Americans Owe Over $1 Trillion on Their Cars

[winb83]

Americans Owe Over $1 Trillion on Their Cars -- The Motley Fool

I think this is the most alarming thing.

About 32% of borrowers chose a 73- to 84-month loan last quarter, up from 29% in Q4 2015.

Who the hell takes out a 6-7 year car loan? I would have never thought over 1/3 of people with car loans take out one that long.

 

[David_TheMan]

Glad i aint apart of that number.

 

[Panther]

Im only buying cars in cash from here on out

The feeling of not having a note is

 

[Truefan31]

Americans Owe Over $1 Trillion on Their Cars -- The Motley Fool

I think this is the most alarming thing.

Who the hell takes out a 6-7 year car loan? I would have never thought over 1/3 of people with car loans take out one that long.

Yup. Problem too is because of the fukkery with car loans the prices of cars goes up too. Same with student loans and the costs of college.

 

[ORDER_66]

shyt happens...whether you want them to or not...

 

[winb83]

Yup. Problem too is because of the fukkery with car loans the prices of cars goes up too. Same with student loans and the costs of college.

Realistically a 7 year car loan doesn't get paid off. It becomes negative equity for the next loan when the owner gets bored with the car and wants something different or when repair cost push them to get another car because too much of their monthly income is going to payments so they can't afford major repairs.

 

[Truefan31]

Realistically a 7 year car loan doesn't get paid off. It becomes negative equity for the next loan when the owner gets bored with the car and wants something different or when repair cost push them to get another car because too much of their monthly income is going to payments so they can't afford major repairs.

it's these dumb long loans that allow people to be ok with paying stupid prices for cars.

 

[mannyrs13]

That might be as high as credit cards or student loans, no? People get those longer rates thinking they paying less a month but then are paying more in interest. I have friends who's interest rate on their car is ridiculous, and the car is worthless at this point. They might've gotten the 7 year loan and I think they'll end up paying for double the price of the car by the time their done. Unless they trade it in or something. Obviously not everyone can afford to buy a car straight cash but they gotta make sure their credit is straight and they have a decent amount to put down before signing the contract. Especially thru these shady car dealerships that take anyone regardless of credit and charge upwards of 20%+ on a depreciating asset. Also gotta take into consideration all of those that want to "ball" and get nice cars to show off. Buying luxury cars when there are cheaper alternatives that are just as reliable.

 

[The Guru]

If it takes you six years to pay for your car, you can't afford that car.

 

[Crude Abolitionist]

Sub Prime Auto loans are real. Just another bubble about to burst. Very soon.

Will be done paying my car off this year. May try to sell it to use the money to invest in my business.

 

[David_TheMan]

If it takes you six years to pay for your car, you can't afford that car.

I'd say 4 years.

 

[Ice_MF_Mike]

Good thing im not a car person. I keeps it cheap. got me a 2010 ford fusion i bought used. paid off and ill drive it into the ground.

 

[sayyestothis]

I'd say 4 years.

Financing a car at a great rate is actually a plus on cash flow. Rates are still low enough for ppl with good credit to finance and come out on top.

Now 72+ is rediculous...period but a 60 month at sub 2% is easy money

 

[David_TheMan]

Financing a car at a great rate is actually a plus on cash flow. Rates are still low enough for ppl with good credit to finance and come out on top.

Now 72+ is rediculous...period but a 60 month at sub 2% is easy money

Depends on your cash and purchasing strategy.

 

[N.J.stan]

have only and will only purchase reliable cars, in cash. never been in debt on a car and never plan to be. Yall can keep the bmws, im good with my mazda thatll last twice as long