Auto loan craziness article

[svauto-erotic855]

The newest subprime loan industry is The Used Auto industry. I hate those kind of vultures as much as I hate Pawnbrokers, bail bondsman, wrecker drivers, and Pi lawyers.

[kingjason]

Has he ever heard of a lease?

One of my friends, who always averages about a 6k loss on a vehicle trade every other year for him and his wife, got talked out of his fairly new vehicles to get into a lease and not be upside down. Well two weeks ago he decided that after one year he was getting out of those crappy leases and buying new cars again. I bet he dropped 90k. He also just refinanced his house to remodel it.

I always bought my wife new shit every four to five years when she was working, but I like used odd stuff, so my three cars cost less than her one usually. Even though currently I have only a 06 Nissan I drive. At least I had the extra cars to sell to pay hers off when she dove out of the work force.

[bcoop]

You mean to tell me people spend foolishly, without fear of consequences? Blasphemy!

[Juiced4v]

I went 6 on my 18-F250

[The King]

This is why I buy used and I buy Toyota/Honda. Save money, lasts a realllly long time.

Wife's MDX is knocking on 150,000 and I haven't had anything major go out on it that wasn't planned.

Sounds so exciting and fun to drive.

Something exciting and fun to drive is often not worthwhile to have around here anymore thanks to gridlocked freeways.

1/3rd of auto loans are OVER 6 years. That's pretty damn crazy...I thought 6 years was pushing it already.

But I know loads of people that are smart and make decent money who just cant resist stretching themselves way too thin on this.

If I can get 0% on an auto loan I'll stretch it out as long as possible since it's their money being held up.

[JC316]

Incomes have risen at a sluggish pace in the past decade, but car prices have grown rapidly. New technological and safety features, such as larger and more sophisticated multimedia displays, have made even the most basic cars more expensive. U.S. consumers have also veered toward pricier rides such as sport-utility vehicles that tend to dominate auto showrooms. The result is that consumers are seeking bigger loans than ever to purchase a car.

Car prices really haven't gotten out of control, but people want all of the bells and whistles. My mom bought a 2018 Ford Fiesta SE hatch brand new. Power windows, locks, mirrors, backup cam, bluetooth, good stereo. This thing would have been considered beyond loaded back in the 90's. Averages 32mpg, and is comfortable enough for 4 adults. $14k out the door.

That's not unreasonable for a car by any means, but it's basic by today's standards. Heck, she could have gotten a base model for around 10K.

If I can get 0% on an auto loan I'll stretch it out as long as possible since it's their money being held up.

Ding ding ding. Why front your own money when you can use the banks for free?

[Ruffdaddy]

Something exciting and fun to drive is often not worthwhile to have around here anymore thanks to gridlocked freeways.



If I can get 0% on an auto loan I'll stretch it out as long as possible since it's their money being held up.

This is a really good point and the one exception. What I've found is that the 0% financing typically includes less rebates however.

So your purchase price is higher in the end.

[bcoop]

If I can get 0% on an auto loan I'll stretch it out as long as possible since it's their money being held up.

Sure... That said, I’d bet most of the people financing their vehicles for 7 years aren’t getting 0%. Isn’t it relatively rare to see 0% for 60 mos? Seems I see 36-48 much more frequently.


They’re probably also the type to keep rolling over negative equity, never paying a vehicle off before the terms are up.

[Craizie]

I had one of my dock hands get approved for a 60K F150 on a 9 year loan making $14 an hour. Luckily I was able to talk him out of it.

[line-em-up]

bro, let us have some copy and pasta over here.

Sorry. couldn't resist.

[mikeb]

Car prices really haven't gotten out of control, but people want all of the bells and whistles. My mom bought a 2018 Ford Fiesta SE hatch brand new. Power windows, locks, mirrors, backup cam, bluetooth, good stereo. This thing would have been considered beyond loaded back in the 90's. Averages 32mpg, and is comfortable enough for 4 adults. $14k out the door.

That's not unreasonable for a car by any means, but it's basic by today's standards. Heck, she could have gotten a base model for around 10K.

Maybe I'm in the minority but it seems to me that the trend toward taking out mega car loans to buy "all the bells and whistles" is a really bad idea.

Most of those bells and whistles are electronic - it will kill you financially if you have to have it fixed, and the electronic parts will dry up in just a few years because the components used to make the widgets will no longer be available.

These is one of the reasons that new cars no longer interest me. Price is another reason - $50k for a pickup truck? Insane.

[The King]

This is a really good point and the one exception. What I've found is that the 0% financing typically includes less rebates however.

So your purchase price is higher in the end.

One other exception I can think of is the necessity to carry full coverage on the vehicle during the loan period. Generally when the vehicle is paid off I drop the collision, and so far I haven't gotten burned by doing so.

[Craizie]

One other exception I can think of is the necessity to carry full coverage on the vehicle during the loan period. Generally when the vehicle is paid off I drop the collision, and so far I haven't gotten burned by doing so.

Really rolling the dice if you are in the metroplex IMO.

[jw33]

but what are my monthly payments?

[The King]

Sure... That said, I’d bet most of the people financing their vehicles for 7 years aren’t getting 0%. Isn’t it relatively rare to see 0% for 60 mos? Seems I see 36-48 much more frequently.

They’re probably also the type to keep rolling over negative equity, never paying a vehicle off before the terms are up.

The last time I financed was in 2017 through Honda, and their best rate offer at that time (0.9%) was good for up to five years. Looking at them today however, their best rate (1.9%) is limited to 24-36 months, so you are correct.