Americans continue to take out auto loans higher than the vehicle is worth

[crashtech]

It's so irritating when salespeople want to talk about monthly payments. It's very indicative about their methods and where the average buyer is mentally. I just tell them I'll talk to the finance guy about that, never revealing I always go pre-approved from my CU anyway.

 

[AdamK47]

Auto loan debt keeps climbing.

U.S. Car Loan Debt Hits Record High Of $1.56 Trillion

More that 100 million Americans have some form of a car loan.

jalopnik.com

Still not contributing to that total even with my recent purchase.

 

[amdhunter]

Gonna hit 100k on my 13' Escape sometime this month. I pray every day that the transmission doesn't give, since they are known to spontaneously combust.
I plan to drive it into the ground and never buy another vehicle again.

 

[GodisanAtheist]

Work at a financial institution and work closely with our consumer lending group.

In 2019 average auto loan term for us was 58 months and average loan value was $20k. YTD 2023 we're looking at a term of 62 months and value of $32k.

It's absolutely insane, more than 50% increase in funded loan value in 3.5 years. And we're a very conservative lender. FICO less than 680 and you're on thin ice, underwriting is gonna be up your ass. Less than 620 and we won't even bother.

 

[AdamK47]

I did have an auto loan recently. For a week and a half. When I bought my second R8 I had $155K available right away. Needed an additional $60K, but it was tied up in securities. Took out a loan, sold some positions, and paid it off as soon as possible. The total cost of the loan was a bit over $300. Small origination fee and the week of accrued interest. The loan was at 6.8%. That didn't matter much in the end.

 

[BoomerD]

I think they're already ahead of you...

Vehicle Rates - Americo FCU

Rates as of August 1st, 2023 Autos & Motorcycles (2019 & Newer) Autos & Motorcycles (2019 & Newer) APR* as low as Term 2 Payment example 5.99% ** 36 months $304.25 6.49% ** 60 months $195.68 7.49% ** 72 months $172.92 7.99% ** 84 months $155.88 9.49% ** 120 months*** $129.42 Autos & Motorcycles...

www.americofcu.com

Autos & Motorcycles (2019 & Newer)

APR* as low as	Term	2 Payment example
6.49% **	36 months	$306.41
6.99% **	60 months	$197.95
7.99% **	72 months	$175.27
8.99% **	84 months	$160.83
10.49% **	120 months***	$134.88

Damn...makes me really appreciate my 0% truck loan.

Roughly 40% of jobs can be done fully from home. Yes, there are many jobs that require travel from home. But, they certainly don't need to live so far from work as they currently do.

For way more years than I want to think about, I drove 70, 80, even 120 miles each way, 6-7 days per week. I didn't have the option of moving closer...Bay area housing costs are stupidly expensive...besides, I might be on a job in San Jose for a couple of months, then into SF for a month or three, then someplace in the North Bay for a few months...then, I might be in Sacramento for a few weeks...or months, down to Fresno for a time...I just never knew where I was going until I got dispatched. It was RARE as hell for me to work a job less than 50 miles from home...in my last 10 years working construction, I think it happened 3 times. A couple of times for about 6 months and once for a few weeks...I could stand in my front yard and see the boom of the crane sticking up above the treetops. Unfortunately, a couple of those jobs were only 40 hours/week jobs...fuck that. I wanted to work at least 60 hours per week.

 

[Fenixgoon]

While I am eager to replace my car with an electric vehicle, at the same time....no payment is the best kind of payment.

 

[[DHT]Osiris]

I've recently been driving an in-laws' CR-V they just bought (good deal, 2019 with 15k miles I think? For 28k or so). I really like the android auto stuff but I'm really loathe to sell either my '10 Camaro or '07 tundra for a car payment and something like that.. an inexpensive electric maybe but even those are like 30k+ used. I simply can't afford that anymore.

 

[kranky]

Cause you need an f'ing car to exist and car companies/dealers figured out that they have been undercharging people for a necessity this whole time.

What are you gonna do, boycot buying a car and take 5 hours getting to and from work using public transit every morning?

Where I worked the immediate area started to be built up with kind of fancy apartment buildings. And then a decent number of co-workers moved into these buildings and sold their cars, going all Uber and Zipcar for the times they needed one, and started to walk to work. There were two Zipcar spots right outside the office building.

 

[Greenman]

Cause you need an f'ing car to exist and car companies/dealers figured out that they have been undercharging people for a necessity this whole time.

What are you gonna do, boycot buying a car and take 5 hours getting to and from work using public transit every morning?

Take a look at what's selling. No one buy's basic transportation. Power windows, door locks, seats, mirrors, son roof, and trunk lid. Then add heated leather seats, a howitzer sound system with 10 speakers, shiny rims, cruse control, a 19" screen to display all the information you don't need to drive, alarm, remote start, power running boards, and lets not forget all of the driver assist features. You end up paying $60k for a $30k car.

People love gadgets and fashion accessories, cars fit both categories and lots of people will pay the price for them.

 

[Kaido]

I think they're already ahead of you...

Vehicle Rates - Americo FCU

Rates as of August 1st, 2023 Autos & Motorcycles (2019 & Newer) Autos & Motorcycles (2019 & Newer) APR* as low as Term 2 Payment example 5.99% ** 36 months $304.25 6.49% ** 60 months $195.68 7.49% ** 72 months $172.92 7.99% ** 84 months $155.88 9.49% ** 120 months*** $129.42 Autos & Motorcycles...

www.americofcu.com

Autos & Motorcycles (2019 & Newer)

APR* as low as	Term	2 Payment example
6.49% **	36 months	$306.41
6.99% **	60 months	$197.95
7.99% **	72 months	$175.27
8.99% **	84 months	$160.83
10.49% **	120 months***	$134.88

Holup...I can get a TEN YEAR LOAN & only have to pay $135 a month?? BE RIGHT BACK

 

[Brainonska511]

Is this a surprise?

Americans like to buy way more vehicle than they really need, after decades of auto industry propaganda, I mean advertising, that has absolutely convinced them that they need and want a Canyanero XL.

 

[NutBucket]

I've recently been driving an in-laws' CR-V they just bought (good deal, 2019 with 15k miles I think? For 28k or so). I really like the android auto stuff but I'm really loathe to sell either my '10 Camaro or '07 tundra for a car payment and something like that.. an inexpensive electric maybe but even those are like 30k+ used. I simply can't afford that anymore.

The sad part is that's considered a good deal now. Inflation is real...

 

[[DHT]Osiris]

Take a look at what's selling. No one buy's basic transportation. Power windows, door locks, seats, mirrors, son roof, and trunk lid. Then add heated leather seats, a howitzer sound system with 10 speakers, shiny rims, cruse control, a 19" screen to display all the information you don't need to drive, alarm, remote start, power running boards, and lets not forget all of the driver assist features. You end up paying $60k for a $30k car.

People love gadgets and fashion accessories, cars fit both categories and lots of people will pay the price for them.

Shopped recently? Half that shit comes on the overpriced 'base' models now, and the base model doesn't include some killer feature that many consider to be basically mandatory, so you get the other half of the useless shit if you deign to want AWD/4WD in the north.

 

[K1052]

Shopped recently? Half that shit comes on the overpriced 'base' models now, and the base model doesn't include some killer feature that many consider to be basically mandatory, so you get the other half of the useless shit if you deign to want AWD/4WD in the north.

Truck customers are basically the ultimate marks besides military guys looking at Chargers and Mustangs. They'll just pay whatever.

 

[Greenman]

Shopped recently? Half that shit comes on the overpriced 'base' models now, and the base model doesn't include some killer feature that many consider to be basically mandatory, so you get the other half of the useless shit if you deign to want AWD/4WD in the north.

If the "killer feature" is what you want, then you're going to pay whatever the nice salesmen say's your going to pay.
As long as the public keeps coughing up cash the dealers are going to keep jacking up prices.

 

[Greenman]

Truck customers are basically the ultimate marks besides military guys looking at Chargers and Mustangs. They'll just pay whatever.

Who doesn't want a brodozer?

 

[[DHT]Osiris]

Truck customers are basically the ultimate marks besides military guys looking at Chargers and Mustangs. They'll just pay whatever.

I resemble that remark. I got a Camaro though, not a Mustang. Given the upselling on that when I got it though, I felt like I was robbing them at MSRP.

 

[[DHT]Osiris]

If the "killer feature" is what you want, then you're going to pay whatever the nice salesmen say's your going to pay.
As long as the public keeps coughing up cash the dealers are going to keep jacking up prices.

What I meant was, there aren't models without much of the goofy shit you listed included to some extent, and all of it if you need literally anything over the base model. Those things, if stripped off, could save another 5k on materials maybe (though it'd probably increase 6k on factory tooling efficiency loss...)

 

[A///]

I've never believed in payments because of the interest. I've bought every car by haggling and then giving them a certified check, wire or direct funds transfer/ach/eft for the vehicle in full after we sign on a price. I've bought 20 cars this way and only had 2 dealers give me trouble which led me to walking out and buying the same vehicle from another dealer.

I've recently been driving an in-laws' CR-V they just bought (good deal, 2019 with 15k miles I think? For 28k or so). I really like the android auto stuff but I'm really loathe to sell either my '10 Camaro or '07 tundra for a car payment and something like that.. an inexpensive electric maybe but even those are like 30k+ used. I simply can't afford that anymore.

In laws? I had you pegged at mid 60s. How old are they? or you for that matter.

 

[A///]

I did have an auto loan recently. For a week and a half. When I bought my second R8 I had $155K available right away. Needed an additional $60K, but it was tied up in securities. Took out a loan, sold some positions, and paid it off as soon as possible. The total cost of the loan was a bit over $300. Small origination fee and the week of accrued interest. The loan was at 6.8%. That didn't matter much in the end.

What I get from this is that we'll be having a party on your boat next year and you'll invite some forum members?

 

[GodisanAtheist]

What I get from this is that we'll be having a party on your boat next year and you'll invite some forum members?

-Monkey's paw curls... We'll be invited as the entertainment to be hunted for sport on Adam's private island.

 

[A///]

-Monkey's paw curls... We'll be invited as the entertainment to be hunted for sport on Adam's private island.

dude probably owns an old fighter aircraft with 30 cals on the tips. your post reminded me of that old film the pest with whats his face who does that history channel beer show.

 

[[DHT]Osiris]

I've never believed in payments because of the interest. I've bought every car by haggling and then giving them a certified check, wire or direct funds transfer/ach/eft for the vehicle in full after we sign on a price. I've bought 20 cars this way and only had 2 dealers give me trouble which led me to walking out and buying the same vehicle from another dealer.


In laws? I had you pegged at mid 60s. How old are they? or you for that matter.

75, and 40, respectively.

Gen X, 30 since 10, still 30 at 50.

 

[K1052]

I resemble that remark. I got a Camaro though, not a Mustang. Given the upselling on that when I got it though, I felt like I was robbing them at MSRP.

As long as the APR isn’t like 25% you did ok.