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

[StuP]

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 largely agree, the problems start when people are upside down on loans and defaults. Both have a knock on effect.

 

[GeauxLSU]

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 personally don't care how any individual chooses to be fiscally irresponsible. As a career finance person I'm probably more financially conservative than 95% of folks. But I DO care how tens of millions of Americans irresponsibly spend their money. Last time they did that, it cost all of us, a lot!

 

[GeauxLSU]

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.

The fact basic personal finance isn't required for graduating seniors isn't an accident it seems.

 

[karlvv30]

I personally don't care how any individual chooses to be fiscally irresponsible. As a career finance person I'm probably more financially conservative than 95% of folks. But I DO care how tens of millions of Americans irresponsibly spend their money. Last time they did that, it cost all of us, a lot!

An individual doing anything didn't cause crap. That was caused by the gubment getting involved and banks being irresponsible. The individual has zero affect.

 

[Cadcom]

An individual doing anything didn't cause crap. That was caused by the gubment getting involved and banks being irresponsible. The individual has zero affect.

Who was the banks loaning money to? I don’t think it was the gubmint financing $500,000 homes on a combined $90k income with subprime credit scores. That was the “individuals” (aka dumbasses)

 

[woodstock]

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.

One huge affect is they drive up vehicle prices for everyone else, which enlarges the number of people taking out stupid loans, which drives up prices, which enlarges the number of people.... Well you get the idea.

No payment for me, I save up then buy. Duh.

 

[JWC]

Let me play devil's advocate.....

If the lenders want to offer long term financing, with lower than normal rates, I say let them have at it. I don't care if the lender ties up money for a long term on a vehicle. It is their potential loss. Frankly, it must be fairly lucrative, most lenders in the auto business will do it. The lenders would not do it at all if it cost them money.

To those who worry about the borrower be tied to a long term debt, well, I hate to break it to you, but most either re-fin on a newer vehicle or turn the vehicle in. Yeah, they will be "in the bucket" when they re-fin, but they must not care because they do it often. Most will say, turning a vehicle in will ruin their credit. Again, hate to break it to you fine upstanding borrowers, having bad credit or even filing bankruptcy does not carry the negative weight it used to carry. Yeah, if you have bad credit some lenders will not finance them, and yeah, if they have a bankruptcy it will affect who will and will not finance them for anything, and yeah it will have an adverse effect on their ability to purchase a house,.....however, there are lenders that will lend to them and will continue to do so because it is profitable even with the loss potential.

So, worry about what your finances and less about those whose finances you cannot control. Teach your children, friends and others about being financially responsible. No one will teach them if you don't.

Whew, thanks for letting me play devils advocate.

 

[sparked1]

An individual doing anything didn't cause crap. That was caused by the gubment getting involved and banks being irresponsible. The individual has zero affect.

I have to disagree. That’s like saying doctors are the only ones responsible for an individual’s opioid addiction. Personal responsibility is always a factor.

 

[sparked1]

Let me play devil's advocate.....

If the lenders want to offer long term financing, with lower than normal rates, I say let them have at it. I don't care if the lender ties up money for a long term on a vehicle. It is their potential loss. Frankly, it must be fairly lucrative, most lenders in the auto business will do it. The lenders would not do it at all if it cost them money.

To those who worry about the borrower be tied to a long term debt, well, I hate to break it to you, but most either re-fin on a newer vehicle or turn the vehicle in. Yeah, they will be "in the bucket" when they re-fin, but they must not care because they do it often. Most will say, turning a vehicle in will ruin their credit. Again, hate to break it to you fine upstanding borrowers, having bad credit or even filing bankruptcy does not carry the negative weight it used to carry. Yeah, if you have bad credit some lenders will not finance them, and yeah, if they have a bankruptcy it will affect who will and will not finance them for anything, and yeah it will have an adverse effect on their ability to purchase a house,.....however, there are lenders that will lend to them and will continue to do so because it is profitable even with the loss potential.

So, worry about what your finances and less about those whose finances you cannot control. Teach your children, friends and others about being financially responsible. No one will teach them if you don't.

Whew, thanks for letting me play devils advocate.

Im not at all against using credit wisely. It exists for a reason and you can actually use it to come out ahead. But the few % of people that will use it to their advantage are colossally dwarfed by those who won’t and will pay interest and fees through the nose and remain in perpetual debt. Yes, it’s very profitable.

 

[quikstang347]

As most of you know I am a General Sales Manager for Harley Davidson and everyday I see people buy a new big shiny Harley and ad several thousand dollars in accessories then finance it out to 84 months sometimes at 22.99% they put the lowest money down they can, Then come back in less than a year wanting to trade and lower there payments, Not likely to happen but they find a way to buy another and trade it in , increasing there payments. I seen one customer buy a new bike and pay 1100 month for 84 months. Instant Gratification is a Mother F . this is the world we live in and why the economy and peoples values are the way they are.