84-Month Auto Loans Are Becoming More Common Because People Can't Stop Buying Trucks

[araomd]

https://jalopnik.com/84-month-auto-loans-are-becoming-more-common-because-yo-1825414883

 

[StuP]

Pile that debt high and wait for the crisis.

 

[Falcon1]

If you have to spread payments out over 7 years you can't afford it!! Not sure why that is such a hard concept to grasp for some people.

 

[Kahrnut]

Next up: 96 mo. loans.

 

[MRM]

I bought my last new car in 2012.
New tires and 49k miles.
Worth about 1/4 of what I paid.

I picked up a 03 town car with 93k for 6200
And a 02 sequoia 4x4 with 113k for 6600
No more car payments for me.

 

[crippen]

Wow! It looks like I can finally afford my dream truck. It’s a shame I refuse to borrow money. Guess my 20year old Chevy will have to do.

 

[sparked1]

Hate to sound condescending but someone who signs up for $1000/mo payment for 7 years on something that will be worth 30% of its original value at payoff and while still carrying a far-out mortgage is a certified dumbass- financially speaking, of course. Throw $1000/mo at your mortgage principal for 7 years and see how many years it shaves off the the term how many shiny new trucks worth it saves you in interest.

 

[GeauxLSU]

There was a time in this country when there was no such thing as a "mortgage" on a house. 5 year loan due in full. Yes you could refi but a 30 year loan was unheard of and when first proposed deemed financially irresponsible. We've certainly gone to the other extreme.

I don't have a car payment or a mortgage (I have a medical condition that apparently makes me allergic to debt) but last car I bought I got financing through the credit union for 5 years which I thought was absurd. Why did I do it? It was 0.9%. I did it gladly .

 

[BangBang]

Throw $1000/mo at your mortgage principal for 7 years and see how many years it shaves off the the term how many shiny new trucks worth it saves you in interest.

There’s no instant gratification in that plan though.

 

[the_great_white]

Because people can't stop overpaying is what they really mean.