Mopar Motivation

[obbop]

Just saw a TV advertisement with Dodge wanting you to buy a new vehicle. Their new powertrain warranty was mentioned along with...... heck, I forget, 70 or 72 month zero interest loan.

Why would anybody take a chance on that long of a loan? If you need one that long is it likely it's more car than you can afford? And, how about if you wreck it down the line, when the vehicle's value is less than you owe on it? What if you owe MUCH more than the vehicle's book value?

Maybe there is extra-coverage insurance to cover that eventuality but wouldn't it be expensive?

Just seems silly to have a car loan lasting that long.

What if you want or need to sell the vehicle before it's paid off. Will you be able to sell it for enough to pay it off? What if you have to sell if for less and cover the difference out of your own pocket?

Variables!!!!!!

And they scare me.

 

[Shannow]

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What if you have to sell if for less and cover the difference out of your own pocket?

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Thousands of Aussie doing exactly that with their now defunct home loans.

Maybe they are being forced to live in their cars, and this is a way to make them feel comfortable.

I like the "buy a BMW/Volvo/Audi" schemes that are in the papers all the time these days. Low weekly payments over a long period of time, with a residual that you won't think about until you have to pay it. Total payments well over $100k for a family car you could buy for $60k

 

[MrCritical]

It would not seem to be something you should go into with zero down payment. These days there are a lot of 72 month auto loans. Your point about getting someone into a vehicle they really can't afford is well taken.

I see folks with $700-$900 car notes all the time. Then there's insurance, fuel, ect. Then the vehicle goes out of warranty and needs a new a/c compressor at $1200.

Thats why you see folks in a $56k Denali driving with the windows down.

 

[Virtuoso]

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Maybe there is extra-coverage insurance to cover that eventuality but wouldn't it be expensive?

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I had loan/lease payoff coverage on one of our old cars we were making payments on at the time. Basically pays the rest of your loan off if your car is totalled and it's value does not take care of the note.

Well, guess what. Wife got rear-ended and the car was toast, and the car was worth about $2,000 less than what we had on the loan. Fortunatly we had the coverage, and it was really cheap when compared to the bulk of full-coverage insurance.

 

[Steve S]

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What if you have to sell if for less and cover the difference out of your own pocket?

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Thousands of Aussie doing exactly that with their now defunct home loans.

Maybe they are being forced to live in their cars, and this is a way to make them feel comfortable.

I like the "buy a BMW/Volvo/Audi" schemes that are in the papers all the time these days. Low weekly payments over a long period of time, with a residual that you won't think about until you have to pay it. Total payments well over $100k for a family car you could buy for $60k

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Shannow ,for most people it is worth every dollar paid in interest. Look at me ,I am in an overpriced car I must be someone.