Posted on 03/20/2015 7:13:12 AM PDT by nascarnation
You’ll be buried for the next 2 or 3 car loans.
The negative equity follows you to the next loan.
Extended terms used to be offered to only A credit customers because they could usually afford the cash down to counter the negative equity.
Leases. Then dump it back at the dealer in two years and get another one.
Guy has a BMW on my block. He’s paying 900 a month on a lease. Sure he’s nuts but I guess he’s happy with it.
Vehicles have approached a point in cost that it’s virtually impossible to pay them off within a time frame consistent with their obsolescence.
I’ve bought used my entire life. The truck I own now was purchased at an auction for me by a dealer friend. A 2004 4WD Dakota loaded. I got it in 2007 for 9K with 51K on the clock. I found the original bill of sale in the glove box. the original owner would have paid something like 28 grand by the time the loan was paid. They lost it in repo and I found it.
I’m still driving it.
Your approach is based on common sense and wisdom.
Often lacking these days, it appears.
People will do almost anything to keep the door of their business open even one more month. We are creatures with poor memories and lots of hope.
We got a 2015 Honda CRV with 0.5% interest rate. Over the life of our 5 year loan, the total finance charges are about $200. Not bad. We'll probably drive it until we wear it out.
We thought our Expedition was pretty classy, but the bluetooth, backup camera, and other features of the CRV are pretty cool.
I have an old bucket Blazer on ebay and I am amazed that so many even care. I’m letting it go since I am not really up to pulling the maintenance and repair I like. It sits way more than I care to. Should get about what I paid for it. Besides the jeeps are easier to work on for me.
I know a girl that just totaled a Honda (model ?). She hit a slick spot and bounced off the concrete divider. The two front and one side airbags deployed, the kicker, she was able to drive the car home. No driveline damage, not even a bent wheel, just scuffed paint and the airbags. The insurance company deemed it totaled, the airbags alone were estimated at $6K to replace.
Only if you get rid of the car before you pay it off. If you keep it past payoff time how long the loan lasted doesn’t matter.
Really, as soon as you drive it off the lot, you're under water (worth less than you owe on it)
Same with the then-new '11 BMW retirement present, will be paid in full 6 months early at 3.0%, and no plans to replace - WAY too much fun to drive.
How about six years Zero interest?
Wow that’s interesting. It’ll be sold with a salvage title but likely a great buy for someone.
I wish Toyota would sell those little pickups again. Cheap, well built and could be bought with just the bare basics. I can’t afford and don’t want all the bells and whistles. Datsun and Nisan had those little trucks, too. Lots on the road back in the day. hussein had more than gas mileage in the works with his cash for clunkers.
Yes in the 80s those 4cyl pickups were everywhere.
My boss back then (who was about 6-3 and 270 pounds) had a Ford Ranger and LOVED it, but he looked like he was 5 sizes too big to fit in it, LOL.
I suppose in the non-rust belt states plenty are still chugging along.
Or worse! Often there's a gap insurance policy attached.
We leased, 3 years, cash out at the end is 16k for a car that you can't for 10K more than that. It's a no brainer for self employed or small biz owner.
You can have cool. All I want are four tires, a steering wheel and a/c with a base sticker price I can pay off before I'm too old to drive.
When I bought a “new” 2003 Honda Accord last year the dealer kept rejecting the price I wanted to pay and stated I could get a new car at 0% for the extended time like 60 or 72 months. The dealer makes more on those extended loans. It looks good until you use a calculator and some common sense.
I knew I could not afford it over the long run. My limit is $10,000 total with tax and all other fees.
Yep. Everyone gets advice to be rational and everyone wants to be rational about vehicles, but few people really are.
My wife wouldn’t be seen in a basic car. So we bought a couple (lower end) luxury vehicles. Since her family (100 miles away) is in the horse business, both cars have a lot more wear and tear than they ought to have from gravel roads and pastures. Short-term leases next time.
I bet the car manufacturers have a chart showing how many miles are on any given car and they are worried the cars are to well built that they cannot make as many sales.
With all the electronic gizmos on the car they might be thinking of throwing a switch and disabling your car from time to time so you think you need a new one....
Prices have gotten too high. $20K+ over three years is more than the average joe can swing.
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