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 ...
I did have a 6 year loan when I purchased a needed minivan. I kept the car for 12 years until it died.
SECU is offering a 120 month (yes 10 years) loan on vehicles.
Madness.
Cars are lasting longer than they used to, so longer terms are somewhat understandable.
But seven years?
Part of it is that nobody buys the standard four-door sedan anymore. Every vehicle I pass these days seems like it’s either a huge SUV or a Beemer.
If you’re reaching up for the status of a Lincoln Navigator on a middle-class paycheck you’re basically talking second mortgage.
Save up, pay cash, don’t buy new, keep it running. I’ve owned two cars in 44 years. It would be one car, if the first hadn’t been stolen.
Interesting. Thanks for posting. I haven’t had a car loan in nearly 40 years. My last one was a 1980 Ford Fiesta. Many on my used Hondas and Toyotas since have gone over 300,000 miles. My current 1996 mint condition Toyota Camry is almost at 200,000.
What type of car was the first?
Fiscal education is not happening.
Easy fixes
Buy a recent model car 1-2 years old and let the other guy take the hit for a new car.
Put money down, as much as you can afford
Get a loan with a credit union, in fact dump your “big box” bank and transfer to a credit union.
Buy less of a car, you really don’t need the huge tricked out BMW or Everything package truck. Get over your ego, and drive a regular good car.
NEGOTIATE the price on that used car, it will go down at most places to a real price, and you should have the Blue Book value ahead of time to know where you should be. If it is not a good deal, WALK AWAY, be an adult. You decide on what happens.
There are tent cities now in every major city. I saw pictures on them in Minneapolis this week. Long blocks of tents lining streets.
Can you imagine living in a tent in Minnesota? Favela living would be a step up from what we've got going on.
It’s hardly more alarming than auto leases, or the ‘subscription service’ from Volvo.
Datsun 280Z
I wonder if this push to insanity has something to do with lease cars being more profitable?
People buy what people want. I find it amazing that Ford no longer even makes a standard four-door sedan anymore. Not a small car, not a mid-size, not a big car. Not even any car. Period. Except the Mustang.
Everything else is CUV/SUV/truck/van.
I have gone close to 200,000 k. At that point the repair bills to keep the car going did not make financial sense.
Cars these days are loaded up with every possible option as standard. The cost goes up with every addition.
My first automobile was a standard 4 speed, no AC, No radio, No power steering, No power brakes, No carpet, No power windows, just a basic automobile. Cost? $2500, in 1974. That would be $13,200 in today’s money.
You couldn’t find a new car at that price anywhere...............
When you pay exorbitant taxes to support the third world and your own non-productive classes it’s hard to amass enough to buy the overpriced vehicles we have today.
He's retired and IRA will remain untouched for 5 years.
What will be able to pay off in three years? That should be your price limit on the car you buy.
Ideally, your price limit on the car you buy should be, what can you pay cash for.
A car that used to be $6000 in 1974 is now $60,000...............
Recently I bought a used 2007 Honda Accord with low miles from a private owner. Nicely priced and paid cash, no payments with its interest. Minor dings and runs great. No Bluetooth access on stock radio but I can add in an aftermarket adapter. Can I afford a new car? Yes. Do I want to fork over $25/k or so? Nope— not on a depreciating asset.
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