O/T 50%+ of car loans are 84 months!
10-24-2018 | 05:27 PM
#1
Thread Starter
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Joined: Aug 2007
Posts: 4,727
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From: Canada
O/T 50%+ of car loans are 84 months!
https://jalopnik.com/more-than-half-...nan-1829964502
In Canada over half the car loans are 84 months....seems an amazing length of time to me...you end up wth a seven year old car not worth too much.......
In Canada over half the car loans are 84 months....seems an amazing length of time to me...you end up wth a seven year old car not worth too much.......
10-24-2018 | 07:17 PM
#5
Drifting
Joined: May 2012
Posts: 2,716
Likes: 172
From: Toronto
Greed greed greed. A lot of this is also driven by shady dealers trying to match the lower payments of leasing and sell up customers to thousands of dollars in useless F&I office products on top of it - products that wouldn't apply to you if you leased.
Last edited by Pags993; 10-24-2018 at 07:53 PM.
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10-24-2018 | 09:33 PM
#8
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From: TO
Who cares as long as they are happy...The snob factor is out of control here. You do realize you will all be dead really soon so do what makes you happy. And no I don’t have a 84 month car loan before you ask but I wouldn’t care if I did . I’m pretty sure wherever you end up when you die doesn’t have credit score or debt to equity tests
10-24-2018 | 09:45 PM
#9
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From: TO
By allowing someone to declare bankruptcy, that bad debt is absorbed by the rest of us through higher costs for products and services. For example, say there is a guy who buys a $400K Ferrari or McLaren to hang out with Saturn Drives or participate in some dumb rally's and he ultimately can't afford it and spends God knows what else and he declares bankruptcy. Those losses need to be made up somehow. It's naive to think that people today can do whatever they want without leaving an impact on others.
10-24-2018 | 09:49 PM
#10
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From: Chicago, IL
Who cares as long as they are happy...The snob factor is out of control here. You do realize you will all be dead really soon so do what makes you happy. And no I don’t have a 84 month car loan before you ask but I wouldn’t care if I did . I’m pretty sure wherever you end up when you die doesn’t have credit score or debt to equity tests
I was young and foolish once too and took a 60-month loan out to buy a sports car when I was in my 20’s. I have since learned to establish better credit and buy only cars I can actually afford.
I’d imagine the 84-month loan is not unlike a 40-yr mortgage. Way too much interest.
10-24-2018 | 10:32 PM
#12
Race Director
Joined: Oct 2004
Posts: 11,188
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From: Ottawa, Canada
It's > 75% of those financing in our business.
>90% don't have any financial literacy. Don't understand compound interest. Don't understand the trade difference is what matters not that the other dealer is giving more or less for trade.
It's what keeps our economy growing. Debt.
>90% don't have any financial literacy. Don't understand compound interest. Don't understand the trade difference is what matters not that the other dealer is giving more or less for trade.
It's what keeps our economy growing. Debt.
10-24-2018 | 11:05 PM
#13
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Joined: Aug 2006
Posts: 2,606
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From: Montreal, Quebekistan
It's > 75% of those financing in our business.
>90% don't have any financial literacy. Don't understand compound interest. Don't understand the trade difference is what matters not that the other dealer is giving more or less for trade.
It's what keeps our economy growing. Debt.
>90% don't have any financial literacy. Don't understand compound interest. Don't understand the trade difference is what matters not that the other dealer is giving more or less for trade.
It's what keeps our economy growing. Debt.
Things get real bad when you start dealing with people who needed 2nd,3rd or 4th chance.
10-25-2018 | 09:49 AM
#15
Drifting
Joined: May 2009
Posts: 2,067
Likes: 116
From: Heidelberg, ON
Read this article on Google news yesterday....
https://www.cbc.ca/news/opinion/debt-opinion-1.4874956
...co worke rand her fiancee just bought a new Denali truck a couple months ago... He just finished school to be an electrician, she works 2 part time jobs (about 0.8FTE at a good union hospital job - probably $40K/yr)... I think the truck was $70K, probably $50-60K financed, they are planning a wedding for next year.
Luckily for them, they moved into a new house last year, her father is a general contractor, and built the house, and the BF (now fiancee) put some sweat equity into the build so they probably got a good deal, but probably are carrying a $100-200K mortgage on a new build in small town Ontario.
https://www.cbc.ca/news/opinion/debt-opinion-1.4874956
...co worke rand her fiancee just bought a new Denali truck a couple months ago... He just finished school to be an electrician, she works 2 part time jobs (about 0.8FTE at a good union hospital job - probably $40K/yr)... I think the truck was $70K, probably $50-60K financed, they are planning a wedding for next year.
Luckily for them, they moved into a new house last year, her father is a general contractor, and built the house, and the BF (now fiancee) put some sweat equity into the build so they probably got a good deal, but probably are carrying a $100-200K mortgage on a new build in small town Ontario.