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Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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I use a credit union, and it's been below 2%. Still, I put enough down to keep the loans under $20k now. Back in 1990 I bought a full sized Bronco and payments were $525. I make a lot more now but am also more sensible.
Isn't the rate per se, thing is you are paying *more* the longer repayment periods drag on. My example using a mortgage was at least their you are building equity (hopefully) that at some point will give returns on that investment. Paying off other sorts of credit over longer periods is again just a waste of money.
Each month as required by law credit card companies tell you how long it will take to repay balance to date if you make the minimum versus a certain amount. Depending upon the interest rate and balance owed the sooner things are paid off equals large to huge savings in interest.
No one is committing financial suicide over $60 in interest a month.
Some interesting takeaways I personally have. I'm not sure if this is the article or not that mentioned it, but the automakers are saying more and more people are opting for the 'loaded' trim levels vs. bare bones these days. This shows a voluntary willingness to spend more money. This tells me more and more people are comfortable in their jobs to go out and purchase new cars, especially the more expensive varieties.
We need more consumer spending to kick start the economy into growing, these sort of news bites are good news not bad news. IMO.
I dont see a ton of new Mercedes and BMWs on the road, must be a lot of subprime borrowers making up the market here. Does not seem very healthy.
Come on up to NY, NJ, Conn area; plenty of new BMW, Mercedes-Benz, Audi, Infinity, Range Rover, Mini Cooper, Cadillac and so forth. Though what percentage of these vehicles are leased versus owned cannot say.
Not mentioned in the article, but the average loan for a new vehicle is now 68 months as well. 66 months for used vehicles.
Sounds like a lot of people make a lot of bad decisions to me. I dont see a ton of new Mercedes and BMWs on the road, must be a lot of subprime borrowers making up the market here. Does not seem very healthy.
No one is committing financial suicide over $60 in interest a month.
Some interesting takeaways I personally have. I'm not sure if this is the article or not that mentioned it, but the automakers are saying more and more people are opting for the 'loaded' trim levels vs. bare bones these days. This shows a voluntary willingness to spend more money. This tells me more and more people are comfortable in their jobs to go out and purchase new cars, especially the more expensive varieties.
We need more consumer spending to kick start the economy into growing, these sort of news bites are good news not bad news. IMO.
Savvy consumers aren't just looking at the "$60/per month" saved but the total amount over period of loan. More importantly what is the opportunity costs, that is would that three thousand some odd dollars be working for you better elsewhere; my guess is it would.
Savvy consumers aren't just looking at the "$60/per month" saved but the total amount over period of loan. More importantly what is the opportunity costs, that is would that three thousand some odd dollars be working for you better elsewhere; my guess is it would.
You're nuts. The lost opportunity cost is the $30,000 spent on the car not the piddly amount of interest paid on it. You guys are focusing on the wrong things.
I don't buy expensive cars because they don't make me money.
If people want to borrow $30K for a car and make $500 payments for 5.5 years I don't care.
In another thread, some people were wondering how people get to age 60 with zero savings.
Car payments like that might have something to do with it.
LOL LOL very good point. The government had better think twice before trying to get the rest of us to bail these jackasses out again. 30K...a six year effing car loan?
No one is committing financial suicide over $60 in interest a month.
Some interesting takeaways I personally have. I'm not sure if this is the article or not that mentioned it, but the automakers are saying more and more people are opting for the 'loaded' trim levels vs. bare bones these days. This shows a voluntary willingness to spend more money. This tells me more and more people are comfortable in their jobs to go out and purchase new cars, especially the more expensive varieties.
We need more consumer spending to kick start the economy into growing, these sort of news bites are good news not bad news. IMO.
That's exactly the situation I'm in, down to the interest rate.
No, no one is committing suicide over the interest, but the payment is $10k in pre tax income. That's crippling.
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