LexFather

http://www.cnbc.com/id/23483123/site...t%7C&par=yahoo

9-Year Auto Loans?! 'Crazy' But True!
Posted By:Phil LeBeau
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Here's something that should make you realize what crazy times we are living in: 9-year auto loans are popping up around the country. That's right, it wasn't a typo. Nine years! 108 months! Almost a third of the time used to pay off a conventional mortgage!

I talked with a dealer on the East Coast the other day, who wrote his first 9-year loan. What's the first word out of his mouth after telling me about the new loan? "Crazy."

Yeah, that's one word for it. I've got several others, but I'll save them.

This is part of a trend we've seen for some time, with new-car buyers moving towards longer and longer re-payment terms. In fact, the average auto loan is now 64 months. Makes me laugh to think of the quaint days when re-paying a loan in 36 months was the standard.

All of this has to do with buyers wanting the lowest possible auto loan payment every month. I can't blame them for that. But are people actually thinking this through when they sign up today for a loan they could conceivably be paying it off in 2017?

Even more of a concern is whether or not these people will be "upside down" on their auto loan if they try to trade out for a newer model in a few years. Believe me, it will happen.

Blame it on the struggling economy. Blame it on our desire to get a new car with a low monthly payment. Or blame it on dealers and lenders doing whatever they can to "put you in that new car." The fact is, we are seeing longer auto loans, and there's no reason to see that trend changing.

Anybody out there in the market for a 10-year auto loan?

GRAND_LS 4

iTrader: (2)

Wow, they just keep coming out with new ways to keep customers in debt longer and longer.

What ever happened to saving money?

Or that other thing called, if you cant afford it, don't buy it.

The more money you barrow, the better the chances you will stay in debt for the rest of your life. So not only do you have to deal with Taxes, but interest on top.

LEXUS_KID

iTrader: (4)

Imange how much that car will cost you after all that % on the loan. Probally the first 2-4 year will be %

CK6Speed

iTrader: (1)

Maybe I can buy that Audi R8 after all

tex2670

THIS is the solution to approving every borrower *****-nilly for loans they could not afford? I can't believe in the current climate of the credit markets that they respond with this.

shern

iTrader: (6)

HMMMMMMMMMM............

bigmalik00

why not, the guy at the dealership is trying to tempt me.. I sat in the Lambo twice. I think I would enjoy the car for at least 10 years. You only live once. I just have to shake Uncle Sam off of me and I might then sign my life away...

Och

iTrader: (3)

I think this is awesome! You can get a car with the lowest monthly payment possible, and once you get tired of it a couple years later, set it on fire and let your insurance company take over the payment

shern

iTrader: (6)

I wonder if GAP insurance is available on a $100k vehicle with a 9 year loan?

Faymester

man, i'm with you. if you have to pay for your car over 9 years, maybe you should drive a cheeper car.

Och

iTrader: (3)

What if it is a Honda Civic you're taking the 9 year loan for?

okcfunky

If you need a 9 year loan for a Civic, you need to reevaluate your financial needs and shift ideals.

9 year auto loan? Wow... they are desperate to keep consumer debt on the books.

A 9 year loan on a Lambo would be a bad deal. Fun, but horrible idea... Unless you were picking up one of the plethora of used ones for ~110K.

bitkahuna

iTrader: (20)

With the increasing complexity of cars to manage emissions, fuel economy, safety, reliability and an unending list of electronic widgets, no matter how hard Toyota and others keep trying to reduce costs, cars are going to get more expensive.

And with massively increasingly healthcare, fuel, food, and tuition costs, among other things, people are going to be big time squeezed to buy a new car, so expect MORE of this.

I expect leasing to become more than 50% of the market in the next few years as people cannot come up with a downpayment and don't want to commit for 9 years of purchase.

bitkahuna

iTrader: (20)

No, they just want low payments which is how most cars are sold because people can't or won't do the math.

CK6Speed

iTrader: (1)

Now if they offered 0% financing on this 9 year deal I'm all over it