The 2015 Detroit Auto Show is taking place this week, and auto manufacturers from the world are trotting out their best and newest. For the Detroit Auto Show, carmakers are focused on making a big impression by introducing sleek new designs, engines that boast more power than ever and the newest car technologies. What they are less concerned with is outlining their pricing or proving their models offer affordability.
So GOBankingRates is doing that for you, finding price estimations of the hottest car at the Detroit Auto Show 2015, the 2016 Ford GT, to see what kind of freeze this hot ride would put on your bank account.
The Ford GT Cost Estimated at $250,000
The 2016 Ford GT has been the belle of the ball at the 2015 Detroit Auto Show. As an American-made supercar, the Ford GT grabbed a lot of attention at its unveiling on Monday. The aluminum and carbon fiber body is sculpted into a stunning style, and under the hood the GT wows with twin-turbo V-6 EcoBoost engine and 600 horsepower, reports CNET.
So how much will the new Ford GT cost? Autoweek reports that it and several other new outlets asked Ford executives and were unable to get a direct answer. But the executives did say the Ford GT would be comparable in price to its competitive set — cars that including the Lamborghini Huracan, priced at $237,000, up to the $298,000 Ferrari 458 Speciale. Overall the price of a 2016 Ford GT is expected to fall somewhere around $250,000.
But that’s a bit more than the $150,000 (about $180,000 in today’s dollars) the Ford’s last GT, the 2005 GT Retro special, sold for. A price jump of $180,000 to $250,000 is pretty steep, which is why some are projecting Ford will price its 2016 GT closer to $200,000. If the price comes in lower, as Autoweek puts it, “it’s not difficult to imagine Ford selling the entire planned production run — something it failed to do with the old GT.”
You Can Afford the Ford GT If You Make at Least $129,600 a Year
For most people, $250,000 is an insane amount of money to spend on a car. But for many car fans, the 2016 Ford GT has the visual appeal and raw power that would make it worth even a $250,000 price tag. But who could actually afford that much car?
Well, it depends on what guidelines for affordability you’re following. According to the TimeValue calculator, a five-year loan on a $250,000 car with an auto loan rate of 3.00% APR and a 20 percent — or $50,000 — down payment would cost the borrower about $3,600 every month (crazy, we know). If the borrower has absolutely no other debts, this $3,600 could account for the 33 percent of gross income that it is considered “safe” to put toward debt if he earns at least $10,800 in post-tax income each month, or $129,600 a year. And this is assuming he has enough savings for a $50,000 down payment.
Other guidelines recommend calculating how much car you can afford based on annual income. To be on the frugal side, look to spend 10 to 15 percent on a car, according to Lifehacker. A percent ranging from 20 to 25 would be the comfortable range for most people, while car nuts might think it’s worth the money to buy a car worth up to 50 percent of their annual incomes. Using that calculation, you’d have to make $500,000 a year to afford the $250,000 2016 Ford GT.
No matter how you look at it, only the very wealthy will be able to afford the 2016 Ford GT.