I already got Atlas. Lowered from $46 to $40,773 + 120k, 10yr warranty on slightly used (2021, 15,000 miles).
10 yr Auto loans....yikes!
- Thread starter ZZman
- Start date
What will happen is the 10 year loan customers will beat these vehicles up & trade them in/roll over the loan into ANOTHER new car loan… And we wonder why people never get out of debt…
You’re right no one is forcing folks to take 10 year loans. No one forced folks to get excessive amounts of student loans either. If we don’t change our way of thinking there will be calls to forgive my car loan as well. I’m genuinely concerned about our societies financial acumen. At some point we the tax payers will feel the burden. That’s all I’m saying.
Just my $0.02
The student loans are MUCH more complicated than car loans. It is far from being similar.
Car repo’s were common even before. It is not I think financial acumen as need to have latest gadgets etc. I agree, it is cultural thing.
I did 60 at 0% about 4.5 years ago. Right now I look like a genius. But yeah, if you can be preemptive and pay your savings account $500/mth instead of your car loan/bank, then just pay cash. Especially at the current interest rates, which are still historically "low".
Loans are as simple as can be. You sign for the loan and you owe the money. Nobody else, especially people you don't know. Not complicated. Unless someone is dumb enough to co-sign, then both owe the money.
Or they'll run them for as long as possible because the avg age of an car on the road keeps increasing.
No need for that - BHPH lots as well as subprime lenders require a GPS AVL/interlock device in states that allow them to track their assets.
I think that attitude will drastically be changed for most vehicle owners over the next few years.... From becoming, "bored with it", to feeling lucky to have it.
That is already happening. There are currently more underwater auto loans on vehicles, than ever before. As loan length lengthens to stretch out, and accommodate much higher new car prices, into manageable monthly payments.
While at the same time down payments are shrinking in amount as people lack the ability to save. All while initial 3 year depreciation is increasing on several models. But you are correct in your analysis.
The whole thing is quickly becoming a financial house of cards that will come crashing down. It's a matter of when, not if. Much like the housing market in 2008.... All paper and no money, with limited thought as to actual value.
Americans Are Severely Underwater on Their Car Loans
On average, today's car customer owes $5,500 on their trade-in, a number that hasn't been seen since before the pandemic.
jalopnik.com
You don't have to look far to see how this will be another disaster in the making. Just look at the current mess some of the banks are in now. History repeats itself, time and time again. Imagine popping a 7 year old car with a 10 year note and then auctioning it off to recoup losses. LOL good luck with that.That is already happening. There are currently more underwater auto loans on vehicles, than ever before. As loan length lengthens to stretch out, and accommodate much higher new car prices, into manageable monthly payments.
While at the same time down payments are shrinking in amount as people lack the ability to save. All while initial 3 year depreciation is increasing on several models. But you are correct in your analysis.
The whole thing is quickly becoming a financial house of cards that will come crashing down. It's a matter of when, not if. Much like the housing market in 2008.... All paper and no money, with limited thought as to actual value.
Americans Are Severely Underwater on Their Car Loans
On average, today's car customer owes $5,500 on their trade-in, a number that hasn't been seen since before the pandemic.
Here's what I learned when I was selling cars. A very large % of the cars repo'ed were in bad shape. I often overheard conversations from people with bad credit. They started when the couple was alone waiting for the F&I guy to make copies or something along those lines. Some were brazen enough to say it in front of him. The woman would often tell the guy "you can't make those payments." He'd say "I know, and by the time they find the car it won't be worth s*.*t." He was right. lol My bet is history is going to repeat itself again, in fact it already started.
With a nearly paid-off Tundra and RX 350 and the new model price of both being significantly higher with significantly higher interest rates, yes, I feel lucky that both only have about 40K miles on them and I can keep them for years/decades.
He doesn't repo those. He repos vehicles financed with traditional lenders.
Some people have a habit of not paying their note until the car is repo'd, then bringing it current and getting the car back.
That doesn't work with Toyota Motor Credit. They call the loan, so the customer would have to pay the whole note off to get the car back
Honda is the same way, I've been told.
I feel lucky I know my way around cars and can buy a used one at a decent price.
Just to keep all of this in perspective. I paid my first house off in 7 years.... After putting 20% down. No, the purchase price was nowhere near what they cost today... But neither were the wages. It's always been relative.
Student loan "forgiveness" has been brought on by schools teaching a sense of entitlement, at a level that borders on insanity. Not on how the loans themselves are structured.
There are people today that have been taught they "deserve" everything. A house, a job, a car, "reparations", even a certain level of income. If you can name it, they've been taught to feel entitled to have it.
Or they were fed a bunch of lies with regards to the value of their chosen degree, the universities who fed off them and lenders who were more than willing to approve these loans which cannot* be discharged in a bankruptcy
*Under very very rare circumstances it is possible.
For the record my parents paid for my first 1.5 years in college and I earned an athletic scholarship for the remaining 3 years.
At least recipients of the Student Forgiveness Loan (which have specific criteria if one actual decides to read it) can help secure our future with students going into STEM jobs while companies like Ford, Chrysler, and GM take bailouts and handouts and still fail.
I'm assuming you've never taken a history class? Or at least a history class after everyone could use the same water fountain?
