbers into the 10% rule. Of course, adjust based on your priorities and lifestyle.
Dealers are offering 72-96 month loans with insane interest rates to make these trucks “affordable.” People stretch themselves thin with these loans, and it’s rarely a good financial decision. Stick to a 48-month loan if you can and avoid overextending yourself.
I make over $100K and would put down $10-20K, financing the rest for 48-60 months. My mortgage is $3,100/month, and I contribute to retirement accounts and my kids’ 529 plans. I’m cautious about making such a large purchase because I grew up watching my parents struggle with money.
@Nico
As a financial planner, I’d suggest putting down 35-55% and ensuring the payments don’t strain your cash flow. If you can still max out your retirement contributions and cover regular expenses, it sounds like you’re in a good position to buy the truck.
What helped me justify buying my Raptor was thinking about the experiences I’d have with it. Joining an off-roading group and taking it on adventures with my family has made the investment worth it.
Rory said:
What helped me justify buying my Raptor was thinking about the experiences I’d have with it. Joining an off-roading group and taking it on adventures with my family has made the investment worth it.
My two boys would absolutely love off-roading adventures. The smiles-per-gallon would make it worth it!
If you can run the truck through a business, you might be able to write off the purchase and reduce your taxable income. It’s worth considering if you’re self-employed.
Oak said:
If you can run the truck through a business, you might be able to write off the purchase and reduce your taxable income. It’s worth considering if you’re self-employed.
That’s a great idea. I’m a CRNA and own my own anesthesia practice, so this could definitely work for me. Thanks for the suggestion!
General advice is to keep vehicle expenses under 15-20% of your take-home pay. But if you’re frugal and have strong savings habits, you could justify spending a bit more on something you truly enjoy.
I have a high income but still couldn’t bring myself to buy a Raptor. I grew up watching my parents struggle with money, and that’s always in the back of my mind. I ended up leasing a more affordable Explorer ST instead.
Hearing about everyone’s experiences and financial approaches is helpful. I think I’m leaning toward a certified pre-owned Gen 3 Raptor instead of buying brand new.