9-Year Auto Loans?! 'Crazy' But True!
03-06-08, 03:06 PM
#16
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Join Date: Mar 2002
Location: Washington
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03-06-08, 03:07 PM
#17
This is exactly how the housing market got out of hand in the first place.
Many folks buying houses they have no business living in, now where are with all of this?
Now it's the Auto-Industry's turn.
The government better get a handle on this, and quickly!
Many folks buying houses they have no business living in, now where are with all of this?
Now it's the Auto-Industry's turn.
The government better get a handle on this, and quickly!
03-06-08, 03:24 PM
#18
The way I look at things, you need to take advantage when it makes sense. Obviously I and most of use here are joking when we say 0% loan for 9 years and 9 year warranty as that will never happen, but if a bank was actually dumb enough to give that loan I'd take advantage of it.
Last edited by CK6Speed; 03-06-08 at 08:09 PM.
03-06-08, 07:50 PM
#19
Lexus Champion
We have become a nation of 'payment minimizers', only focussed on the monthly cost. Most people aren't concerned with the purchase price, only with the monthly carrying cost. That is true for cars, and more recently, housing.
Americans have no clue to personal finance. The whole idea of interest rates, compound interest, and other financial basics are lost on them. But no problem, the government seems ever more willing to bail out these people. In the past they were called 'losers', now they are 'victims'.
Americans have no clue to personal finance. The whole idea of interest rates, compound interest, and other financial basics are lost on them. But no problem, the government seems ever more willing to bail out these people. In the past they were called 'losers', now they are 'victims'.
03-06-08, 08:13 PM
#22
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I think this is GREAT news. In Canada, its not uncommon to see 0% purchase financing for 60 or 72 months. Mazda, Hyundai, and the Big 3 Detroit do this frequently. When its time for a new vehicle financing will be a large factor.
Its like credit cards, many people purchase when they don't have the cash, and that is their own choice. This risk is ours. But if you are smart and know you can continue payments/pay off the car at any point, why not stretch the payments and increase your cashflows?
Its like credit cards, many people purchase when they don't have the cash, and that is their own choice. This risk is ours. But if you are smart and know you can continue payments/pay off the car at any point, why not stretch the payments and increase your cashflows?
03-07-08, 10:25 AM
#23
Here is my take.
I work for a large, well known auto finance company. We don't offer anything longer than a 72 month term on an auto loan due to risk. Anything longer, and you will be burried in your loan for a long time!
As to units to qualify for this long term, well many lenders require a minimum of $30K to finance to get 84 month terms. So, to get 9 years, I am sure you must finance $40K or $50K. This is not for the Honda Civic.
I am also sure that your credit must be super prime, with FICO scores above 730 to qualify for this extended term.
But, buttom line, most customer shop for cars and want to know what their monthly payment is, rather than how much the sales price is. Dealers love payment shoppers. It means profit!! Longer terms mean lower payments. It also allows F&I to tag on extended warranty, GAP, LA&H, and keep the payment low. Easy close on the customer.
My advise to all of you....stick with the 60 month term or less ALWAYS! Go 36, 42, or 48 if you can. Even 54 months if possible. If you can't afford it unless you go longer than 60, pick a cheaper car. The shorter the term, the better off you will be.
I work for a large, well known auto finance company. We don't offer anything longer than a 72 month term on an auto loan due to risk. Anything longer, and you will be burried in your loan for a long time!
As to units to qualify for this long term, well many lenders require a minimum of $30K to finance to get 84 month terms. So, to get 9 years, I am sure you must finance $40K or $50K. This is not for the Honda Civic.
I am also sure that your credit must be super prime, with FICO scores above 730 to qualify for this extended term.
But, buttom line, most customer shop for cars and want to know what their monthly payment is, rather than how much the sales price is. Dealers love payment shoppers. It means profit!! Longer terms mean lower payments. It also allows F&I to tag on extended warranty, GAP, LA&H, and keep the payment low. Easy close on the customer.
My advise to all of you....stick with the 60 month term or less ALWAYS! Go 36, 42, or 48 if you can. Even 54 months if possible. If you can't afford it unless you go longer than 60, pick a cheaper car. The shorter the term, the better off you will be.
03-07-08, 02:00 PM
#24
Lexus Champion
I think about 80% of the new cars in Orange County are leased.
That's the only way 25 year-old Chicks who work at the friggin' Sunglass Hut can afford a new CLK 320 Cab (Mommy and Daddy paid the downpayment). Ridiculous.
For example, to purchase a $99,000.00 S-Class (there is one on every corner here) financed for 60 months (5 years) with $5000 down and 7.75% sales tax is $1800/month... about what my house payment is!
Based on 36 months, that's $2850/month. Ouch.
Wonder how many of these cars will even on the road after 9 years? If they are, the're likely beaten, scratched, dented, and not exactly "well maintained." If you're THAT much of a stretcher, you probably can't afford an oil change and new tires.
Let them drive Tatas (Indian car for $2500)
That's the only way 25 year-old Chicks who work at the friggin' Sunglass Hut can afford a new CLK 320 Cab (Mommy and Daddy paid the downpayment). Ridiculous.
For example, to purchase a $99,000.00 S-Class (there is one on every corner here) financed for 60 months (5 years) with $5000 down and 7.75% sales tax is $1800/month... about what my house payment is!
Based on 36 months, that's $2850/month. Ouch.
Wonder how many of these cars will even on the road after 9 years? If they are, the're likely beaten, scratched, dented, and not exactly "well maintained." If you're THAT much of a stretcher, you probably can't afford an oil change and new tires.
Let them drive Tatas (Indian car for $2500)
03-07-08, 03:06 PM
#25
I think about 80% of the new cars in Orange County are leased.
That's the only way 25 year-old Chicks who work at the friggin' Sunglass Hut can afford a new CLK 320 Cab (Mommy and Daddy paid the downpayment). Ridiculous.
For example, to purchase a $99,000.00 S-Class (there is one on every corner here) financed for 60 months (5 years) with $5000 down and 7.75% sales tax is $1800/month... about what my house payment is!
Based on 36 months, that's $2850/month. Ouch.
Wonder how many of these cars will even on the road after 9 years? If they are, the're likely beaten, scratched, dented, and not exactly "well maintained." If you're THAT much of a stretcher, you probably can't afford an oil change and new tires.
Let them drive Tatas (Indian car for $2500)
That's the only way 25 year-old Chicks who work at the friggin' Sunglass Hut can afford a new CLK 320 Cab (Mommy and Daddy paid the downpayment). Ridiculous.
For example, to purchase a $99,000.00 S-Class (there is one on every corner here) financed for 60 months (5 years) with $5000 down and 7.75% sales tax is $1800/month... about what my house payment is!
Based on 36 months, that's $2850/month. Ouch.
Wonder how many of these cars will even on the road after 9 years? If they are, the're likely beaten, scratched, dented, and not exactly "well maintained." If you're THAT much of a stretcher, you probably can't afford an oil change and new tires.
Let them drive Tatas (Indian car for $2500)
but yeah, i am pretty sure most cars around here are leased as well
03-07-08, 06:27 PM
#26
I think about 80% of the new cars in Orange County are leased.
That's the only way 25 year-old Chicks who work at the friggin' Sunglass Hut can afford a new CLK 320 Cab (Mommy and Daddy paid the downpayment). Ridiculous.
For example, to purchase a $99,000.00 S-Class (there is one on every corner here) financed for 60 months (5 years) with $5000 down and 7.75% sales tax is $1800/month... about what my house payment is!
Based on 36 months, that's $2850/month. Ouch.
Wonder how many of these cars will even on the road after 9 years? If they are, the're likely beaten, scratched, dented, and not exactly "well maintained." If you're THAT much of a stretcher, you probably can't afford an oil change and new tires.
Let them drive Tatas (Indian car for $2500)
That's the only way 25 year-old Chicks who work at the friggin' Sunglass Hut can afford a new CLK 320 Cab (Mommy and Daddy paid the downpayment). Ridiculous.
For example, to purchase a $99,000.00 S-Class (there is one on every corner here) financed for 60 months (5 years) with $5000 down and 7.75% sales tax is $1800/month... about what my house payment is!
Based on 36 months, that's $2850/month. Ouch.
Wonder how many of these cars will even on the road after 9 years? If they are, the're likely beaten, scratched, dented, and not exactly "well maintained." If you're THAT much of a stretcher, you probably can't afford an oil change and new tires.
Let them drive Tatas (Indian car for $2500)
03-07-08, 08:43 PM
#30
Lexus Fanatic
iTrader: (20)
I would like a 200 year car loan of $2/month for a Lambo. 
