What is the longest term you would consider financing a car for?

[alkemyst]

yea the meant to rent can get da lexus too! werd.

 

[GagHalfrunt]

Originally posted by: TheToOTaLL

Originally posted by: GagHalfrunt

Originally posted by: TheToOTaLL
It's almost as smart as someone financing a $500+ PC. Even worse is the "rent-a-center" type places.

If you don't have the money to afford shorter terms on a purchase, or just buy the darn thing outright, then save up until you can! It's not best to finance an impulse buy when you'll pay for 1.5 of the item in the long run.

You're a complete dimwit.

Do the math on this one, or better yet hire somebody to do it for you since you seem unable to grasp the concept:

Buy a $20,000 car. You have $20,000 available cash. You have the option to finance for 6 years at 1.9% or to pay cash. If you pay cash you have the car and zero cash. Your net over the next 6 years is zero. No money gained on your investment, none spent on interest. But what if you choose to finance? You keep the $20,000 you have, borrow $20k at 1.9% and invest your 20k at 2.9%. Do you make money or lose money?

Why do you think banks offer interest on money you deposit? It's because they can make more on it than they're paying you. Newsflash here, the door swings both ways. YOU CAN MAKE MORE BY INVESTING THAN YOU PAY FOR LOW INTEREST LOANS LIKE CAR FINANCING!!! Christ, you advocate saving up till you can afford something? You quite clearly mark yourself as never having purchased anything more expensive than a pack of gum.

I think you're the "dimwit" that needs to read.

The OP said:

"Local dealer around here is offering 96 month financing on cars @ 8.5%. Running the math on that I get for a 20,000 car:

96 months @ $287.85 = $27,633.60 total payments for a vehicle that will probably lose 90% of its value in 8 years."

I don't see where you pulled some 1.9% or 2.9%.

And if you would have read my post, I said:

"If you don't have the money to afford shorter terms on a purchase, or just buy the darn thing outright, then save up until you can!"

The whole point of the thread was geared towards people that, when not in the right financial situation, give in to high interest rates and longer terms. These are the same people that could save up, say 20% for down payment, could greatly help themselves with less payments, possibly even less interest, and an overall lower investment.

And you think you're such a genious with your "You quite clearly mark yourself as never having purchased anything more expensive than a pack of gum" statement? Try a $100,000+ house & 2 cars for starters.

Nope, you need to learn to read Skippy. Once you learn that vital skill you're so sorely missing you'd have caught that this sub-discussion has spun off from some other moron like you claiming that you never finance cars and only buy once you have cash in hand. You then parroted the same inane concept. Go ahead, we'll wait while you take some reading lessons and go back to read the thread. Perhaps in that time you'll learn not to comment until you get a clue what you're talking about.

 

[farmercal]

No more than 48 months

 

[Squisher]

Right now I'm in a 60 month at 0%.

I prefer 36 month, but with 0% there really is no downside to running out the length.