topic Re: Who does 84+ month car loans in Auto Loans

Who does 84+ month car loans

Anonymous — Wed, 25 Mar 2020 03:29:35 GMT

Who does 84+ month car loans. My scores on credit karma are both in the 660's only late payments I have will be dropping off my report end of this year.

Re: Who does 84+ month car loans

19eighty5 — Wed, 25 Mar 2020 03:48:07 GMT

Capital One

Re: Who does 84+ month car loans

Anonymous — Wed, 25 Mar 2020 05:14:33 GMT

do you realize how horrible an idea an 84 month car loan is? do you remember where you were during the 3rd month of Obama's second term? That's when a 7 year car loan would have started if you just finished paying it off now..you want to pay for a car for that long...the iPhone 5 was the current iphone...do you get my point? buy less car..that's a horrible idea to take an 84 month period on a depreciating asset.

Re: Who does 84+ month car loans

SarahJo — Thu, 26 Mar 2020 02:05:48 GMT

Yes, please be careful, I personally think 84 month auto loans shouldn't even exist. If you're considering that term during what seems to be a "building credit" period it is a major sign indicating you're not ready for whatever you're looking at if you have to finance it for that long. I love cars (see siggy) I get it, cars have been a major part of my life all my life...but you betcha I drove a dang Daewoo (never figured out what that smell was, air freshener train choo choo) after my divorce and rebuilding my credit with 2 children solely relying on me.

You will get there, it will come sooner than you think with discipline and focus...you wouldn't introduce your 7 year old nephew as "This is Jasper, he's 84 months old," you know? Good luck on whatever path you choose!

P.S. Credit Karma scores are Vantage scores, not FICO, and are hardly used in any credit application consideration. Search the auto approval thread for what type of auto loan lender you are considering and more information can be obtained on ideal score, what type of FICO score used, and interest rates.

Re: Who does 84+ month car loans

Shooting-For-800 — Thu, 26 Mar 2020 10:27:40 GMT

GM is doing 84 months.

Be careful.

Re: Who does 84+ month car loans

Dj4Money — Thu, 26 Mar 2020 19:50:42 GMT

C'mon... 84 months is bad how?

The car might be worth less at the end of the term, so private sale value or trade-in value is lower than it would be at the 60 or 72 month term.

Big deal there are worst things you can do with your money.

Modern cars last 10 years at least with proper maintenance. Hyundai/Kia goes out to 10/100,000 on powertrain. Today's carrots of 0% and 84 months is quite good if you ask me.

You'll see more next month, the problem is 0% helps those who don't need it, not the people who actually need it. Credit is meritocracy based, the better you do with it, the more you're rewarded for it.

But like 2008, this is not normal and most economic activity has stopped. Every captive lender will use the 0%/84 carrot to get you into the showroom next month.

I feel like these questions are philosophical discussions not financial.

Re: Who does 84+ month car loans

iced — Thu, 26 Mar 2020 20:16:50 GMT

@Dj4Money wrote:
C'mon... 84 months is bad how?

The car might be worth less at the end of the term, so private sale value or trade-in value is lower than it would be at the 60 or 72 month term.

Big deal there are worst things you can do with your money.

Modern cars last 10 years at least with proper maintenance. Hyundai/Kia goes out to 10/100,000 on powertrain. Today's carrots of 0% and 84 months is quite good if you ask me.

You'll see more next month, the problem is 0% helps those who don't need it, not the people who actually need it. Credit is meritocracy based, the better you do with it, the more you're rewarded for it.

But like 2008, this is not normal and most economic activity has stopped. Every captive lender will use the 0%/84 carrot to get you into the showroom next month.

I feel like these questions are philosophical discussions not financial.

Oh it's pretty financially objective to say 84 months are bad ideas for car loans. Reasons I can think of:

- While some cars *can* last 10 years, that doesn't mean most people *will* keep them that long. The chances of you being underwater on your loan for the first 4-5 years are very high, which is about how long the typical person keeps their car. This means the typical person is going to trade in their used car while still underwater.

- You're now obliged into a payment for 7 years (unless you pay it off early). 7 years is a long time in which to lose a job, take a pay cut, or have other expenses added that now make that payment uncomfortable. Need a little extra for a mortgage in 4 years? Too bad, you married a car loan.

- If it's not 0%, the interest has more time to compound and add up. No point throwing money away like that.

- If you need a 84 month term to make the payments manageable, you're buying more car than you can afford. These stretched loans only enable that poor financial choice. If you can afford a $450 payment but not a $650 on a 48-60 term you're buying too much car; go find something that's $450 at 48-60 instead or make a larger down payment so it's $450 at 48-60.

Credit should be meritocracy based, because it's not meant (and was never meant) to be easy money for the poor. It's floating a debt for a short period of time in the name of convenience. Using it as a crutch to get through financial hardship is exactly why so many Americans get trapped in debt or end up filing bankruptcy.

Re: Who does 84+ month car loans

Kforce — Thu, 26 Mar 2020 22:01:40 GMT

I remember when the longest car loans were 4 years.

Required 20% down, plus you had to pay license and tax out of pocket.

You were never upside down, and owned it with many years left of good use.

Re: Who does 84+ month car loans

Jnbmom — Thu, 26 Mar 2020 22:06:34 GMT

As others suggested well most, 84 months is a terrible terrible did I mention terrible idea.

Re: Who does 84+ month car loans

Brian_Earl_Spilner — Thu, 26 Mar 2020 22:48:43 GMT

I think a lot of you aren't realizing how the market has changed. Thanks to SUVs, cars are being phased out everywhere. A mid-size starts in the high $20k and full-size starting in the low $50k. Add in desirable features, or even something simple like 4x4, and a full size truck or SUV can get to $80k nowadays. The average person can't afford them and their options are slowly dwindling. Even cars are starting to creep up with the average price being low $30k. 84 month loans will soon be commonplace and I suspect subscription services will become popular. Knock that term length all you want, but it's here to stay.

Re: Who does 84+ month car loans

Anonymous — Thu, 26 Mar 2020 22:50:55 GMT

It's called buy used or save more.

Re: Who does 84+ month car loans

iced — Thu, 26 Mar 2020 23:32:47 GMT

@Anonymous wrote:
It's called buy used or save more.

This. If you can't afford $50k for a new SUV or truck, then a new SUV or truck is out of your price range. You get to buy a 5 or 10 year old used model.

Increase your down payment or accept that you're on a beater budget.

Re: Who does 84+ month car loans

SarahJo — Fri, 27 Mar 2020 00:55:39 GMT

I absolutely accept that the rapid increase of new vehicle pricing directly relates to 7 year auto loans existing, they are not cheap when you want brand new buttons and seats without someone else's french fries under them...and that's not by accident. I'm not going to get into that now, however.

I grew up in a car dealership, started doing inventory on Lincolns at age 9, and man things have changed. I remember the day my father said that the lease is going to be the end of the average American being able to out-right own their own vehicle, and makes sense looking back. The student loan crisis in now, the car loan crisis is here and going to get worse...

Re: Who does 84+ month car loans

Kforce — Sun, 29 Mar 2020 17:30:36 GMT

@Brian_Earl_Spilner wrote:
I think a lot of you aren't realizing how the market has changed. Thanks to SUVs, cars are being phased out everywhere. A mid-size starts in the high $20k and full-size starting in the low $50k. Add in desirable features, or even something simple like 4x4, and a full size truck or SUV can get to $80k nowadays. The average person can't afford them and their options are slowly dwindling. Even cars are starting to creep up with the average price being low $30k. 84 month loans will soon be commonplace and I suspect subscription services will become popular. Knock that term length all you want, but it's here to stay.

It's here to stay but not because of car prices.

Cars have an average rise of 1.7% per year from 1952 to date

Inflation and income numbers are almost twice as large.

Cars cost less in relationship to pay and inflation than they ever have.

Not related to cars costing more.

The long loans are to sell more cars.

It's called greed not need.

Re: Who does 84+ month car loans

Anonymous — Sun, 29 Mar 2020 19:29:40 GMT

@Kforce wrote:
I remember when the longest car loans were 4 years.
Required 20% down, plus you had to pay license and tax out of pocket.
You were never upside down, and owned it with many years left of good use.

Yeah, I remember when cars were $9,999 too. Not so anymore, as well them not being reliable as they once were.

While I also think 84 months is too long for a vehicle, it's not the average consumer's fault that automakers keep putting in "extras" to make them cost more and more. $80K for a regular Ford pickup these days? It's alos true a person can buy used, but as we progress more and more into cars with so much electronics. So becomes more problems with used and the longevity of said electronics. It can cost upwards of $5-8K to replace soem of those now. Which if happend to fail after you bought said vehicle for $10-15K now has an added expence that most cannot absorb in the cost of a "used" car.

It a very differentera than cards of the 70's or 80's, and them being able to be fixed in your own garage.

That said, even if you get a car at 0% for 84 months, it likely will never have positve equity due to depreciation. However, it doesn't mean you have to carry teh full balance for 84 months. You can always make double and triple payments. And if you feel that you'll never trade it in, I guess it doesn't matter. It mainly about what's right/fits for that individual.

Re: Who does 84+ month car loans

Trudy — Mon, 30 Mar 2020 02:55:11 GMT

I don't have an opinion as to whether its a good idea or bad idea as I believe that may simply be the individuals choice. Reducing monthly financial obligations may be a sound reason. Whether one should or not, I believe many people aren't really looking at the total cost when they simply need a manageable payment in most situations. For me personally, I think different with a MTG loan, not so much a car loan.

I know we're talking about an 84m but have heard the same sentiment regarding 72. I chose a 72 month loan , simply to get payments that should I lose my well paying job I could still pay on less income. Even though shorter terms would have been a lower interest rate, the interest for me was relatively low and should something happen, feeling more comfortable/secure that I likely wouldn't lose my vehicle with the lower payment was worth the extra money for me. Purchased 9/2016 and I've paid much more a month which has pushed my payments out to 4/2022. If I make the min payment each month going forward it will be paid for no later than 9/2020 (48m).

When I had unexpected expense I was technically able to make less than the monthly payment or no payment while I worked on reducing that CC balance much quicker. Not that it's important for me at this point but this positively impacts my installment loan% which positively impacts my score.

Said all that to say, it may work for some.

Re: Who does 84+ month car loans

OmarR — Mon, 30 Mar 2020 14:49:42 GMT

@Trudy wrote:
Reducing monthly financial obligations may be a sound reason. Whether one should or not, I believe many people aren't really looking at the total cost when they simply need a manageable payment in most situations.

That's the point that the others are trying to make, and you actually said it yourself perfectly. People are not looking at total cost and that is not financially wise.

I am all for reducing monthly financial obligations. By purchasing a cheaper item, not by stretching out how long I am going to be in debt. But that is just me.

Re: Who does 84+ month car loans

Trudy — Mon, 30 Mar 2020 16:32:51 GMT

@OmarR wrote:
@Trudy wrote:
Reducing monthly financial obligations may be a sound reason. Whether one should or not, I believe many people aren't really looking at the total cost when they simply need a manageable payment in most situations.

That's the point that the others are trying to make, and you actually said it yourself perfectly. People are not looking at total cost and that is not financially wise.

I am all for reducing monthly financial obligations. By purchasing a cheaper item, not by stretching out how long I am going to be in debt. But that is just me.

This is my point. It's an individual's choice for what works for them. Sound advice as I get the math which I think most people get and it's obvious you'll be paying more. But if it works for one's specific needs or situation then outside of the obvious, it works for that person. How much equity do you really get out of a car? Some people are not looking to trade in and up regularly. People choose to pay for a lot of things for various reasons that others wont. Why not wait until one's scores are peak before buying? That will save money. I'm sure not everyone who purchased a vehicle was in the top tier. I chose to pay a little more in interest for the presumed security in having a manageable payment should things go south. Kinda like insurance for me. I'm not encouraging longer terms, just saying a persons specific circumstances, needs and future plans may be the reason one chooses it.

Re: Who does 84+ month car loans

iced — Mon, 30 Mar 2020 16:45:42 GMT

@Trudy wrote:
This is my point. It's an individual's choice for what works for them. Sound advice as I get the math which I think most people get and it's obvious you'll be paying more. But if it works for one's specific needs or situation then outside of the obvious, it works for that person. How much equity do you really get out of a car? Some people are not looking to trade in and up regularly. People choose to pay for a lot of things for various reasons that others wont. Why not wait until one's scores are peak before buying? That will save money. I'm sure not everyone who purchased a vehicle was in the top tier. I chose to pay a little more in interest for the presumed security in having a manageable payment should things go south. Kinda like insurance for me. I'm not encouraging longer terms, just saying a persons specific circumstances, needs and future plans may be the reason one chooses it.

I think the key takeaway from all this is that even if a decision works for an invidivual person in that one case, it doesn't mean it was a good or wise decision. People make terrible decisions all the time that end up working out with little or no harm in the end, but it doesn't change the fact those were terrible choices.

Re: Who does 84+ month car loans

pinkandgrey — Mon, 30 Mar 2020 18:19:12 GMT

Alright, well I guess none of us know your situation so I'll just answer the question as well as I can lol

I believe most dealerships will go to that term. When I bought my Kia last year, the dealership had that as an option. I also looked at Hyundai and they offered it as well. Even if they don't offer it upfront on the little payment sheet, if you ask, they most likely will have it.

Good luck to you in your car buying!