Is Your Ford F-150 Worth Your Retirement Plan?

Everyone loves their pickup trucks, especially Americans. The Ford F-150 continues to reign supreme as the most popular option. However, the Ford F-150 is also very expensive, and they might be taking up retirement funds. 

Americans are spending more on the Ford F-150 

According to MarketWatch, pickup truck sales are increasing. There were 13.2 million new pickup trucks sold from 2013 to 2019 in the U.S., with monthly payments as high as $1,300 for each one. This money is going into trucks instead of 401(k) plans or IRA payments. 

2021 Ford F-150 driving up steep mountain road
2021 Ford F-150 | Ford

A story from the Wall Street Journal recently shared a story about a couple struggling during the Coronavirus outbreak (COVID-19). The couple from Denton, Texas, struggled to pay $4,400 a month for their mortgage for four car loans/leases. 

Their minimum monthly credit card payment was around $700, which was easily managed before the pandemic. Once it struck, the couple had to defer payments on a leased Infiniti QX60 for three months until they received unemployment benefits. 

2021 Ford F-150 Lariat driving on country road
2021 Ford F-150 Lariat | Ford

The husband then traded in his Ford F-150 for a lower-cost car and reduced his original payment for $820 a month by about $100. Yep, a whole $100. But his income covers the couple’s $2,100 mortgage at least. 

Is the Ford F-150 expensive? 

Doesn’t $820 for a car payment seem pretty high? Then their Ford F-150 payment was even higher? The Ford F-150 has been the best-selling vehicle in the U.S. for almost 40 years, and it’s on track to keep that momentum going in 2020. So, even if it is expensive, buyers don’t seem to mind. 

The base model 2020 Ford F-150 begins around $28,745, but you have to pay more for modern luxuries such as Apple Carplay or Android Auto and go all-in on a fully loaded option with all the bells and whistles, you could spend between $50,000 to $70,000. 

With a 4% loan over 60 months, you could have a truck payment in the $800 to $1,300 range. That’s more than it costs to rent a home in some cases. That’s also a lot to spend on a truck if you don’t need it for your daily job. 

2020 Ford pickup trucks in a field
Trim levels include XL, XLT, Lariat, King Ranch, Platinum and Limited, in addition to Raptor. Law enforcement can choose the F-150 Police Responder – the industry’s first and only pursuit-rated pickup, giving agencies a more versatile and capable patrol vehicle.

Over 2,105,820 trucks were sold in 2019, so that number seems pretty high for the number of professions that require a full-size truck. People could save nearly 60% of their income by maxing out their 401(k) instead of buying a $70,000 truck. 

Why do so many people buy the Ford F-150? 

Well, life is short, and people feel delighted with a nicer truck. The convenience of the 4×4 wheel, an extended cab, features such as rear-cross traffic alert, all can make driving better, especially during long trips or commutes. 

A gray 2021 Ford F-150 Hybrid towing a boat
2021 Ford F-150 Hybrid | Ford

How Much Does a New Ford F-150 Cost?

But it’s slightly subjective to truly rate how much happier someone is with a fancy truck instead of more monetary wiggle room. According to Edmunds, the 2020 Ford F-150 receives high marks for its high towing and payload capacities for work and play, comfort and tech options for essential blue-collar affordability to luxury living, and multiple engine options that balance power and its fuel economy.