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A Wall Street Journal report says that 1/3 of all new vehicle loans are longer than 6 years...and that 7M people are at least 90 days behind on their payments.
So Alex, I'll take, "Whose fault is it for $1K?"
(So is the fault with the lenders or people who are living beyond their means--or both?)
I say both. There's a large portion of Americans who aren't educated about credit in the home nor school, myself included, hence why I'm here to educate myself. Nonetheless if a person can go to the dealership to apply for a loan that person also knows how much they can actually afford. The lenders are also partly to blame for predatory lending on high risk uninformed borrowers.
Ugh. When I got my first car the typical loan was 3yrs, and 4 yrs was sort of common
this way you can payoff the car, have at least 2 years with no med/large repairs and NO payment, then keep the car as the larger repairs start to happen
i bought a car in 2003 with a 5yr, which seemed long. Paid off in 3. Drove it for 11 more years without a payment.
now with a 6yr loan or more, you will be starting repairs while still paying your monthly. And some will feel the car is OLd and roll right into a new one without a break in payments, or worse trade in an unpaid one and be majorly upside down on day 1 of a new car
Yes I agree that it's both faults I didn't understand ANYTHING until literally 29 when I went to apply for a vehicle under just my name and was stumped by how low my CS was actually and that's when I started to look, dig and build.....I feel like if people understand it better they will do better but I also feel like there are people who don't want people to know/understand so they can profit more.....Butttttttt that may be just me XD
@RSX wrote:Ugh. When I got my first car the typical loan was 3yrs, and 4 yrs was sort of common
this way you can payoff the car, have at least 2 years with no med/large repairs and NO payment, then keep the car as the larger repairs start to happen
i bought a car in 2003 with a 5yr, which seemed long. Paid off in 3. Drove it for 11 more years without a payment.
now with a 6yr loan or more, you will be starting repairs while still paying your monthly. And some will feel the car is OLd and roll right into a new one without a break in payments, or worse trade in an unpaid one and be majorly upside down on day 1 of a new car
Now that's what I'm talking about -- once car is paid off, continue to transfer same amount into a high-interest bearing savings account or CD for 2-4 more years.
But for me it seems there's a showoff factor in play. It seems no one wants to drive a hooptie nowadays. What is this need to want a new car every few years? I mean, seriously.
And think about it. Even those who know the ropes or consider themselves savvy buyers sometimes just don't care. If a consumer's mind is set on a 2020 BMW, he/she doesn't care about the total cost of the vehicle especially if the dealer says, "Okay I can get you in that car for $665/month," that's all the consumer hears or wants to hear. He doesn't care, at that moment in time, about paying for 96 months at an interest rate of 6.29% if he can drive out of the dealership in the car of his dream.
I believe that 100%, have you ever wandered over to the auto loan approval thread on here😕 There us soon many questionable deals.
72 or sometimes 84 month terms, high rates, and their car price is close to their income at times 😯
There is always a price to be paid for being stupid when it's not absolutely necessary.
I'm not inclined to blame those who offer those terms, but like @Jnbmom said, if you feel like you should buy a car that's more than what you make in a year or two ....you kinda deserve that car and everything that comes afterwards.
@CreditInspired Oh I agree with that 1000% we even tell people no you should wait and it's like it goes right over their head and they go I don't care I am not leaving without it.......SMH
@Jnbmom wrote:I believe that 100%, have you ever wandered over to the auto loan approval thread on here😕 There us soon many questionable deals.
72 or sometimes 84 month terms, high rates, and their car price is close to their income at times 😯
Hmmmm. Let me wander on over there and read about this ridiculousness.
Thanks jnbmom for the heads-up.