car notes bout to be da new housing bubble VOL. NTers paying BMWs off in 73 months

[ninjahood]

[h1]Car Loans: The Borrow Time Gets Longer And Longer[/h1]

By Bertel Schmitt on April 9, 2013



When Lee Iacocca was a Ford regional manager, he helped pioneer auto loans. Consumers could buy a 1956 Ford for 20% down and $56 a month. The loans were paid off in just 36 months. In the final quarter of 2012, the average term of a new car note stretched out to 65 months, says Experian. 17% of all new car loans in the past quarter were between 73 and 84 months. A few were as long as 97 months. This trend bears huge risks for consumers and industry, says the Wall Street Journal.

The average price of a new car is now $31,000, up $3,000 in the past four years. To keep payments under $500 as month, loan terms get longer and longer. Says the Journal:

“Such long term loans can present consumers and lenders with heightened risk. With a six- or seven-year loan, it takes car-buyers longer to reach the point where they owe less on the car than it is worth. Having “negative equity” or being “upside down” in a car makes it harder to trade or sell the vehicle if the owner can’t make payments.

Car makers have mixed feelings about long-term loans. They allow consumers to buy more expensive—and profitable—cars. But long loans may keep some people from replacing their cars, cutting into future sales.”

http://www.thetruthaboutcars.com/20...twitter&utm_medium=twitter&utm_source=twitter

 

[joshuatree2192]

97 MONTHS!!!! DAMN People keep trying to buy stuff they can't afford.

 

[ninjahood]

97 MONTHS!!!! DAMN People keep trying to buy stuff they can't afford.

 

[olx9o]

me financing? nope not happenin. owning a car couple years old and watching operation repo wit a smile on ya face the best feelin

 

[105950]

lease FTW

 

[ninjahood]

lease FTW

not sure if serious....

 

[crazy ebw]

not sure if serious....

Paying off the car you have and driving it to the ground FTW.

 

[retro23j]

97 MONTHS!!!! DAMN People keep trying to buy stuff they can't afford.

 

[105950]

not sure if serious....

Serious.  Have been leasing my entire adult life and plan on doing it forever.  I am financially able, and that new car smell every three years does not get old.

 

[jking0821]

Paid for my corolla in cash. Cars are a terrible investment in theory they all do the same thing...get you from point A to point B. Never understood why some one pays 100k for their car with leather interior and "would grain" and then drives 100mph on I-95....i figured you would drive in the slow lane so you could stay in your luxury car as long as you can and enjoy what you paid for.

Side bar: Girl i know bought a 2003 3-series for 9k it had 70k miles. She put like $500 down....she has refinanced the car 2 times already and still owes $7500...she has had the car for 1.5 years now....but her long time bf is a BMW mechanic....and she LOVES BMWs and its her baby and its on IG every day...so its ok.....idiots

 

[antbanks81]

:x

http://home.howstuffworks.com/real-estate/mortgage2.htm

View media item 356078
Things change over time. They have to make these things more affordable to the masses. If nothing changed, home ownership wouldn't even be as high as it is.

 

[qtnettles]

Signed a 60 month finance but paid my car off in 44. I have no plans of ever signing anything longer than 60. 72 and 84 is just the crazy the amount of interest you would pay would reach 25% of the cars total value.

 

[al audi]

if you cant pay off your car in 48 at the most

its out of your means imo

 

[fraij da 5 11]

Never made a car payment in my life... On my 3rd car now.

92 Camry starter car

99 Saab 9-3 SE Turbo

2006 Subaru Legacy

Probably stay away from car payments until I buy a baby mover in a few years... The new Ford SUV's look like good options and I'll probably buy used.

 

[ricky409]

I'm sure that 97 month note will not be fulfilled.

Long lease = smaller payment.

Trade it in when you're done with it or keep it as a second car...

Dont think this will have the same effects because the housing market had private companies backed by government backed securities ...

No car company packages and sells subprime car loans in hopes of the value going up ... and defaulting on a car doesn't incur as many losses.

 

[al audi]

Paid for my corolla in cash. Cars are a terrible investment in theory they all do the same thing...get you from point A to point B. Never understood why some one pays 100k for their car with leather interior and "would grain" and then drives 100mph on I-95....i figured you would drive in the slow lane so you could stay in your luxury car as long as you can and enjoy what you paid for.

youre that rare breed of guy who doesnt care about cars.

 

[tomdiginson]

97 months :x

 

[finnns2003]

I'm not surprised though. Half of these folks out here with luxury cars have $800+ payments unless they go for the 72/84 month financing.

 

[sreggie101]

Paid for my corolla in cash. Cars are a terrible investment in theory they all do the same thing...get you from point A to point B. Never understood why some one pays 100k for their car with leather interior and "would grain" and then drives 100mph on I-95....i figured you would drive in the slow lane so you could stay in your luxury car as long as you can and enjoy what you paid for.

Side bar: Girl i know bought a 2003 3-series for 9k it had 70k miles. She put like $500 down....she has refinanced the car 2 times already and still owes $7500...she has had the car for 1.5 years now....but her long time bf is a BMW mechanic....and she LOVES BMWs and its her baby and its on IG every day...so its ok.....idiots

yea word. in NYC for example, i can see absolutely no use for a supercar with low *** ground clearance. its a waste of money and you'll never hit top speed, not to mention driving a really low car with low profile tires is no bueno in NYC. i get the desire for a sports car tho but i feel there are more affordable options that as you say get you to point a to b.

like a wrx

 

[al audi]

yea word. in NYC for example, i can see absolutely no use for a supercar with low *** ground clearance. its a waste of money and you'll never hit top speed, not to mention driving a really low car with low profile tires is no bueno in NYC. i get the desire for a sports car tho but i feel there are more affordable options that as you say get you to point a to b.

like a wrx

yea you would think that right................

dude i was just in NYC

ppl pimp any kinda ride out there

i justt seen a Camry SE low cleanrance, flush wheels all that.

how many ppl in NYC got rims? kits, lowered etc

i see it ALLL the time from old civics to newer luxury cars, sports cars.

 

[the natural mystic]

I will never buy a new car until I am a millionaire.

I am going to cop a 2010 G37 coupe sometime this year or early next year and I am going to have at least half on the down payment.

 

[jjs07]

Jamaica has better roads than NYC.

 

[crazy dav0]

97 months ... i'm running my paid off '06 scion into the ground ... another 8 years hopefully ... i hate car notes

 

[supermanblue79]

65-97 months to pay off a car.

The car will be worth nothing with 3 years of payments left.

I'll NEVER buy a new car. I cant wait to take advantage when the bubble bursts.

 

[ill steelo]

If i can't pay cash for it, then I'm good.

97 month note tho, or even 65? Damn homie