They’ll work fine as you can roll a 10 year extended warranty into loan.
10 yr Auto loans....yikes!
- Thread starter ZZman
- Start date
It’s easy for many to run out and sign up for payments and spend more , big deal I can handle it . When it’s you hard earned cash in bank leaving your hands you really think if you need a $60k car or will a $40k do it even $25k nice used vehicle. Not you specifically but happens to many .
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These threads are predictable and laughable.
Zee09
$200 Site Donor 2023
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Yup...the majority of Americans are up to their Rumplestiltskins in debt with the exception of 98 percent of the fiscally responsible BITOG crowd...
We need a BITOG audit here.
In what ways?
40–year mortgages are out there. Have been for some years. I know of someone in the family who had one in the 1970s.
Generally the special life-insurance packages that pay off vehicle loans or mortgages upon the debtor's death have age limitations. An 80–year-old who takes out a car loan or mortgage normally won't be eligible to get that insurance.
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I'm not bragging but I'll give some color. I got an alert from WFC this month:
Get your FICO® Score with new credit monitoring alerts
I log in, and for the first time in my life, my Experian FICO 9 is 850/850. We all know FICO is a bit mysterious, but it affects rates when borrowing. People seem to pay a guy in TN, for advice on how to get it higher. Why, I'll never know, but he sure likes it.
I think there is no real secret, a lot has to do with paying back and on time.
Only 7 years ago, this is what happened to me. I'm responsible. I had a son born and a 0% for 18 mos. offer on a Visa. I told myself, I'll charge things especially for the baby, and then I'll take the monthly balance, and put it in savings. After 18 mos., I'll take it out and pay it off.
I pay in full every month, so how hard could it be?
Hard. After 18 mos., I had put $0 into savings, and had a $14k balance. So to your point, that's how it works when people are able to make payments smaller by lengthening the amortization. my .02.
Also to your point, many won't accept the fact that they cannot afford today, to replace, what they already have. They won't downgrade due to the fact that prices have gone up. Like my AV receiver example. I bought a Denon in 2009, for about $200. It broke during the pandemic. To get the same specs was $550. So I got a Sony for $249. Serious downgrade. How many will accept that in 2007 they drove a twin turbo BMW, but today, the CR-V is out of their reach?
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I ordered a 2007 335i coupe in Oct 2006. Since I truly could take it or leave it, I got $1800 off list which at the time was about as good as it got, since no dealer in the nation had one in stock. The BMW portal was so bad back then, my car was black sapphire all the way through being loaded onto the ship. It arrived space gray as ordered....it's still in the garage btw...
It's kind of interesting that inflation has even caused the long-running trend of electronics getting cheaper over time to reverse.
I noticed that 10 years ago I bought a blue-ray burner for $59.
They cost $69 today.
You are right------they are. We have one or two of the following on a regular basis-
A debt thread
An anti-new car thread.
They are both boring and predictable. I wish beaters were cheap again-I'm almost missing the "I picked up this Crown Vic for $2,500.00" threads.
I am a 70 year old native Texan who drives a 22 WRX. Most of my neighbors own two deluxe crew cab pick ups, which they use as commuter cars, at 70k or more each, which they get in black even though they park them outside because after all they do not really fit in the garage, and then they get beat up by Texas hailstorms. Oh wait, I have become a crotchety old fart.
I guess it depends upon what a buyer values in a vehicle. To me, having something reliable and cheap to run that is reasonably priced new is my priority. Personal transportation is a wonderful thing.
To others, a bit more flash seems worth the money and for them it is.
Ten year paper is risky for both the debtor and the lender. If the buyer is upside down on their loan then the lender is too, in that the collateral value is less than than the principle owed. A buyer in real distress can file bankruptcy and discharge the debt by turning over the collateral. The lender then eats the difference between the principle owed and the auction value of the collateral.
As bad as these long term loans may be for buyers, they aren't all that great for lenders ether.
This is the type of lending that helped bring the 2008 recession.
Kind of. It was largely brought on by banks loaning to people they shouldn't
have loaned to in the first place.. Regardless of term length.
edyvw
$50 site donor 2025
Car manufacturers and financial institutions are facing with slow down, which what higher interest rates are designed to do.
Problem is that it is hard to get off that “high” they enjoyed until few months ago. Now, try to get people to buy emotionally. They will calculate monthly payment and figured that it is “ok.” Dealerships can still charge $10k over MSRP.
It was inevitable.
Problem is that it is hard to get off that “high” they enjoyed until few months ago. Now, try to get people to buy emotionally. They will calculate monthly payment and figured that it is “ok.” Dealerships can still charge $10k over MSRP.
It was inevitable.
No extended warranty covers HV batteries. They are always an excluded item.
In Canada mortgages are "recourse mortgages", and have been for decades. If you turn in your keys and walk away from your house, the bank will sell it for what they can get and if they don't recover the full amount of the mortgage, you will owe them the difference.
In the US in the past there were "non recourse mortgages". That means if you walked away, the bank would get what it could for the house, but you owed nothing even if it couldn't sell it for the full amount of the mortgage. That was hard on the banks.
I understood that all changed after the last housing crash. Mortgages in the US are now apparently "recourse mortgages" just like in Canada. If that's true, it will no longer be possible to just walk away. There would be ways out of the debt of course (eg repayment proposal, personal bankruptcy) but it's no longer simple.
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