What's up with people having 84 month long car loans?

[LS1Rx7]

If the interest rate is low, why not defer taking the money out of your pocket, especially if you can use it to get greater returns somewhere else.
They tell you right in the paperwork how much you'll be spending in interest, read it and decide for yourself if you have a better use for that money

 

[plataoplombo]

Basically no ability to plan ahead. They just see a nice car in front of them and low monthly payments. A few years into the loan they'll be crying.

 

[Lubaolong]

I can't remember the amount of blowjobs my 48 month car loan has got me so I'm all good, but thanks for caring.

Hard to put a price on that. I don't even drive a super expensive car, but I've gotten so much attention and comments from strangers probably about once per week. Got a number from a 17-year-old McDonald's girl last week even.

 

[DC23]

Hard to put a price on that. I don't even drive a super expensive car, but I've gotten so much attention and comments from strangers probably about once per week. Got a number from a 17-year-old McDonald's girl last week even.

Keep it up, brother.

 

[Oblivian]

Ive seen 0% apr advertised over 72 months. I never buy new, so i dont know if its legit.

It is. A lot of the dealers have incentives as it entices to buy new. Although I've never seen 84 month car loans, I don't know why someone would get their panties in a wad about it. It's not like their equity position is great off of the lot on any vehicle at the start without a down payment.

 

[BillytheFish]

Once you're past your 20s you shouldn't have a vehicle payment.

so when you need a new car at 40 and think 'hmm, id love something nice for a change' and need $40,000 cash, you going to pay outright, or expect everyone to be able to?

 

[Oblivian]

Once you're past your 20s you shouldn't have a vehicle payment.

Yes, don't take advantage of incentives such as 0%, .9%, or 1.9% financing and have your money do less for you.....

 

[IIIIIIII]

It's crazy. A lot of people have this and they end up in an upside down loan after 5 years max. When did people become so bad with finances? Everyone is up to their eyeballs in debt and they don't know why. Living in an apartment and driving a Benz <45>

too many people only focus on the here-and-now. it's tough, even for me, to delay gratification. but if you do, you will reap the rewards later.

 

[KONG-D'SNT-TAP]

No, that's why you buy used and in cash. Leasing is just as fucking bad, if not worse because of restrictions they have on mileage and what you can actually do to the vehicle.

Why would I buy used when you can get a brand new car for a affordable monthly payment.

 

[Dirt Road Soldier]

Why would I buy used when you can get a brand new car for a affordable monthly payment.

Because you can get a perfectly good used vehicle for a fraction of the price? I paid 2 grand for mine 5 years ago, and it runs just as well as it did the day I bought it.

I mean sure, if you want something shiny and top of the line feel free to buy brand new if you want and can actually afford it. But for the average person, used is the best route.

 

[KONG-D'SNT-TAP]

Because you can get a perfectly good used vehicle for a fraction of the price? I paid 2 grand for mine 5 years ago, and it runs just as well as it did the day I bought it.

I mean sure, if you want something shiny and top of the line feel free to buy brand new if you want and can actually afford it. But for the average person, used is the best route.

You can lease a brand new car and not buy some used one even for people who are on more fixed budgets than I am.

 

[HunterSdVa29]

The entire modern capitalist system works on Debt
it's called Financial Capitalism, but really that just means debt. What makes it even worse is since Federal Governments/Central Banks tend to bail out larger corporations, those entities often reap all the benefits/profits and are also shielded from losses by taxpayers. Add in QE and Central Banks printing money just to buy stocks/equities to bolster their holdings, Circular debt loans amongst various countries (kinda like those companies that stemmed up buying Mortgage debt prior to the Crash), and it makes sense why the average person is leveraged heavily in debt.

We haven't had an Industrial based Capitalist system for a few decades now

It's also a huge reason why although life is getting better for every first world denizen on earth, the income gap is growing and wages are stagnating.

 

[Oblivian]

Because you can get a perfectly good used vehicle for a fraction of the price? I paid 2 grand for mine 5 years ago, and it runs just as well as it did the day I bought it.

I mean sure, if you want something shiny and top of the line feel free to buy brand new if you want and can actually afford it. But for the average person, used is the best route.

How old are you and do you have kids?

 

[Dirt Road Soldier]

You can lease a brand new car and not buy some used one even for people who are on more fixed budgets than I am.

And over the course of a 3 or 5 year lease, still spend far more than you would have on a used vehicle. Even on a cheap lease over under 200 a month, you are looking at 6500 just on payments over three years. Plus insurance costs, which are much higher on newer vehicles than they are on older ones.

Granted with used you can run the risk of higher maintenance costs, but some research into what you are buying and a minimum of not being stupid and preventative care can avoid most if not all of that.

How old are you and do you have kids?

I'm 36, no kids. Why?

 

[method115]

I went longer on this car loan than I wanted to but only an extra year. I only do 5 years but did 6 this time. Regret doing that but the car will easily last me that long so it's whatever. I also got a really good deal on it.

I already decided next time though I'm getting a corolla and going much cheaper. Something closer to 14,000. I'm not a car guy I don't give a shit about that kind of stuff or what I drive.

 

[KONG-D'SNT-TAP]

And over the course of a 3 or 5 year lease, still spend far more than you would have on a used vehicle. Even on a cheap lease over under 200 a month, you are looking at 6500 just on payments over three years. Plus insurance costs, which are much higher on newer vehicles than they are on older ones.

Granted with used you can run the risk of higher maintenance costs, but some research into what you are buying and a minimum of not being stupid and preventative care can avoid most if not all of that.



I'm 36, no kids. Why?

I lease and think it’s the best. New car every few years, low payments and you get rid of it before any major work needs to be done

 

[Oblivian]

I'm 36, no kids. Why?

Because your perspective will likely change. I honestly assumed you were younger. I see a lot of people in their 20's on here who are getting their financials in order that preach about all of this shit: never get a car loan, buy used, never rent a house, etc. Hell, I was probably one of them. A lot of that advice is wrong in many situations - plain and simple. Your perspective will probably change once you have kids.

You really think the vast majority of the public is better off in a cheap, used vehicle? Do I want to drive my kids across the country on vacation in something with horrible safety features? A lot of the new features come in very handy with kids too - self closing doors, built in DVD, etc. Also, if you buy new with some of the incentives (0% financing), it's really not a bad investment long term if you keep the vehicle for a while.

 

[SleepyBoy]

84 months, 7 years is a long time to pay on a loan.
Most people will screw themselves because they will trade in their car before 7 years, often underwater. Just save, set goals and get your self that thing you really want.

I would rather have a really nice car and a moderate house, because I have no kids and drive 20+k miles a year.

I am buying a house and a car soon. Making and saving a ton of money. I have resisted rushing in and buying a house before I had the 20 down payment, only 1-2 months and i am good. Just being patient is the key.

 

[Jim Cozad Jr.]

If the interest rate is low, why not defer taking the money out of your pocket, especially if you can use it to get greater returns somewhere else.
They tell you right in the paperwork how much you'll be spending in interest, read it and decide for yourself if you have a better use for that money

This...the people who really don't understand finance are the "debt is bad" people...

 

[13 others]

If its a dealer-financed 0% loan it makes sense to do. This type of loan is widely available to qualified buyers. In this scenario you retain more of the balance longer, which can be sitting in an interest bearing account each year, rather than giving it up sooner on a depreciating asset which will have the same value after 6 years regardless.

It never makes sense for the majority of people to buy a brand new car, even at 0 apr. The point really isn't about the apr, it's about the amount of $ you could be saving and using to build interest for yourself.

When I say never makes sense I mean financially. I'm also speaking about the average person that makes an average amount of $. Hell even if you make 100K$ a year it still makes no sense financially.