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

[Dirt Road Soldier]

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

And that's fine, but I stand by my opinion. Although I may be a bit biased as my choice in vehicles runs closer to 'collectors plates' age than new. My daily driver is 41 years old for example.

 

[Cantalope]

I'm 41 and have only had 3 cars in the last 20 years. I buy old fleet cars that get retired at 50,000 miles from the company I work at. I also get 20% off blue book value.

 

[13 others]

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

It isn't about the interest rate. It's about dropping 40K plus on a brand new car that's worth a fraction of its purchase price 7 years later. Imagine what you could do with your $ if you just bought used and invested the difference of what you would have spent for a new vehicle. 84 month car loan is insane..because you end up owing more on the car than it's worth very quickely.

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

No. Just no. Lol

 

[DrDune]

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

 

[Jim Cozad Jr.]

It isn't about the interest rate. It's about dropping 40K plus on a brand new car that's worth a fraction of its purchase price 7 years later. Imagine what you could do with your $ if you just bought used and invested the difference of what you would have spent for a new vehicle. 84 month car loan is insane..because you end up owing more on the car than it's worth very quickely.

No. Just no. Lol

It actually is about the interest rate...

 

[rearnakedchoke]

Damn. I am now more confused than ever. Haha

 

[Jim Cozad Jr.]

Is that Dave Ramsey, the finance god of poor people?...

 

[DrDune]

Is that Dave Ramsey, the finance god of poor people?...

It is . He patently disagrees with your position.

 

[Dirt Road Soldier]

Your perspective will probably change once you have kids.

Nah, if I have kids I'll just pull my hunting rig out of mothballs and use that. 81 Suburban, no safety features to speak of outside of seat belts but the damn thing is a tank so I wouldn't be worried unless I got hit my something much, much larger than me.

Damn. I am now more confused than ever. Haha

Think of it like this. When buying a vehicle, you have to ask two questions. Can I afford New? Do I want New? If yes to both, new is best for you be it leasing or buying. If no to either, you're better off buying used in your price range.

 

[kahiljabroni]

It's not only about the term and interest rate but the sticker price. How much $ do you want to invest in an asset that loses half its value in 4 years? You might be able to make the 84 month payment on that new 50k truck but in that 7 year period you've turned 50k into 15k. Shits horrible for your net worth. Should definitely not buy a vehicle that is more than half of your take-home pay annually. If you bring home a grand a week, that's 52k a year, you should def not buy a car over 26k.

 

[Organic Damage]

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>

As a fellow apartment-dwelling Benz driver I approve this message.

 

[PG29 red0 Jr]

How can we not be in debt? What am I supposed to save money until I'm 50 to buy a house?

 

[13 others]

It actually is about the interest rate...

.. lol

 

[clutchCAT420]

Subaru are the best bang for buck to buy new. These car are worth if you have a family.

 

[Oblivian]

It isn't about the interest rate. It's about dropping 40K plus on a brand new car that's worth a fraction of its purchase price 7 years later. Imagine what you could do with your $ if you just bought used and invested the difference of what you would have spent for a new vehicle. 84 month car loan is insane..because you end up owing more on the car than it's worth very quickely.

No. Just no. Lol

You are going to end up owing more than the car is worth quickly on any new car purchase. I mean it's obvious you are going to be paying more interest. It also should be obvious that they are attracting people with a lower payment into buying something they can't really afford. With that said, if I see an 84 month car loan incentive (ex. 0% - 1.9%) on a vehicle I'm interested in buying, I'm going to take a look. That's a hell of an incentive. My money can earn better elsewhere. And lol at all debt is bad. You don't get it.

 

[13 others]

You are going to end up owing more than the car is worth quickly on any new car purchase. I mean it's obvious you are going to be paying more interest. It also should be obvious that they are attracting people with a lower payment into buying something they can't really afford. With that said, if I see an 84 month car loan incentive (ex. 0% - 1.9%) on a vehicle I'm interested in buying, I'm going to take a look. That's a hell of an incentive. My money can earn better elsewhere. And lol at all debt is bad. You don't get it.

I don't recall saying all debt is bad, if I did I would like to see a quote. Majority of people in this thread are missing the point. I'm advocating against buying new, period. You're nuts to buy any new car on 84 month term. Its 0 percent interest because the interest is already built into the price. 0% is a marketing scheme to get you into a brand new vehicle on 84 month term. You say your $ can earn better elsewhere so why the fuck are you buying a depreciating asset over 84 months? LOL. That argument doesnt make any sense. There is absolutely no way to defend any purchase of a new vehicle on a finance term longer than 4 years. It's fine to buy a car on 84 months if you want. Doesnt mean you're stupid but it does mean you're bad with your $.

 

[Beaver Brownlee]

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?

I just traded in my old one and paid the $5k difference. Same as I do year year or two.

 

[Oblivian]

I don't recall saying all debt is bad, if I did I would like to see a quote. Majority of people in this thread are missing the point. I'm advocating against buying new, period. You're nuts to buy any new car on 84 month term. Its 0 percent interest because the interest is already built into the price. 0% is a marketing scheme to get you into a brand new vehicle on 84 month term. You say your $ can earn better elsewhere so why the fuck are you buying a depreciating asset over 84 months? LOL. That argument doesnt make any sense. There is absolutely no way to defend any purchase of a new vehicle on a finance term longer than 4 years. It's fine to buy a car on 84 months if you want. Doesnt mean you're stupid but it does mean you're bad with your $.

Most people in this thread are missing the point because you are horrible with your argument. Your thread should have a title about buying new, not ranting about an 84 month car loan.

And lol at your argument on the 0% financing. You really think it would be a better decision to take the cash discount on a new vehicle vs. financing at 0% over 7 years? And you are trying to preach to people about finance? Lol - wow.

 

[13 others]

Most people in this thread are missing the point because you are horrible with your argument. Your thread should have a title about buying new, not ranting about an 84 month car loan.

And lol at your argument on the 0% financing. You really think it would be a better decision to take the cash discount on a new vehicle vs. financing at 0% over 7 years? And you are trying to preach to people about finance? Lol - wow.

Wtf are you talking about lmao. Go ahead man buy a brand new car over 7 years thinking you're smart. Sorry dude. What cash discount are you talking about? Why the fuck would you buy a new car in cash. Another thing there isn't a cash discount for buying in cash unless you're talking about saving interest. Dealers want you to finance because they get a % from your loan. Wake the fuck up and read a book. Jesus christ. Like convincing flat earthers that the earth is round. Good luck to you, you'll need it.

 

[Lubaolong]

Anyone who doesn't buy a Tesla needs to have their head examined.

Model 3 is a family sedan. It's the safest car by far on the road. It looks cool. Very affordable. Tons of super insane tech features. Don't have to pay for gas. And it's super fast. Wasn't paying attention last night at hit 110 mph on the way home from work wtf. Model 3's can beat these high end cars in 0-60 times:

Aston Martin Vantage

Audi R8 GT

Bentley Continental GT3 R

BMW M6 Coupe Competition

Chevrolet Camaro ZL1 1LE

Ferrari 458 Spider

Lamborghini Huracán LP 580-2 Spyder

McLaren 540C

Features are continuously being updated. Just got a 5% boost to power (top speed, accerlation) earlier this month. How often has other car manufactures said, "Hey, let me upgrade your car for free to make it faster"? Don't remember where you parked or don't want to walk in the rain? No problem. Another one of the cool newer features