New car financing

Icuby · Jan 9, 2015

I see where some companys are offering 80 plus months to payoff. Man I remember when 36 months was forever.

casenut1 · Jan 9, 2015

Cars were cheaper back then.

Mike M · Jan 9, 2015

Trouble is by that time in the rust belt you end up with a rusted up hulk worth nothing at the end of it.

Jiles · Jan 9, 2015

I think auto financing had to do that.
Today --[i:346dec33cf]some[/i:346dec33cf] people may ask what their payments are, not what the car cost LOL.
Ever notice TV ads that state what monthly payments will be--not, for how long or for what amount.
I was at a local dealer buying a used car--I have never bought new--and was looking at window stickers. I asked the salesman how anyone could justify paying that much for an automobile?
He said[i:346dec33cf] "People don't care what it cost because they think they will always have a car payment!"[/i:346dec33cf]

DeltaRed · Jan 9, 2015

About 10 years a cousin bouht a fancy(almost) new Dodge Cummins 4x4 club cab 3500 pickup. They had 84 months.And (i Think) over $700/month pmts.Too rich for me!!!!!!!!!!

Steve@Advance · Jan 9, 2015

That might be a good deal if you plan on trading it in every year. That's not my style though, don't like driving something I can't use because I might scratch it! LOL

GeneMO · Jan 9, 2015

And then they want to sell you "underwater" insurance for when you total it in a wreck a year later, it is worth $20,000, so the ins. company pays you $19,000 after your thousand dollar deductible, but you still owe $25,000 on it.

It depreciates 10% the instant you drive it off the lot. It is now a Used car.

Gene

Jiles · Jan 9, 2015

(quoted from post at 17:28:35 01/09/15)
And then they want to sell you "underwater" insurance for when you total it in a wreck a year later, it is worth $20,000, so the ins. company pays you $19,000 after your thousand dollar deductible, but you still owe $25,000 on it.

It depreciates 10% the instant you drive it off the lot. It is now a Used car.

Gene

That's one of the reasons, along with others, that I have always bought a vehicle that is at least a year old.
Let someone else loose that money.
The insurance situation is just another example of --REDICULOUS !!

Wheatfarmer · Jan 9, 2015

Oh yes the sale person game. "your payment will be $$$$" You say can't afford that. "If I can get those payments lower can you". Yes of course. They just jacked up the months. YOU DID NOT GET A GOOD DEAL. When I buy I know what I am paying TOTAL COST. I have a texas instrument BA-11 gives me the numbers as I am talking to the saleman. THEY don't like me. LOL.

RandyB(MI) · Jan 9, 2015

The people hold the "power". The people refuse to "USE" their power. Then the people sit around and pi$$ and moan because they "LOST" their power. Then they think their "POWER TO VOTE" will somehow bring it all back. Sad state of affairs indeed.

Mark-Ia · Jan 9, 2015

A guy at work bought a 2014 Silverado, traded in a 2012 Impala. He's got 72 payments of $538.00 a month.

Mike M · Jan 9, 2015

The last couple of cars we bought NEW because the dealers wanted more for a used one a year old with miles on it. New one had small rebate plus the used one had an extended warranty contract on it driving the price up another $ 1,000

DLMKA · Jan 9, 2015

I've never paid more than $5000 for a vehicle. At 33 I've only ever had 2 vehicles in my name and had a truck that was my dad's when I turned 16 and drove until I was 23.

Tom in TN · Jan 9, 2015

I haven't had a car payment in so many years, I honestly can't remember making one. I bought a new car in 1965, so I imagine that was it.

Since then, I've always bought used and paid cash for them. If I don't have the cash, I can't afford the car.

You Yankees might want to come South to buy your next used car. No salt. No snow. Little or no rust.

Tom in TN

Goose · Jan 9, 2015

I'm with you. I can't remember the last time I made car payments.

I won't buy a vehicle I can't pay cash for.

Richard L · Jan 9, 2015

I thought it depreciated more than that. Now you are making me feel better. LOL

ss55 · Jan 9, 2015

Five and seven year car loans have been around since at least the early 1980's. Car dealers would sell young people just starting out an expensive new car with a long term loans and a high interest rate when a used car would have been a better match. The dealers made more money on the loan than the car.

Richard L · Jan 9, 2015

That is the way some friends of ours operate, they have a new car every year. He says if you are going to have a car payment might as well have a new car. He and I do not think alike!!!

WGM · Jan 9, 2015

I'm with you. Typically buy 2 - 3 year old cars or truck and pay cash. Last new car I bought was a 2011 Impala. With the factory incentives and discounts at the time it was cheaper to buy new. Paid cash for it also.

patiolant · Jan 9, 2015

Bought our first new truck in 30 years last year. Was cheaper than comparable one year old used. Could have paid cash but dealer provided 0% financing with no admin fees. So why use my money up front when I can borrow theirs for no cost and keep mine working elsewhere?

mkirsch · Jan 9, 2015

(quoted from post at 09:54:50 01/09/15) The people hold the "power". The people refuse to "USE" their power. Then the people sit around and pi$$ and moan because they "LOST" their power. Then they think their "POWER TO VOTE" will somehow bring it all back. Sad state of affairs indeed.

Randy, WTF are you talking about?

Seems to me that the people *DID* use their power, and that's why cars and trucks cost so d*mned much! Every little while the unions need their big raises or they go on strike. Every person that can't figure out the difference between the gas and the brake, and/or piles their car into a bridge abutment out of their own stupidity costs the manufacturers millions in recalls and lawsuits.

Ray · Jan 9, 2015

The O interest usually isn't a great deal.The interest is figured into the cost of the vehicle and you still pay it.The cash price will be cheaper.

Texasmark1 · Jan 9, 2015

I remember when 24 was all you could get and had to have a 20% down payment at that.

Mark

C.R. · Jan 9, 2015

ouch! over 38 grand not counting his trade in people dont do the math anymore do they?

Ray · Jan 9, 2015

It's usually cheaper to buy new than a one or two year old vehicle.People who think someone else is paying the depreciation are just fooling themselves.Your paying the same price for a car with 10000 miles as a new one in comparison,there just deducting for the miles.

Jiles · Jan 9, 2015

(reply to post at 21:50:40 01/09/15)

Don't know about this case, but I know some people that paid nearly as much for a vehicle as the did for their home!
But, come to think about it, we probably all have more money tied up in vehicles, [b:c8a368717b]combined over the years[/b:c8a368717b], then we do in our home!! But a home, in most cases, will hold it's value or appreciate in value!

patiolant · Jan 9, 2015

Not on this one . Did negotiations as if cash.

jm. · Jan 9, 2015

Not always so right now the no interest KUBOTA money does not cost the dealer or customer anything. If you come in and pay cash does not change what the dealer pays for the tractor . Cash folks get mad when I tell them no break in price for cash. Some time Ford will be the same way and in fact the truck will be a thousand dollars cheaper if you finance. Take the thousand dollars off the deal make three payments and then just pay it off.

Dave in GA · Jan 9, 2015

The most I ever paid for a car or truck was about $4,400, in cash. Still driving it, a '92 Suburban with 330k and still going strong. My backup vehicles are an '89 Suburban bought for $3,600 and a '71 IH pickup bought for $600. All are reliable. I wouldn't know what to do with a new vehicle or even one as new as 20 years old.

RandyB(MI) · Jan 9, 2015

Mkirsch , by "power" I mean power of the purse, people hold the $$$$$ which powers it all. Quit buying the overpriced crap and things would change fast. That doesn't just apply to new vehicles either. People spend like their world is going to end in a year. With the millions of 1 to 5 yr old vehicles out there and the internet to find them, why does anyone need a "NEW" vehicle?? People can complain about big corporations , big oil , big insurance companies, big financial institutions etc, but they have all of them on their "automatic withdrawl" from their account every month and just keep on feeding them. Corporations don't "sell" anything , people "BUY" things and usually quite irresponsibly. I'm just saying people blame everyone but themselves for their bad descisions in life. They hold the power but not the good sense to use it. No one "drags" that money out on ones pocket.

farmer boy · Jan 9, 2015

I recently bought an 2014 Camry on 84 month financing. I am well aware of the total cost of the car. I grew up with old vehicles that always had something wrong with them and always needed fixing. I was looking for a vehicle and decided that I can afford a new vehicle and I don't have to worry about problems while in warranty. The financing was 0.9%. Total cost of borrowing is around $950. I also added the removing depreciation deduction to my insurance policy. I just hit a deer with the car, minor damage, but because I added the extra that cost me $150/year, I get new OEM parts on the car. Was it really that bad of a value?

I am not denying that some people simply say "I can afford it, so why would I care what it actually costs me?" But by no means is every one that's getting/using 60-72-84 month financing financially unwise.

jm. · Jan 9, 2015

Ray at 72 I can agree with you and have the figures to prove it. By trading ever two years I get 65 thousand miles, no batteries,brakes,tires, just the cost of trade difference. My PER MILE cost will be less than a lot of these folks that are driving 10 year old units. If a man has to go and his livelihood depends on reliable transportation new is not a bad deal. To each his own.. Oh somebody has to buy new or these naysayers would not have a used one to buy.

CenTex Farmall · Jan 9, 2015

You make a good point. The problem we have now is the precedent set by external_linkcare where we are now _required_ to buy something from a for-profit corporation!

Rich_WI · Jan 10, 2015

(quoted from post at 22:22:09 01/09/15) Ray at 72 I can agree with you and have the figures to prove it. By trading ever two years I get 65 thousand miles, no batteries,brakes,tires, just the cost of trade difference. My PER MILE cost will be less than a lot of these folks that are driving 10 year old units. If a man has to go and his livelihood depends on reliable transportation new is not a bad deal. To each his own.. Oh somebody has to buy new or these naysayers would not have a used one to buy.

You should post up your numbers because just saying something like that is so far fetched. For example, just insurance alone would eat up a large portion of the money you spend on your new vehicles compaired to a 10 year old vehicle. And thats even assuming a person would put full coverage on the 10 year old vehicle, most people are running liability only by that point. Finance charges add up too.

You have to remember, when you are compairing the per mile costs, adding just a single penny is really hard to take away once its there. Thats why things like insurance and finance charges are killer when adding up costs per mile.

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