10 yr Auto loans....yikes!

[demarpaint]

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.

Then maybe they should sue the universities, professors, guidance counselors, etc. who fed them a bunch of lies. After all drop a hat on someone's foot or hurt their feelings and you might get sued. This is how a lot of people roll today. Bottom line I don't want my tax money paying off student loans. I paid mine off, with no help from anyone.

 

[MRC01]

If you can't afford to pay cash, don't buy an expensive car.

But it depends on the interest rate. I normally pay cash but during our last purchase they offered 4 years at 0% interest. That's free money, added up to about $7k cheaper than paying cash, due to opportunity cost of what the cash earns if not spent.

 

[odie]

10 years ! Sign me up ! It's the thrill of getting a bill . I can WING it . Before the loan you may want to go to a fortune teller ( or 2 for second opinion ) to see your future for next decade .

 

[billt460]

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.

Using bad behaviour to justify other bad behaviour excuses nothing. People have gotten student loans for decades. Only now has it become a giant problem. Much like these outlandish 10 year auto loans. People are simply borrowing too much money that they're incapable of paying back.

I'm assuming you've never taken a history class? Or at least a history class after everyone could use the same water fountain?

What does that have to do with being paid, "reparations" for slavery? People living today have done nothing to deserve such financial restitution. Anymore than other people today deserve having to pay it. It's all nothing more than a bunch of politically correct, progressive nonsense.

 

[MRC01]

... What does that have to do with being paid, "reparations" for slavery? People living today have done nothing to deserve such financial restitution. Anymore than other people today deserve having to pay it. It's all nothing more than a bunch of politically correct, progressive nonsense.

Reparations is the idea that people who never owned slaves, should pay slavery reparations to people who never were slaves.
Anyone who believes that nonsense should read a history of slavery and realize it ends up with everyone owing everyone else as we punish children for the sins of their fathers going back for generations if not thousands of years. It does nothing but perpetuate social and political grievances that we should strive to mend.

 

[Pew]

Using bad behaviour to justify other bad behaviour excuses nothing. People have gotten student loans for decades. Only now has it become a giant problem. Much like these outlandish 10 year auto loans. People are simply borrowing too much money that they're incapable of paying back.

Here's a page from the GOV website regarding the Student Forgiveness Loan. Steadily rising costs have always been an issue.

Since 1980, the total cost of both four-year public and four-year private college has nearly tripled, even after accounting for inflation. Federal support has not kept up: Pell Grants once covered nearly 80 percent of the cost of a four-year public college degree for students from working families, but now only cover a third.

What does that have to do with being paid, "reparations" for slavery? People living today have done nothing to deserve such financial restitution. Anymore than other people today deserve having to pay it. It's all nothing more than a bunch of politically correct, progressive nonsense.

I've never met a single person who's on board with "reparation" payments. The only ones I've heard of being on board with this are weird fringe-type groups found on Facebook and the likes. I've met plenty of people who would gladly take $20k to pay off any loan though - although I doubt the gov announcing the SFL is actually altruistic, but that is a separate topic.

 

[billt460]

Here's a page from the GOV website regarding the Student Forgiveness Loan. Steadily rising costs have always been an issue.

Since 1980, the total cost of both four-year public and four-year private college has nearly tripled, even after accounting for inflation. Federal support has not kept up: Pell Grants once covered nearly 80 percent of the cost of a four-year public college degree for students from working families, but now only cover a third.

So college degrees have gotten more expensive. So has everything else. Welcome to life. It all changes nothing. You can either afford it, or you can't. It's just that simple.

If you can't, then don't sign up for the loan..... Which you shouldn't be given in the first place, even if you do. People are not entitled to go to college, anymore than they are entitled to own an expensive car or home.

 

[macarose]

One dollar a day in depreciation.

If a vehicle can't give you that, don't buy it.

 

[supton]

One dollar a day in depreciation.

If a vehicle can't give you that, don't buy it.

Gauging what the used market is doing, going off of CL, I think my old Camry might have appreciated… sheesh is the market crazy.

 

[ARB1977]

We make that choice. It is all about the monthly payments.

I did a 7 year and paid it off in just over 3 years. It was nice the option on making a higher payment when I didn’t have too.

 

[LDB]

I did a 7 year and paid it off in just over 3 years. It was nice the option on making a higher payment when I didn’t have too.

That makes a good point. Take the maximum length payment period available at the lowest interest rate offered, i.e. if the lowest rate is 1.9% up to 48 months take 48 months to have the lowest monthly amount. Then throw in an extra $xxx every month to pay off in 24 or 30 months or however long you want it but if you have a really bad month you can pay the lower required amount to get to the next month.

 

[emmett442]

Late to the party, here.

10 year loans...makes sense to me on something that appreciates in value.

Up here in the great white north, an average car is 2/3 of the way to the crusher at 10 years old. Towards the end of the loan, the psychological factor of making premium "new car" payments with high interest on what's becoming a "beater" would bother me.

With the loan spread out over such a long term, I'd imagine principal payments almost never catch up to the value of the vehicle for any given point in time. Life can change a lot in 10 years. That seems like a liability to me.

Just not sure what the advantage to such a loan is. Why carry that risk, pay 6-7% interest just to MAYBE make 6-7% on the capital you've retained, assuming the discipline was there to invest the "savings" in a retirement account or the like (most people don't)?

Just buy the car outright and move on.

No problem with taking advantage of "cheap money" while it's available. We've been pampered the last 10 years, with investment gains well outpacing interest rates. Take a 3% loan to make 10%+ elsewhere? Hell yeah.

But, those days are ending. Both terms and rates climbing, investment returns slowing down, taking on extended car loans seems like a losing proposition.

 

[MRC01]

... Up here in the great white north, an average car is 2/3 of the way to the crusher at 10 years old. Towards the end of the loan, the psychological factor of making premium "new car" payments with high interest on what's becoming a "beater" would bother me. ...

There's another point in this thread about the service life of the average car. Mine have been 20 years / 200k miles or more. I do maintain and service them, but nothing crazy, just the normal stuff following the service manual. And replacing the occasional parts that fail out of schedule (O2 sensors, spark plugs & wires, end links, etc.).

 

[CKN]

Guys complain about the 10 years loans other people might take out....and brag about keeping their car 200,000plus miles on here. Anybody see what I see...........?

 

[PimTac]

Wait until you vil own nothing and you vil like it.

Then people will be paying monthly subscription fees just to order a car to take them somewhere. Those monthly payments go on forever.

 

[odie]

May also want to add extended warranty to the loan and finance that for 10 years . Hope the rate is low and not variable .

 

[Zee09]

Guys complain about the 10 years loans other people might take out....and brag about keeping their car 200,000plus miles on here. Anybody see what I see...........?

Yup To each his own....

 

[odie]

A bit of luck helps with vehicles dependability / longevity . May want to get a to go with the 10 year loan and hang it from the rear view mirror .

 

[TomYoung]

Ten year car loans are insane, and a formula for disaster. Two stupid moves, one on the bank writing the loan, and the other on the buyer of the car taking the loan. It might be time to start thinking of going into the repo business. My bet is it will be booming in the next few years, maybe sooner.

Actually, it's great business for the banks. It's eventual misery for the buyer.

 

[ARB1977]

That makes a good point. Take the maximum length payment period available at the lowest interest rate offered, i.e. if the lowest rate is 1.9% up to 48 months take 48 months to have the lowest monthly amount. Then throw in an extra $xxx every month to pay off in 24 or 30 months or however long you want it but if you have a really bad month you can pay the lower required amount to get to the next month.

I couldn’t tell you what my interest rate was at the time. I did pay 200 extra a month.