O/T 50%+ of car loans are 84 months!
10-29-2018, 11:15 AM
#46
A fair perspective but it's worthwhile remembering how the sub-prime mortgage meltdown led to catastrophic worldwide consequences for many who didn't care about how other people acquired their houses. It's quite possible that auto loans are moving down that same path.
10-29-2018, 12:15 PM
#47
Three Wheelin'
10-29-2018, 02:02 PM
#48
I never notice other brands. I notice FCA because I hear the advertising on the radio and they dealer alwayd have huge banners. I'm not surprise at all that Mitsubishi offers 84 months loans.
10-29-2018, 02:36 PM
#49
Gary
10-29-2018, 04:01 PM
#51
Three Wheelin'
10-29-2018, 08:46 PM
#52
Nordschleife Master
this exactly.
the majority of the people who are purchasing these cars this way aren't the financially savvy ones using these loans to their advantage. Instead, they are the types that are barely able to get their loans approved and/or can't afford higher monthly payments... but they still have to be seen or buy a brand new car, and hence fuel this type of longer term loan (lower monthilies) demand.
the majority of the people who are purchasing these cars this way aren't the financially savvy ones using these loans to their advantage. Instead, they are the types that are barely able to get their loans approved and/or can't afford higher monthly payments... but they still have to be seen or buy a brand new car, and hence fuel this type of longer term loan (lower monthilies) demand.
That is how you are supposed to use low interest loans and probably most people here understand that. We followed precisely this rationale when we paid cash for our Macan but took the 60 month 2.6% financing that BMW offered for our M3. But I suspect that most people taking 84 month loans on a $15K Kia do not have any investment portfolio. When they trade their upside down car after five years they get stuck with debt that they can only service if it is interest free or low interest. The problem happens when they run out of credit room and resort to high-interest auto loans (i.e. the "We approve all credit" dealers). Then it hits the fan.
Long term loans also work well for people like my retired FIL, who has a fixed income and tends to plan in terms of monthly expenses. It makes sense for him to keep his assets as liquid and as income-generating as possible.
Long term loans also work well for people like my retired FIL, who has a fixed income and tends to plan in terms of monthly expenses. It makes sense for him to keep his assets as liquid and as income-generating as possible.
11-01-2018, 04:56 PM
#54
Drifting
Unless it leaks. Then it's out on the road to soil out there.
I'm also proud of my driveway....