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What are People Thinking?? Average new Car Loan now at 6 years

I bought my last car for cash. Now I can save money every month for my next car and keep all the interest. I was so happy to get away from having to finance.
 
Heh, at this point I'll be killing a car every 3 years putting 150,000 miles on it. I need 3 year payment plans, not 6 years. :Q
 
Sadly, most people have a poor grasp of economics and personal finance.

The ONLY way I would get a long-ass loan like that would be if I was getting 0% and I was certain that I would keep the car for a very long time. Even then, I'd hesitate because you'd build equity so slowly that Gap insurance would be a necessity.
 
Originally posted by: BigSmooth
Sadly, most people have a poor grasp of economics and personal finance.

The ONLY way I would get a long-ass loan like that would be if I was getting 0% and I was certain that I would keep the car for a very long time. Even then, I'd hesitate because you'd build equity so slowly that Gap insurance would be a necessity.
Click to expand...

Low interest rates and long loans go hand in hand, that is why the average loan length is so high. Like the article says, Isuzu offers a 72 month loan now
 
I chose 5 year financing at 3.5% for the IS300, It might even be 3.45%

It was an alternative for me instead of purchasing a used 2002 Nissan Maxima SE fully loaded for $25k + ttl + like 7% interest.
 
Originally posted by: isekii
I chose 5 year financing at 3.5% for the IS300, It might even be 3.45%

It was an alternative for me instead of purchasing a used 2002 Nissan Maxima SE fully loaded for $25k + ttl + like 7% interest.
Click to expand...
factor in residual value and your cost of ownership is WAY higher...
 
Originally posted by: isekii
I chose 5 year financing at 3.5% for the IS300, It might even be 3.45%

It was an alternative for me instead of purchasing a used 2002 Nissan Maxima SE fully loaded for $25k + ttl + like 7% interest.
Click to expand...

So how much is that car going to end up costing you?
 
Originally posted by: Mwilding
Originally posted by: isekii
I chose 5 year financing at 3.5% for the IS300, It might even be 3.45%

It was an alternative for me instead of purchasing a used 2002 Nissan Maxima SE fully loaded for $25k + ttl + like 7% interest.
Click to expand...
factor in residual value and your cost of ownership is WAY higher...
Click to expand...

what are you talking about ?
I'm not leasing the vehicle. I purchased it.
I am gonna keep the vehicle for the term of the Financing, even keep it longer than that.

Why would I pay close to 30k for a used car when I can get a new car with better interest rates, better equipment package and overall a better car.
 
Originally posted by: tnitsuj
Originally posted by: isekii
I chose 5 year financing at 3.5% for the IS300, It might even be 3.45%

It was an alternative for me instead of purchasing a used 2002 Nissan Maxima SE fully loaded for $25k + ttl + like 7% interest.
Click to expand...

So how much is that car going to end up costing you?
Click to expand...

About 35k with interest factored in

I just did the calculations, total is 34,200 give or take.

 
Originally posted by: BigSmooth
Sadly, most people have a poor grasp of economics and personal finance.

The ONLY way I would get a long-ass loan like that would be if I was getting 0% and I was certain that I would keep the car for a very long time. Even then, I'd hesitate because you'd build equity so slowly that Gap insurance would be a necessity.
Click to expand...

I was playing around with a financial calculator, and was surprised that $18,000 @ 0% for 3 years = $500 per month car payments.

Not bad.
 
I was going to pay cash when I bought (NOT leased) my current car, but then they offered 0% for 48 months. Free money is hard to turn down. 🙂

IMO, anyone who finances more than 60 months is a fool. End of story. If you can't afford the car with a term that long, then you shouldn't buy it.
 
Originally posted by: RossMAN

I was playing around with a financial calculator, and was surprised that $18,000 @ 0% for 3 years = $500 per month car payments.

Not bad.
Click to expand...

Is this a joke? I can't tell. I was playing around with a regular old calculator and was not suprised to find that 500x36=18000.

 
eh, there's no way I'm ever getting more than a 3 year loan. Hell the first car i buy im paying cash up front. I hate credit!
 
A car is NOT a investment. If you can't pay it off in 3 years, MAYBE 4 max, then you need to find a cheaper car.

Unless you are getting teh 0.0% GM is offering that is....... And even then 4 would still be my max
 
Originally posted by: CChaos
Originally posted by: RossMAN

I was playing around with a financial calculator, and was surprised that $18,000 @ 0% for 3 years = $500 per month car payments.

Not bad.
Click to expand...

Is this a joke? I can't tell. I was playing around with a regular old calculator and was not suprised to find that 500x36=18000.
Click to expand...

Yes, sorry I should have included a 😉
 
Originally posted by: Mwilding
I bought my last car for cash. Now I can save money every month for my next car and keep all the interest. I was so happy to get away from having to finance.
Click to expand...

That's what I wanna do. 😀
 
My friend's parents bought him a G35... they're on 6 years with something like 600/month and thats with an 11k downpayment. Needless to say... they're the bunch that would buy anything the salesman throws at them... and i don't think they even haggled at the price. I don't know how much the car costs after financing but i think it was around 50k or so. That's pretty bad considering they got it for $37k.
 
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