Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

The Seven-Year Auto Loan: America’s Middle Class Can’t Afford Its Cars
Wall Street Journal ^ | October 1, 2019 | Ben Eisen and Adrienne Roberts

Posted on 10/03/2019 7:39:42 AM PDT by C19fan

Walk into an auto dealership these days and you might walk out with a seven-year car loan.

That means monthly payments that last well past when the brake pads give out and potentially beyond when the car gets traded in for a new one. About a third of auto loans for new vehicles taken in the first half of 2019 had terms of longer than six years, according to credit-reporting firm Experian PLC. A decade ago, that number was less than 10%.

(Excerpt) Read more at wsj.com ...


TOPICS: Business/Economy
KEYWORDS: buyingcars; buyingvehicles; carloans; cars; vehicleloans; vehicles
Navigation: use the links below to view more comments.
first previous 1-2021-4041-6061-80 ... 161-173 next last
To: twister881
Save up, pay cash, don’t buy new, keep it running.

That trick doesn't work in the rust belt. My wife's '73 Dodge Dart rusted where the torsion bars hold the suspension... cut the fuel line. My '76 Dodge Dart rusted off at the rear axle. For3 5 years I followed your approach, just going through more cars, and buying down south when I could.

On not so old cars, repairs can be prohibitively expensive. Blown head gasket on a 1999 Buick Century hardly worth tending to.

I just parted with my beloved 1994 Buick Roadmaster station wagon, there being no way I could affordably get it to pass emissions (vintage isn't an option on insurance when there aren't more cars than drivers in a household). That beauty went to someone in Tucson who does his own work.
41 posted on 10/03/2019 8:08:32 AM PDT by Dr. Sivana (Sutor, ne ultra crepidam--Appelles of Kos)
[ Post Reply | Private Reply | To 5 | View Replies]

To: C19fan

I recently bought a slightly used car from a dealer. I told the manager I was paying cash and asked if that qualifies me for a price reduction. He looked confused, then said “We would much prefer you financing the purchase through us.” Times have changed.


42 posted on 10/03/2019 8:09:43 AM PDT by Huskrrrr
[ Post Reply | Private Reply | To 1 | View Replies]

To: C19fan

My gramps drives an 18yo SUV - takes care of it meticulously. Looks and runs great.


43 posted on 10/03/2019 8:09:58 AM PDT by SkyDancer ( ~ Just Consider Me A Random Fact Generator ~ Eat Sleep Fly Repeat ~)
[ Post Reply | Private Reply | To 1 | View Replies]

To: twister881

“...Datsun 280Z...”

Such a badass little road racer in its day... good looks and performance.

Buddy of mine had the 240Z, with a worked engine. It was a damned road rocket.


44 posted on 10/03/2019 8:10:21 AM PDT by NFHale (The Second Amendment - By Any Means Necessary.)
[ Post Reply | Private Reply | To 11 | View Replies]

To: C19fan

The rate of increase for the price of cars exceeds the rate of increase of income and inflation due to too many regulations.


45 posted on 10/03/2019 8:11:16 AM PDT by fruser1
[ Post Reply | Private Reply | To 1 | View Replies]

To: Huskrrrr

I got .9% financing for 6 years!!! Why deplete my cash?


46 posted on 10/03/2019 8:11:41 AM PDT by central_va (I won't be reconstructed and I do not give a damn.)
[ Post Reply | Private Reply | To 42 | View Replies]

To: C19fan

Local Ford dealer adverts a truck for 40 grand, new of course. Down the road you can buy a nifty travel trailer you can live in for half the price.


47 posted on 10/03/2019 8:11:42 AM PDT by SkyDancer ( ~ Just Consider Me A Random Fact Generator ~ Eat Sleep Fly Repeat ~)
[ Post Reply | Private Reply | To 1 | View Replies]

To: C19fan

The reason for this is that most car salesman sell on monthly payments.

Anyone remember “balloon payments”? Monthly payments of $99 for 35 or 47 months and then the last payment of $20,000.

NEVER buy a car on “monthly payments”. ALWAYS buy on “cash difference”. My car and how much money, we can talk payments later.

I paid too much, but I got FREE SHIPPING!


48 posted on 10/03/2019 8:11:49 AM PDT by faucetman (Just the facts, ma'am, Just the facts)
[ Post Reply | Private Reply | To 1 | View Replies]

To: RatRipper

***Makes my gut hurt to think about paying $40K+ to buy a car or pick up.***

I remember 1969, when a new basic pickup truck could be had for #1999.00!

I choked ten years later, when they reached $5,000 for a new basic truck.


49 posted on 10/03/2019 8:12:14 AM PDT by Ruy Dias de Bivar
[ Post Reply | Private Reply | To 32 | View Replies]

To: twister881
Save up, pay cash, don’t buy new, keep it running.

Done. Just bought a used Hyundai Santa Fe and paid cash. My travels are very low mileage and I expect to have this one for a long time.

50 posted on 10/03/2019 8:12:23 AM PDT by Bloody Sam Roberts (Elitist Liberals have no idea the hunger and strength of the beast they have uncaged.)
[ Post Reply | Private Reply | To 5 | View Replies]

To: Dr. Sivana

Did the Buick Roadmaster have the faux wood paneling? I luved that.


51 posted on 10/03/2019 8:13:09 AM PDT by C19fan
[ Post Reply | Private Reply | To 41 | View Replies]

To: twister881
Datsun 280Z

Ooooh...sweet.

52 posted on 10/03/2019 8:13:13 AM PDT by Bloody Sam Roberts (Elitist Liberals have no idea the hunger and strength of the beast they have uncaged.)
[ Post Reply | Private Reply | To 11 | View Replies]

To: C19fan

If you have an auto that works reliably, keep it. Keep it running well. You may need it. You will not want to shell out for a new one; cost will be prohibitive.


53 posted on 10/03/2019 8:13:21 AM PDT by Rapscallion (If they are not for Trump, they are against him. Fire them.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Dr. Sivana

Understand, you’re doing the best possible, given conditions. I’ve had the luxury of living mainly in warm weather, Florida & California.


54 posted on 10/03/2019 8:14:18 AM PDT by twister881
[ Post Reply | Private Reply | To 41 | View Replies]

To: Haiku Guy
Be realistic about what you need, but if you really need air conditioning, include it.
Realistically, the driver of the car is its most critical component. Adequate environmental control for that critical component prevents unnecessarily degraded performance of that critical component.

If you don’t buy A/C, you “save money” - but risk money, and more - much more.


55 posted on 10/03/2019 8:14:27 AM PDT by conservatism_IS_compassion (Socialism is cynicism directed towards society and - correspondingly - naivete towards government.)
[ Post Reply | Private Reply | To 21 | View Replies]

To: Huskrrrr

The dealer will get a kick back for financing from the financial institution backing the loan.


56 posted on 10/03/2019 8:14:47 AM PDT by C19fan
[ Post Reply | Private Reply | To 42 | View Replies]

To: central_va

Same here. Just bought wife a new Mazda. 5 years .9% interest. That’s almost free money. Even if I took the entire time to pay it off (which I never do), only $400 interest. I can put the $20k to use making money somewhere else.

We always do home upgrades and remodels through Lowe’s with 18months no interest. Been doing it for 15 years and never paid a dime of interest.


57 posted on 10/03/2019 8:15:10 AM PDT by okkev68
[ Post Reply | Private Reply | To 46 | View Replies]

To: Ruy Dias de Bivar

My first car was a ‘72 VW bug. Paid $700 cash. Yard mowing money and before I had a driver’s license. Ran it hard for 7 years. Sold it for $1500. Best car deal of my life.


58 posted on 10/03/2019 8:15:21 AM PDT by Texas resident (Democrats=Enemy of People of The United States of America)
[ Post Reply | Private Reply | To 49 | View Replies]

To: C19fan

Bad Headline. Should read: People are buying cars they can’t afford.


59 posted on 10/03/2019 8:15:26 AM PDT by SaxxonWoods (The internet has driven the world mad.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: twister881
Datsun 280Z.

Too bad they made a convertible Z car.

This is an example of a very expensive conversion Z spider


60 posted on 10/03/2019 8:17:18 AM PDT by central_va (I won't be reconstructed and I do not give a damn.)
[ Post Reply | Private Reply | To 11 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-2021-4041-6061-80 ... 161-173 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson