Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Reality will be that the interest rates will be higher than the price of the auto.
What does that even mean?
I have a 60 month 1.84% loan. I could've paid cash but that would've actually cost me money.
I left my cash where it was, put my auto loan on autopay and forget about it.
Car prices are higher. People can only budget so much, but some want the cake. So to make payments affordable they stretch the loan time and also right now rates are low IF you qualify. Not everyone qualifies for 0-2% loans.
There are affordable vehicles. Every model has a entry mid and luxury level.
What does that even mean?
I have a 60 month 1.84% loan. I could've paid cash but that would've actually cost me money.
I left my cash where it was, put my auto loan on autopay and forget about it.
They are making more money off of you when you make payments. For me i rather keep my cash too i never lease or finance a vehicle
Another scary point is the Auto Dealer's ads on TV quite often never state the price of the vehicle they are advertising . . . ONLY THE MONTHLY PAYMENTS.
Also, for those who figure they are "saving money" by financing vs raiding their savings are in dire need of a new calculator.
They are making more money off of you when you make payments. For me i rather keep my cash too i never lease or finance a vehicle
I make more money when I make payments.
If I can't make more than 1.84%, I should just quit investing and put the cash under my mattress.
I would not be impressed with that level of return.
Yep terms are getting longer, even hear of 84 month terms these days! But as long as you are qualifying for a rate below what your investments return it can still make perfect sense to take those terms.
Unfortunately though I would guess many taking those long terms are also subprime and thus paying for the car a few times over with interest...if they even finish payments at all and don't just roll negative equity into the next car.
In early May I bought a used car, a 2002 Sequioa. Inexpensive was one of the most important search criteria and I felt confident I would find what I was looking for at a price I was willing to pay. The backup plan was to go new. To that end I could have got 0% financing for 72 months on a new model through my credit union. If you're getting 0% why not take as many months as they'll give you. I realize not everyone can get 0%. To that I say it pays to have great credit!
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
