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Just an attempt to increase the potential consumer base, increasing sales and allowing automakers to jack up prices. This is going to hurt everyone looking to buy a vehicle in the long run. We may be more financially prudent than those demanding a 7 year car note, but those buyer's stupidity will cost us all.
Why is it that so many companies require finance trickery like this to make a buck? What ever happened to an honest buck???
Just an attempt to increase the potential consumer base, increasing sales and allowing automakers to jack up prices. This is going to hurt everyone looking to buy a vehicle in the long run. We may be more financially prudent than those demanding a 7 year car note, but those buyer's stupidity will cost us all.
Why is it that so many companies require finance trickery like this to make a buck? What ever happened to an honest buck???
when we started printing money and pretending everything was okay, we pretty much admitted we lost control.
as far as car loans, it seems very stupid for the lender-as their "collateral" keeps depreciating anyway-and the borrower is increasingly disincentivized to keep paying the loan.
I have seen stories about people "renting" furniture and then turning around and selling it-they often leave the country so what can be done?
as I am typing, I am sure a new scam is developing. I am not sure that bitcoin isn't a scam on its own.
I have a friend who works at an auto dealership in Calumet City, IL, you could say that Cal City is working class, and had a woman ecstatic to be approved for something insane like 25% or something like that on a loan. She was ecstatic because she didn't think she would be approved at all.
People are poor not because they don't make enough, they're poor because they spend too much. I have a friend, single mother of 3 who works 2 jobs and she makes about $9.50/hr at each job. She manages to save money as well as pay for her condo and a '08 Charger.
Your loss/gain really depends more on the interest rate than the length of the loan.
And the car dealers know you think like that. So they jack up the price of the car, and pay the loan company for you - with your money. C'mon, did you really think that shotgun was free?
End of the day you have paid 30,000 for the car I paid 25,000 for. That's how it works.
And the car dealers know you think like that. So they jack up the price of the car, and pay the loan company for you - with your money. C'mon, did you really think that shotgun was free?
End of the day you have paid 30,000 for the car I paid 25,000 for. That's how it works.
If I were to buy a car, the dealer is not paying my credit union anything. If you think that my credit union and the dealer have some behind-the-scenes deal, you're mistaken. Dealers can't just arbitrarily jack up the price of a car unless the buyer has no clue. The reality is that most new cars sell within a few % of ZAG pricing unless you're taking dealer/manufacturing promotional financing in lieu of a kickback/rebate.
Sure, with a used car, it's possible to be caught in this price fluctuation crap. But with a new car, dealers don't have the freedom they used to 20 years ago.
Encourage the brain dead American consumers to buy more expensive vehicles than they could afford otherwise by dragging out payments a few more years, thereby making said too costly vehicle even more so. Sounds good to me.
I'm not a fan of financing cars, or any other depreciating asset for that matter
However, considering that interest rates are low and that cars last longer than ever there are a lot worse things someone could do.
The only real issue is how much higher the interest rate is for the longer loan vs. a traditional 60mo loan. If they are the same, no reason not to go longer. If not, then it comes down to a simple math problem - is the extra interest you pay over time worth the flexibility of the lower monthly payment?
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