6 year loans "average" now

[OX1]

People actually saddle themselves for 6 years @ close to $600 a month?

https://www.caranddriver.com/news/a32035114/auto-loans-march-average-70-months/

I guess they do.............

Sponsored

 

[BroncoBoy22]

People actually saddle themselves for 6 years @ close to $600 a month?

https://www.caranddriver.com/news/a32035114/auto-loans-march-average-70-months/

I guess they do.............

If the interest rate is 0, like many manufacturers are offering now, why not? (Assuming it fits in one’s budget)

vehicles are really expensive nowadays, if you have the itch to have it new from the factory then you’re gonna pay the piper

 

[HoosierDaddy]

Man, maybe zero to VERY low interest for 6 to 7 years.....but regardless, I limit myself to 5 years, maybe 4 depending on what I'm looking at.
We usually keep vehicles a long time, probably too long.
A work vehicle for me .... no way I'm going 6/7 years.

I suppose, since I've been eyeballing Super Duties for awhile, when I buy one, it will be a keeper, a legacy truck so to speak, so if they have zero for 6/7 years, as BB22 said , why not?

 

[Nickp]

I’d rather have a lower payment and pay more on my payment. That way if something happens where I’m not able to pay I can miss a few payments with no problems

 

[Tor148]

I do the same thing. I work construction and it's much easier to give extra or double payments than try to renegotiate if construction gets slow. Case in point what we are going through right now.

 

[texheim]

The Bronco will be the first vehicle I'll spend over $11K on.

 

[DrewBronc21]

I never even consider the monthly payment On a loan. It’s only a calculation of purchase price and interest. I would do a 0% loan @ 84 months all day long. Sure I’ll take your money for free for 7 years! The extra money I’m not spending on payments and interest is invested and making ME money and if I ever want to trade in the car, I use some of that.

 

[ccsami4x4]

I never even consider the monthly payment On a loan. It’s only a calculation of purchase price and interest. I would do a 0% loan @ 84 months all day long. Sure I’ll take your money for free for 7 years! The extra money I’m not spending on payments and interest is invested and making ME money and if I ever want to trade in the car, I use some of that.

If you do that, like ChrispyKC said, you'll find yourself (likely significantly) upside down on your vehicle. You've got to either put enough money down, or have a short enough loan term, or you're going to have a real tough time building any equity in the vehicle. You might not plan to sell it, but things happen, wants/needs change, and then you'll have to pony up just to get back out of the vehicle.

 

[DrewBronc21]

If you do that, like ChrispyKC said, you'll find yourself (likely significantly) upside down on your vehicle. You've got to either put enough money down, or have a short enough loan term, or you're going to have a real tough time building any equity in the vehicle. You might not plan to sell it, but things happen, wants/needs change, and then you'll have to pony up just to get back out of the vehicle.

the actual vehicle may be upside down but I’m ahead. I took the money I would have put down and kept it and made interest on it. I didn't pay anyone interest for 7 years and made compounded interest on what I didn’t pay n the auto loan and if I want to trade my “upside down” vehicle at any time, I just grab some of that wad of cash I made by taking out a 0% loan for 84 months.

 

[ccsami4x4]

the actual vehicle may be upside down but I’m ahead. I took the money I would have put down and kept it and made interest on it. I didn't pay anyone interest for 7 years and made compounded interest on what I didn’t pay n the auto loan and if I want to trade my “upside down” vehicle at any time, I just grab some of that wad of cash I made by taking out a 0% loan for 84 months.

That might work if you're several years in, but the shorter the time you have owned the vehicle, the less time your invested money has had to work. And let's be honest, the difference between a zero percent interest loan and the going rate of <3% right now isn't exactly going to give you a lot of investment $$ to turn into your "wad of cash" ... at least not in comparison to how quickly a new vehicle can, and often does, depreciate.

I get your point, and kudos to you if you're one of the few who would wisely take that difference and add it to your portfolio.

 

[HoosierDaddy]

I do the same thing. I work construction and it's much easier to give extra or double payments than try to renegotiate if construction gets slow. Case in point what we are going through right now.

Now that you mention it, wife and I had thst exact discussion at the finance table for the last two cars. We went 5 years instead of 4 for those exact reasons.
Plus, there's the feeling of "WIN" when you pay it off "early". LOL
Takes discipline though.

 

[OX1]

I spend a lot of money per year on car mods and tools, but I can't see me spending that on one new vehicle.
The bronco I'd probably want, I'm guessing, even an SE trim or higher with 2.7, will probably be $50 or more.
That's 3 (or more) years of car mods for all the other stuff I own. The more I look at it, the better
chance I'm buying used.

But, it's good to see that many have that ability and desire to spend that per month, almost indefinitely.
Aside from this hiccup, country must be doing pretty good.

Sponsored