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.
I'm about done with my first 72 month loan. I plan on starting a new one in th near future. There's no way I would have done this in the 90's, but now I can make it to 120k without $8k in repair cost. It's not much different than leasing.
I did a 72-month note for my used car. I got a rate near 2% and the car only had 4k miles on it, so it's not like I took a long loan at a high rate on some beater or jalopy. I did the longer option to keep the payments down. When my wife finishes school in December, I'll start paying heavy on it. I paid our other car off two years early on its 72-month note.
I did a 72-month note for my used car. I got a rate near 2% and the car only had 4k miles on it, so it's not like I took a long loan at a high rate on some beater or jalopy. I did the longer option to keep the payments down. When my wife finishes school in December, I'll start paying heavy on it. I paid our other car off two years early on its 72-month note.
At 2%? That's less than inflation. I wouldn't be in a huge hurry to pay that off unless there is absolutely no other higher interest loans left. Even investing in the S&P averages returns at 10%.
Last year my coworker financed a 2010 F-150 with 80k miles on it for 72 months. That truck now has 100k miles on it and he still has 5 more years to pay for it.
Personally, the only way I'll buy a vehicle now is if I can put at least 50% down and only finance the remaining half for 36 months. I do not like being upside down on loans.
Last year my coworker financed a 2010 F-150 with 80k miles on it for 72 months. That truck now has 100k miles on it and he still has 5 more years to pay for it.
To be fair, that truck will outlast the payments most likely. While it isnt something I would do it isnt much different than buying a truck with 30K-40K miles.
Reading C-D has opened my eyes to the real world. I'm an old guy who has always saved up to buy a car. I buy used and pay cash. I keep my cars until they are worn out; the previous two cars each lasted 18 years. I grew up poor and learned quickly to avoid debt.
I never realized that people were so casual about being in debt. No wonder they can't save anything.
It seems to me that if you are OK with perpetual car payments forever, it might be better to lease an affordable new car such as a Subaru Impreza or a Toyota Corolla.
When I bought my 2006 Mazda3, in Dec 2015, I financed it for 72 months. I only intended on 60 months (or 48 months depending on the difference in interest rate). But they gave me the same rate (1.9%) for 60 or 72 and the longer term reduced my payment by about $70/month. At the time, my budget was very tight and the slightly lower payment was appealing.
I resolved to pay off the loan in 48 months or less and I actually did so after only 39 months. I still have the car today and it has been paid off since early 2010. =)
To be fair, that truck will outlast the payments most likely. While it isnt something I would do it isnt much different than buying a truck with 30K-40K miles.
In doubt it. Most likely it'll need a new transmission or something before it's paid off. It is a Ford after all.
If you can get 0-1.xx% loan at that term and you plan to keep the car at least that long it can make sense. But yeah I have no doubt most of these fall into the subprime category.
Sure. IF you can get a 0-1/2% loan. But you still need to qualify. You're not going to get that rate just by walking in a dealer because it's offered.
If I get a 0-1% loan sure I may buy on payments. Why not. I just don't want overwhelming debt so I tend to be really careful what I take loans for.
Quote:
Originally Posted by Bitey
People are keeping their cars longer and they're just plain lasting longer, so it's only natural the loan terms are getting longer too.
The terms are longer because prices are higher. Plenty of cars in the past were cheaper and lasted a long time.
Reading C-D has opened my eyes to the real world. I'm an old guy who has always saved up to buy a car. I buy used and pay cash. I keep my cars until they are worn out; the previous two cars each lasted 18 years. I grew up poor and learned quickly to avoid debt.
I never realized that people were so casual about being in debt. No wonder they can't save anything.
It seems to me that if you are OK with perpetual car payments forever, it might be better to lease an affordable new car such as a Subaru Impreza or a Toyota Corolla.
Poor people should avoid debt.
I personally have no desire for an 18 year old vehicle and I drive a lot so it's not possible anyway. I also hate anything build between 1971 and 2010 so there's that. When you save cash you're competing against inflation so you're essentially paying about 3% per year to keep cash in your mattress.
I could pay off a new car now if I sell my investments, but then I'm exchanging 5-10% growth for avoiding a 0-4% auto loan. It makes no financial sense.
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.
