You are right. :-) 
Posted on 02/15/2020 3:51:48 AM PST by karpov
My credit union will make 64-75 month loans on cars aged 2013 or older for 6% The car has to a value of at least $15K. I would assume the rate would be for someone with a decent credit score..
I MIGHT take one, if they gave it to me and contracted to pay the excise tax on it until it became un-repairable in about five years.
A while back I drove an old 80's Tercel to it's breaking point. At the end it developed dozens of problems, but it's swansong was a drive to the junk yard because it developed an exhaust leak into the cab. It was amazingly comfortable otherwise, and I could drive it CA to CO for a pittance in gas.
Five out of the last six cars that I have bought were factory-certified used. These are 1-2 year old vehicles that have many years left on their original warranty and are severely discounted because someone else paid the new car depreciation. I paid cash for these used cars. In my opinion, this is the best way to go.
I told the investigating officer to charge him with anything short of a felony.
He was charged with use of a motor vehicle without permission. He served 30 days, 1 year probation and lost his license for 1 year.
You are right. :-)
anyone notice that college is the one that has increased the most 64x vs eggs about 3x-all that federal $s and loans
I’ve told all the youngsters in my family if they want to drive a new car every two years they better enjoy them because it will cost two million dollars. The smart ones stopped trading in/up.
The mileage has to be factored in. It carries a lot of weight. A 2018 with 225K is just a high risk, irrespective of the model year. The lender also considers the relative life expectancies of the vehicle. There is a lot of junk out there that even if they’re late models represent too high of a risk for a lender to go 48-72 months.
Btw, 6% is a crappy rate. A Tier 1 buyer should be closer to 3-4%.
This is why new car financing can be so much less expensive. The vehicle’s life expectancy is much longer = less risk to the lender if they have to pop it. Don’t worry, the depreciation is built in, you’re paying it.
The best car to buy is used with less than 20-24K on it. It’s functionally brand new, but someone else paid the depreciation. Just get the CarFax and be sure the original owner did all of the recommended service during the break in period.
And don’t buy a stupid car.
I checked the fine print again on the CU webpage. They don’t mention anything about mileage. They use the NADA Blue Book and the car has to be worth $7.5K+ or personal loan rates apply. I would venture to guess there are other disclaimers that aren’t listed on the webpage.
Mileage matters.
Ask them what rate they would give you on a 2018 Nissan Versa with 195K on it. (Hypothetically, of course. Not sure such a phenomenon is possible).
I assumed they’d get the new loan before everything fell apart on the original one; if not, the dealerships will simply get the deadbeat buyer a high interest rate loan on the new car.
They may also be doing this if they know the numbers and understand the buyer won’t owe anything on the old car (after repo and sale).
The Nada website says the car is worth under $4K. So if I were to seek a loan at my CU I would pay 10% for a personal unsecured loan. Secured personal loans are around 6.5%.
Exactly.
Quoting the Bible to justify doing what we want to do anyway has a long and storied history with us. So lets go for it!
Now the economic history I studied and I suspect is rarely studied today, talked about cycles that regularly happened.
https://en.wikipedia.org/wiki/Business_cycle
These cycles as well as other science, is discovering the patterns of God’s design. The major cycle is 70 years, very close to the 50 years but in general one generation. If we won’t follow the year of Jubilee, it would appear God put in in place anyway.
I would even propose that debt forgiveness and starting over is part of God’s design, even in economics.
Whereas Moses system never took more than 10%
The one that most fascinates me is the one that says take 10% and go throw a “party”. There is a promise associated with this one if any one cares to search for it. I will let the reader do their own research on this.
But back to the article. This is all part of the business cycle. Investors are greedy and want an easy return and get it for a period of time.. The lenders receive a fee for getting the loan done. The car sellers sell a new car that would not get sold otherwise. We get to buy newer cars at an affordable price.
Looks like the system is working.............................
Looks like the system is working.............................
Thanks PeterPrinciple! I liked your thought provoking comments very much.
You are getting into the proper use of the law I think. The underlying principles of it are connected to God’s own sense of justice, and do NOT change, and you are completely correct in looking deeply at and understanding them.
I certainly would not project to you fine FRiend what I said about biblical justification. That applies to those who are advocating the theft of money under the guise of “college loan forgiveness” and “stop paying your car loan” and will use the Bible to justify it.
Stealing from thieves is not OK, but I am happy to steal from “greedy” investors! Of course we would never use the word “steal” to describe it, you know.
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