Penfed - New auto loans up to 84 months now.

[Anonymous]

Check it out.  They were locked to 72 months up until just a few days ago.  Now their loans show up to 84 months and rates at 2.99%

https://www.penfed.org/New-Auto-Loan/

[Anonymous]

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@Anonymous wrote:

Check it out.  They were locked to 72 months up until just a few days ago.  Now their loans show up to 84 months and rates at 2.99%

https://www.penfed.org/New-Auto-Loan/

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Thanks for sharing.  I hope anyone considering 84 or even 72 month financing seriously think about it first.  A large number of people bury themselves in a car because they want lower payments and then finance for 6 or 7 years.  Very few people end up wanting to keep their cars for that long and when they go to trade it in they find that they owe a lot more on it than what it's worth. Extended financing makes this problem even worse.  Just s friendly word of caution.

[Anonymous]

Just wow.  Feels like just a matter of time before we see 10 year note offerings.

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

Check it out.  They were locked to 72 months up until just a few days ago.  Now their loans show up to 84 months and rates at 2.99%

https://www.penfed.org/New-Auto-Loan/

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Thanks for sharing.  I hope anyone considering 84 or even 72 month financing seriously think about it first.  A large number of people bury themselves in a car because they want lower payments and then finance for 6 or 7 years.  Very few people end up wanting to keep their cars for that long and when they go to trade it in they find that they owe a lot more on it than what it's worth. Extended financing makes this problem even worse.  Just s friendly word of caution.

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I agree, but I don't see the problem if the buyer is responsible with money.  They may end up owing $2000 when they go to trade-in or they did a shorter loan term and owe $0 but they paid an extra $2000 in higher payments.  So it's $2000 now or $2000 later, but it's roughly the same $2000.  Why not keep your money longer if you are getting a similar or better interest rate either way?

(not arguing, just genuinely trying to understand)

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

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@Anonymous wrote:

Check it out.  They were locked to 72 months up until just a few days ago.  Now their loans show up to 84 months and rates at 2.99%

https://www.penfed.org/New-Auto-Loan/

---

Thanks for sharing.  I hope anyone considering 84 or even 72 month financing seriously think about it first.  A large number of people bury themselves in a car because they want lower payments and then finance for 6 or 7 years.  Very few people end up wanting to keep their cars for that long and when they go to trade it in they find that they owe a lot more on it than what it's worth. Extended financing makes this problem even worse.  Just s friendly word of caution.

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I agree, but I don't see the problem if the buyer is responsible with money.  They may end up owing $2000 when they go to trade-in or they did a shorter loan term and owe $0 but they paid an extra $2000 in higher payments.  So it's $2000 now or $2000 later, but it's roughly the same $2000.  Why not keep your money longer if you are getting a similar or better interest rate either way?

(not arguing, just genuinely trying to understand)

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Just my opinion but those that are responsible with money (using your term) do not put themselves in 7-year auto loans.  You are ripe for a situation of getting upside down in short order.  Just because a buyer can offord the $2,000 does not equal responsbile, just means they can afford the loss.  If you need a 7-year loan due to a payment ceiling then you are buying too much car for what a person can responsibly afford.

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

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@Anonymous wrote:

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@Anonymous wrote:

Check it out.  They were locked to 72 months up until just a few days ago.  Now their loans show up to 84 months and rates at 2.99%

https://www.penfed.org/New-Auto-Loan/

---

Thanks for sharing.  I hope anyone considering 84 or even 72 month financing seriously think about it first.  A large number of people bury themselves in a car because they want lower payments and then finance for 6 or 7 years.  Very few people end up wanting to keep their cars for that long and when they go to trade it in they find that they owe a lot more on it than what it's worth. Extended financing makes this problem even worse.  Just s friendly word of caution.

---

I agree, but I don't see the problem if the buyer is responsible with money.  They may end up owing $2000 when they go to trade-in or they did a shorter loan term and owe $0 but they paid an extra $2000 in higher payments.  So it's $2000 now or $2000 later, but it's roughly the same $2000.  Why not keep your money longer if you are getting a similar or better interest rate either way?

(not arguing, just genuinely trying to understand)

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Just my opinion but those that are responsible with money (using your term) do not put themselves in 7-year auto loans.  You are ripe for a situation of getting upside down in short order.  Just because a buyer can offord the $2,000 does not equal responsbile, just means they can afford the loss.  If you need a 7-year loan due to a payment ceiling then you are buying too much car for what a person can responsibly afford.

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Thanks for the reply, but that doesn't answer my question.  I'm not asking about needing a lower payment on a car a person can't afford.  

[darwin_wins]

I really hope not. No one should be applying for 72 month loan either, max should be 48 months any more than that is just a bad decision IMHO

[Anonymous]

Wow, there are a lot of opinions.  I make my financial decisions based on math, not the approval of others.  What makes it a bad decision mathematically?  

For example, when I got my recent auto loan, I got a really good interest rate.  The interest rate was actually lower on the 72 month loan.  Why should I pay a higher interest rate for a 48 month loan?  There's no question of me not affording the payment either way.  Why pay more when I can pay less?  I'm genuinely wondering if I'm missing something here (in the math, not in the disapproval of strangers).

[Anonymous]

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@Anonymous wrote:

Wow, there are a lot of opinions.  I make my financial decisions based on math, not the approval of others.  What makes it a bad decision mathematically?  

For example, when I got my recent auto loan, I got a really good interest rate.  The interest rate was actually lower on the 72 month loan.  Why should I pay a higher interest rate for a 48 month loan?  There's no question of me not affording the payment either way.  Why pay more when I can pay less?  I'm genuinely wondering if I'm missing something here (in the math, not in the disapproval of strangers).

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Ok, no more opinion.  What is the rate for 72 months versus the rate for 48 months?

[Anonymous]

72 - 2.74%

84 - 2.99%