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 ...
3 years was the longest I ever financed a new car.
Beware of some used cars. In the olden days, if you had a wreck, the insurance company would issue a “Salvage title” and send the auto to the wreckers in Southern Missouri.
There, they would splice several wrecked cars together, clean them, repaint them, roll back the odometer, then send the car down into Arkansas where for $50 dollars, they could get a new clean title showing the car had never been wrecked or abused, and “Only driven to church on Sunday by the salesman’s grandmother.”
It was years before we found out this scam. Even “brand new” cars often showed repainting and bondo in some areas.
“...good looks and performance...”
Agree, however if I am not mistaken, it had severe rust issues. Similar to the ‘57 Ford (rocker panels).
“Every vehicle I pass these days seems like it’s either a huge SUV or a Beemer.”
Odd. Where I am the vast majority of cars are small to medium size crossover SUVs. Like my latest, a Honda Passport, which is now a mid-size SUV. We also have a 10 year-old Nissan pickup and a 14 year-old Murano.
If you are ever offered free money, take it.
My wife and decided years ago to live debt free, including paying cash for our next house. We’re in our sixties, getting ready to retire. The dealer did offer us a 0.0% loan, which I had for my last car, bought several years ago.
A car that used to be $6000 in 1974 is now $60,000............…
Not true. Those aren’t even close to being similar cars.
Dave Ramsey is right - the more motors you have in your house, chances are, the poorer you are.
I work in a company selling capital equipment to factories. We measure utilization and our customers demand 85% utilization. Think about the utilization of your car. Even if you use it every day to get to and from work, it’s still sitting around doing nothing most of the time. Most people would be lucky to get 5% utilization on their MAIN car!
The Roadmaster didn’t. It had a custom satin black job with a red trim stripe. I had a 94 Caprice Wagon (both cars with LT1 engine) that was cream with fake wood. Transmission gave out just before move fron WI to GA. Had to let Wilma go.
The final cost after 7 years must be interesting
It is the young generation mind set - They want it good and they want it now.
Have you seen the young’uns barely in their mid- or late 20s driving a super big luxury SUVs with all the gadgets?
It couldn’t have been all those people have super rich parents.... just saying.
The sticker price on my 2005 Altima back then was at least $6,000 more than the sticker price on the 2019 Sentra. But at this point in my life, I don't need a more expensive car, I just need one that will get me to the grocery store, and doctor appointments, along with visits to my sons. I'm in central NY State. My oldest lives a couple hours away. My youngest lives in Indiana. Since I didn't want to drive my old car out there for fear it would break down, I was renting cars whenever I went out there. At least now I don't have to do that anymore, and I'll definitely be able to stay within the 12,000 miles a year limit on the lease.
Yes and no.
Cars are on the road longer, but people are actually keeping them for LESS time.
What's changing is that cars are being sold repeatedly to new owners over the course of the 12+ years they are on the road. The last owner is often an illegal immigrant or a U.S. citizen who can't afford anything more than a $200 car, and is not shy about driving it illegally anyway.
I am in the process of buying a new company vehicle right now, and the sales rep. at the dealership was actually surprised that I'm actually BUYING it. He said something like 80% of the new vehicle transactions at his dealership are leases, not purchases.
No more Taurus Sedans?
I have a 2004 Dodge Ram with 288,000. I have paid out approximately $13,000 in major repair bills starting at 160,000 miles in 2013. $7,000 new fuel injectors (160K), $4,000 for complete new front because the U-joints and drive lines can’t handle the torque, and $2,000 for new manual transmission clutch.
I am limiting its use to strictly hauling hay and dreading the upcoming fuel injector replacement. Dodge says their good for 140K-170K, so I have to save my beans to pay for those again.
Since I graduated college in 1991 I have purchased exactly 4 cars. A 90 jeep wrangler in 1991 for 14k which I battered to hell but sold in 2004. A 1966 Toyota FJ40 for 4k that I bought in 1998 and still drive extensively. A 1996 Ford Taurus for 2k in 2004 for puttering around which I sold in 2014, and a 2000 Lexus LX470 in 2011 for 10k and drive extensively.
Not sure where you got that idea. If anything newer cars are made to be disposable these days after 10-15 years. Especially American made cars. I have 3 cars, two over 20 yo and one just under 20. They hold up better than new cars. Yes, I do have to put some effort into keeping them maintained, and occasionally put a few serious dollars into them but nothing like a $400 a month payment 12 months a year plus full coverage insurance and 5-10 times higher yearly registration costs.
If you want a newer car; buy one that has low miles and is over 4 years old. It will cost half of what it was new and when a new car starts at $30k and new trucks start at $45k; that's a significant chunk of change. If warranty is an issue then get one that's good until the car is 20 years old. Just be aware of the fine print and document all maintenance with receipts. Also; never buy a car with a salvage/rebuilt title unless you know exactly what happened and the extent of the damage. Problems can develop months or even years later due to accidents and of course; never buy a car that has been flooded.
Sad to say; most Japanese made cars hold up much better than American made these days. It wasn't always like this. European made cars are the worst investment. They drop in value faster than a lead balloon and they cost a fortune to maintain. Same with luxury cars in general. It really pays to be an informed shopper when it comes to cars. Trucks (domestic and foreign) hold their value better because they are generally built better.
If you need a loan longer than 5 years, you cannot afford the vehicle.
I would argue that huge SUV’s are not all that common. Much more common is a small scaled down SUV with a tailgate. I recently (last week) made the observation on a long trip on the interstates. They all look alike except for the logo
Back in 1967, I bought a VW station wagon. That was way ahead of it’s time. Everybody and theri brother including Lexus, Mercedes and BMW are selling vehicles of that size. At the time, it was considered small.
I also bought a somewhat larger Volvo wagon. It was a real rocket with standard transmission and dual carburators. It really moved. Today, it would be the equivalent of a Honda Pilot. Somewhat larger but smaller than a 60’s Deeetroit station wagon.
While making these observations, I was driving my Sprinter van which will almost contain one of the little cars
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