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

[BNB]

Wow just as bad as a balloon payment

 

[Rolling_trip]

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 .

Those years had double digit interest rates if I’m not mistaken.

 

[crippen]

Financing is a big deal now in the home renovation world. You can finance your new kitchen or deck or whatever completely outside of any second mortgage or equity loan. I have finance company’s calling me all the time trying to get my business. The finance company gives me my money and takes the loan. It’s crazy. There is absolutely nothing we can’t buy on debt.

 

[Cadcom]

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.

That's not condescending - That's just fact! I have helped 3 of my kids buy cars over the last few years. The ONLY question the sales weasel wanted to know was what kinda "payment" are we looking for. My answer was NONE! We are buying a car not a payment! I had to keep my kids focused on the actual cost of the car and not the easy to make "payment" they were selling. I mean it's only $225.00 a month, right?

 

[StuP]

That's not condescending - That's just fact! I have helped 3 of my kids buy cars over the last few years. The ONLY question the sales weasel wanted to know was what kinda "payment" are we looking for. My answer was NONE! We are buying a car not a payment! I had to keep my kids focused on the actual cost of the car and not the easy to make "payment" they were selling. I mean it's only $225.00 a month, right?

I agree, gimme gimme, the American way. On the rare occasions I buy from a dealer I always say I haven't decided if I want to finance, does it make a difference ? What am I looking to spend ? Anywhere between 10 and 20, (for example), something thing strikes me a decent deal.

I know salesmen are trying to make a living, but pushy ones who want to be my 'friend' can make me walk away.

 

[karlvv30]

I understand the disdain but why do y'all care so much about how others spend their money? I don't care if you take 15 years paying off your 100k truck as long as you aren't on welfare. None of my business.

 

[Captain Kaboom]

IMHO low interest rates (artificial or not) have been a factor in increasing the cost of new cars & homes. Finance companies have to stay in business, and with the low interest rates post-financial crisis, one of the ways to maintain their revenues is to increase the total capital borrowed. When interest rates climb, people are not going to be able to afford to buy these new cars and homes.

 

[harrycalahan]

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.

If you dont have the cash, you cant afford it.

 

[Hayata]

a record 6.3 million people are 90 days or more behind on their loans.



Repo man gonna be busy!

 

[sparked1]

I understand the disdain but why do y'all care so much about how others spend their money? I don't care if you take 15 years paying off your 100k truck as long as you aren't on welfare. None of my business.

I don’t think anyone really cares either. Your money, your prerogative. Just pointing out the rampant financial ignorance of people in general. We’re deliberately not taught how to manage finances and exercise self-control over instant gratification for a reason.