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Old 11-11-2019, 03:02 PM
 
Location: 5,400 feet
2,751 posts, read 2,695,651 times
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A WSj article today discusses underwater car loans. It states that about 1/3 of all car loans are underwater. Apparently, many of those loans have previous underwater amounts rolled in. It discusses one buyer who has taken four loans since 2017 and now owns a Jeep Cherokee which he purchased used for $27K, and has a $45K car loan. The car is now worth about $18K (and isn't running).
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Old 11-11-2019, 04:46 PM
 
4,458 posts, read 1,153,429 times
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Don't take out a 5 year loan on a (German) car with a 3 year warranty Problem solved
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Old 11-11-2019, 04:47 PM
 
4,458 posts, read 1,153,429 times
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On new cars: Being the first owner is not problematic if you also intend on being the last.

Drive it 'til the wheels fall off.
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Old 11-11-2019, 04:49 PM
 
Location: Boston
9,131 posts, read 2,686,662 times
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these are the same people that couldn't pay for a $400 emergency.

Hop on the bus Gus.
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Old 11-11-2019, 04:56 PM
 
4,458 posts, read 1,153,429 times
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Quote:
Originally Posted by SWFL_Native View Post
Average or Median?


The quote wasn't WRONG, per se, but yes I wonder if they MEAN median
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Old 11-11-2019, 05:31 PM
 
Location: Living on the Coast in Oxnard CA
16,122 posts, read 27,317,549 times
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Quote:
Originally Posted by ddm2k View Post
On new cars: Being the first owner is not problematic if you also intend on being the last.

Drive it 'til the wheels fall off.
I am the owner of a 2018 Ford F-150. I intend to drive my truck for the next 20 or more years. I don't intend to get rid of it ever. One thing that I have always thought was funny was when someone says they are going to buy a car and drive it into the ground. As in they will be the one to finally kill the car.

My thought: Drive it and maintain it so that when you don't need it anymore it still works.

I bought my truck after driving a 2003 Chevy Astro van for 181,000 + miles and 16 years. I had always wanted another truck and loved the way the Ford looked. Also with a truck, take care of it and it will take care of you. I see it as a longer lasting type of vehicle. A friend that used to live around here owns a 1997 Dodge Ram truck. He bought it new. He still owns it. A year or two ago he put it in the garage and replaced a lot of things on it. Sent it out for paint and had a guy redo the interior of the truck. It looks new again.
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Old 11-11-2019, 05:39 PM
 
4,458 posts, read 1,153,429 times
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Quote:
Originally Posted by SOON2BNSURPRISE View Post
I am the owner of a 2018 Ford F-150. I intend to drive my truck for the next 20 or more years. I don't intend to get rid of it ever. One thing that I have always thought was funny was when someone says they are going to buy a car and drive it into the ground. As in they will be the one to finally kill the car.

My thought: Drive it and maintain it so that when you don't need it anymore it still works.

I bought my truck after driving a 2003 Chevy Astro van for 181,000 + miles and 16 years. I had always wanted another truck and loved the way the Ford looked. Also with a truck, take care of it and it will take care of you. I see it as a longer lasting type of vehicle. A friend that used to live around here owns a 1997 Dodge Ram truck. He bought it new. He still owns it. A year or two ago he put it in the garage and replaced a lot of things on it. Sent it out for paint and had a guy redo the interior of the truck. It looks new again.
Not long ago saw a 2001 Dodge Ram 2500 with 130k (Yes 4x4 and yes, Cummins) listed for $17,500. Probably 40-50% of sticker. Sold in less than a week.
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Old 11-11-2019, 05:49 PM
 
10,839 posts, read 12,784,229 times
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Quote:
Originally Posted by ddm2k View Post
Don't take out a 5 year loan on a (German) car with a 3 year warranty Problem solved
Most German cars are 4yr/50K mile factory warranties. VW just went to 6 yr/75K bumper to bumper.
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Old 11-11-2019, 06:26 PM
 
Location: annandale, va & slidell, la
8,293 posts, read 3,343,665 times
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Quote:
Originally Posted by SWFL_Native View Post
Hmm that seems counterintuitive as the depreciation curve is steepest from year 0 -> 1 then 1 > 2 and so on. So if taking out a 5-7 year loan one would think having negative equity would be most likely where the depreciation occurs fastested (e.g. year 1).
Never seen a financed used car trade that was worth the payoff. You have?
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Old 11-11-2019, 06:29 PM
 
4,458 posts, read 1,153,429 times
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Quote:
Originally Posted by City Guy997S View Post
Most German cars are 4yr/50K mile factory warranties. VW just went to 6 yr/75K bumper to bumper.
75k = 2 years of driving for me.
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