cancel
Showing results for 
Search instead for 
Did you mean: 

Who does 84+ month car loans

Auto Loans for ANY Credit Situation. Immediate Response.
Advertiser disclosure
Highlighted
Member

Who does 84+ month car loans

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. 

Message 1 of 23
22 REPLIES 22
Highlighted
Senior Contributor

Re: Who does 84+ month car loans

Capital One

FICO 8 (Feb 2018):EX- 519, TU- 530, EQ- 545
FICO 8 (Mar 2020):EX- 689, TU- 659, EQ- 651
What's in my wallet:



On the chopping block:

Message 2 of 23
Highlighted
Regular Contributor

Re: Who does 84+ month car loans

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.

Message 3 of 23
Frequent Contributor

Re: Who does 84+ month car loans

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. 

Present Day...Equifax: 765, TransUnion: 778, Experian: 758
Sept. 2016...Equifax: 652, TransUnion: 608, Experian: 597
PenFed CLOC: $500
Message 4 of 23
Highlighted
Valued Contributor

Re: Who does 84+ month car loans

GM is doing 84 months.

Be careful.

Rebuild started in 2014  -  $100k+ unsecured credit in 2017  -  $350k+ unsecured credit in 2020.

DON'T WORK FOR CREDIT CARDS ... MAKE CREDIT CARDS WORK FOR YOU!

5% Rotating - Discover                       5%-20% - Amazon & Lowes                  3-6% Groceries - NFCU & Amex Preferred
3-5% Gas - NFCU & Ducks Unl            4% Dining & Entertain - Savor               3% Travel & Hotels - Flagship, Propel, & Uber
2% Everything Else - Flagship             1% Cancer Charity - Fifth Third             0% Finance Promos - PenFed & Capital One





           
Message 5 of 23
Highlighted
Established Contributor

Re: Who does 84+ month car loans

 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.

 

 

Message 6 of 23
Highlighted
Valued Contributor

Re: Who does 84+ month car loans


@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.

Message 7 of 23
Highlighted
Valued Contributor

Re: Who does 84+ month car loans

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.

FNBO 2% Cashback Visa (20k) / Bank of the West Cashback MC (20k) / US-Bank Cash+ (15k)
FNBO Travel Elite (15k) / Citi Double Cash (20k) / US Alliance 3% (20k)
Ficos : 830 / AAoA : 9 yrs / AoOA : 24 Yrs / AoYA : 0
Message 8 of 23
Highlighted
Community Leader
Senior Contributor

Re: Who does 84+ month car loans

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

EXP 763 TU 793 EQ 734
Message 9 of 23
Highlighted
Community Leader
Super Contributor

Re: Who does 84+ month car loans

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.







Message 10 of 23
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.