Cars are so expensive that buyers need seven-year loans
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Re: Cars are so expensive that buyers need seven-year loans
#2Re: Cars are so expensive that buyers need seven-year loans
#3Even TFA points out that this is nothing new, as I was thinking "we bought a new car 20 years ago, and 84 month loans were an option". It was an option that few took, but it was there. Now, apparently, 21% of new car loans are 84 months.
While we're on the subject, here's one for you: if you buy an RV, you can get a 20 year loan. We technically have one at the moment (it'll be paid off after having held the loan for a few months). You think cars depreciate fast? Go buy an RV. I can't imagine carrying a 20 year loan on something that will be nearly impossible to sell before the loan is paid off.
Re: Cars are so expensive that buyers need seven-year loans
#4[deleted]
Re: Cars are so expensive that buyers need seven-year loans
#5You will own nothing and be happy basically.
Re: Cars are so expensive that buyers need seven-year loans
#6Even TFA points out that this is nothing new, as I was thinking "we bought a new car 20 years ago, and 84 month loans were an option". It was an option that few took, but it was there. Now, apparently, 21% of new car loans are 84 months. While we're on the subject, here's one for you: if you buy an RV, you can get a 20 year loan. We technically have one at the moment (it'll be paid off after having held the loan for…
Marine loans for boats also appear to carry 10-20 year terms. Value being subjective and all, if you find the juice tasty enough then it must be worth the squeeze.
Car loans have a bit more of an inherent predatory bent since most Americans need a car to get by. That's not to say we all need a car which costs so much that an 84 month term becomes worth considering...
Re: Cars are so expensive that buyers need seven-year loans
#7You will own nothing and be happy basically.
Eh cars are one of the few areas that haven't been crushed by inflation unless you buy some stupid giant SUV. Honda civic costs less than it did in the 90s/00s (adjusted for inflation). Tons of affordable sedans out there, people just like getting giant $50k+ cars, I have no clue why.
Re: Cars are so expensive that buyers need seven-year loans
#8The real news is Harley Davidson motorcycles are so expensive people are getting 8 year loans at over 10% APR - and that's with good credit! Prices today are insane!
Re: Cars are so expensive that buyers need seven-year loans
#9Cars last longer now, so this may not be as bad as it sounds. The real issue is whether people are ending up underwater on their vehicles - that is, are loan lengths increasing faster than depreciation curves are flattening.
Re: Cars are so expensive that buyers need seven-year loans
#10You will own nothing and be happy basically.
Eh cars are one of the few areas that haven't been crushed by inflation unless you buy some stupid giant SUV. Honda civic costs less than it did in the 90s/00s (adjusted for inflation). Tons of affordable sedans out there, people just like getting giant $50k+ cars, I have no clue why.
In Poland I bought new Toyota Corolla fpr 127k pln after promotions (that was 2021).
Three years later I sold the car for 142k.
Adjusting car value, a 3years decrease, it should cost around 70k. But it doubled in price.
So at least here inflation on new / few years used cars is around 100%.
Its a terrible moment to buy used cars. You are way better off buyin a new car for 150-200k. Coz promos you get will drop its price by almost 30%.