84 month car loans

[danstraylee]

And I’ve listened to his show, not once did he ever recommend high risk growth stocks.

He recommends “good low cost mutual funds.”

The vey few of his shows I was early able to endure he specifically stated to invest solely into growth stock mutual funds. Horrible advice. For someone retired and living on a fixed income with moderate sources of passive income, debt is not a smart way to go.

 

[wwillson]

The vey few of his shows I was early able to endure he specifically stated to invest solely into growth stock mutual funds. Horrible advice.

There is no way he was suggesting someone retired or nearly retired invest solely into growth funds. Context of his conversation is missing here.

 

[PandaBear]

ars last longer nowadays so it's possible to have the transportation during the life of the loan. But if you are going to finance it for that long, leasing might be a better option. At least you avoid the possibility of costly repairs as the car slowly turns into a POS.

It "depends".

I don't trust a lot of car brands. If I am a bank I would not trust financing a car that has no warranty that long, unless I am in the subprime business and I would likely trust the car lasting that long more than the borrower.

I also don't think anyone other the US government can borrow cheaper in the longer term loan than the shorter term loan. Car company cannot print money like US government.

 

[nwjones18]

Wife is wanting a large 3 row SUV in about 2 years. I told her definitely look at a year or 2 old used vehicle. Valuation drops fast.

It depends on the model.. if you’re looking at Pilots or Grand highlanders there is very little incentive to not buy a new one over a 3yo..

 

[fdcg27]

The vey few of his shows I was early able to endure he specifically stated to invest solely into growth stock mutual funds. Horrible advice. For someone retired and living on a fixed income with moderate sources of passive income, debt is not a smart way to go.

It's not an either/or thing.
Rather, it's a matter of balancing your holdings.
Even in retirement, you should have some of your savings invested in equities since that's the only opportunity you have for growth in value.
In an inflationary environment, growth in nominal asset value is needed to avoid the loss of purchasing power that inflation brings, allowing you to preserve your standard of living.

 

[Astro14]

The vey few of his shows I was early able to endure he specifically stated to invest solely into growth stock mutual funds. Horrible advice. For someone retired and living on a fixed income with moderate sources of passive income, debt is not a smart way to go.

For young people, growth stock mutual funds was his recommendation. Yes. It would be good advice given their age. Never heard him recommend them for retirees.

For someone retired and living on a fixed income, avoiding debt is wise.

Which is exactly what Dave Ramsey would say.

You make a lot of statements that agree with the guy, then complain about his advice, which sounds exactly like your own. Weird.

 

[danstraylee]

You make a lot of statements that agree with the guy, then complain about his advice, which sounds exactly like your own. Weird.

Like I said I've only endured a few of his shows and did not agree at all with his philosophy.

Also I'm very leery of taking advice from someone who deliberately made poor real estate investments so he could use bankruptcy to his advantage to increase his wealth. I as a taxpayer had to pay for his unethical practice of being "successful".

He then turns around and preaches others to eat hot dogs and macaroni and live a miserable existence while they pay back every penny.

After a few of his shows I said no thank you. I have my own team of legitimate financial advisers who help me manage my wealth just fine.

 

[danstraylee]

Even in retirement, you should have some of your savings invested in equities

Of course you should but the portion gets smaller as you get older. Most of mine are in larger capitol ETF's in order for me to live comfortably with a much lower risk during a crash.

 

[jeepman3071]

most people don't take care of their cars/ trucks so most likely the vehicle will be worth a whole lot of nothing by 84 months

This is actually the bigger issue. Vehicles are breaking and having major problems before being paid off, then instead of repairing the rest of the loan is rolled into a new vehicle purchase, putting owners in this forever cycle of having negative equity in their vehicle. There are a lot of people driving around in $50k cars who owe $60k+.

 

[SeaJay]

The monthly payment is the one and only thing that some buyers of new vehicles are concerned about. As long as it is the trendy vehicle they want to be seen in and the availability of a loan with a monthly payment that sounds like something they can handle with any luck -- then the deal is made for those buyers. Upon delivery both the dealer and buyer are very happy with the result.

If it doesn't work out, bad news for both the lender and the borrower as is a risk with any loan transaction. Obviously a much higer risk on a loan of a newer vehicle of that length. C'est la vie.

 

[Ausfahrt]

Is he planning to increase his payment so as to pay off early, or did he get a "good" APR?

He said that he was going to make increased payments to reduce the term and the interest paid but he is now 3 years into the loan and he's just making the regular payments. He's 30 now and a good kid and he is saving to buy a house. My days of telling him what to do are past but he still seeks my judgement from time to time.

 

[fat biker]

If you need a 7 year car loan probably better off with a lease.
Less chance of rolling negative equity into the next deal.
A lot like playing the Lottery.
Lottery? Tax for people that are bad at math.

 

[danstraylee]

he is saving to buy a house.

Saving to buy a home and making car payments makes no sense at all.

 

[Ausfahrt]

Saving to buy a home and making car payments makes no sense at all.

I am happy that you never had kids and have life all figured out.

 

[dishdude]

Saving to buy a home and making car payments makes no sense at all.

Ya kinda need a car to get to work...

 

[supton]

Ya kinda need a car to get to work...

Indeed. It may sound odd but is it really that wrong if someone wants to put $500/month to a car payment, $500/month to a student loan, and $500/month towards saving up for a house? That it might not lead to the fastest increase in net worth might not matter to the individual. And as you indicate, for most unless if they get to work on time, there is no paycheck to be had to divvy up.