Americans Owe Over $1 Trillion on Their Cars

[Tom Foolery]

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.

You have to ask yourself this question. If you don't give them a 6-7 year loan, how will the dealership sell the car?

The whole idea is to keep the economy going. It's really scary when you start thinking about what happens when we reach the breaking point?

 

[David_TheMan]

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

Nothing wrong with any care if you can afford it.

 

[winb83]

You have to ask yourself this question. If you don't give them a 6-7 year loan, how will the dealership sell the car?

The whole idea is to keep the economy going. It's really scary when you start thinking about what happens when we reach the breaking point?

My credit union wouldn't approve a loan term that long.

 

[Tom Foolery]

My credit union wouldn't approve a loan term that long.

Who's your credit union? I did a quick search and every credit union I've clicked on so far has up 84 month auto-loans. I think the dealers offer their own financing as well.

 

[N.J.stan]

Nothing wrong with any care if you can afford it.

Assuming you discount reliability and dont care about ongoing costs

 

[David_TheMan]

Assuming you discount reliability and dont care about ongoing costs

Nope not even discounting reliablity or costs, nothing is wrong with getting what you want, assuming you can afford it.

 

[Truefan31]

Who's your credit union? I did a quick search and every credit union I've clicked on so far has up 84 month auto-loans. I think the dealers offer their own financing as well.

84 months smh.

 

[MillionMills]

Just ridiculous.

My car is paid off and I dont want a car note anytime soon although I may have to do a small one because my car might not make it and I dont have a lot of cash saved yet

 

[N.J.stan]

Nope not even discounting reliablity or costs, nothing is wrong with getting what you want, assuming you can afford it.

Fair enough

 

[Astroslik]

I WILL never finance a car, only lease/buy outright

 

[Geek Nasty]

I took out a 5 year loan and I thought that was crazy and that was at 2.8%. Paid it off in 4 though. People want to live that lie I guess.

 

[Geek Nasty]

You have to ask yourself this question. If you don't give them a 6-7 year loan, how will the dealership sell the car?

The whole idea is to keep the economy going. It's really scary when you start thinking about what happens when we reach the breaking point?

We're already there. Cracks are showing. Wall Street doesn't have any more tricks to let people rack up debt and forget how broke they really are.

 

[street heat]

paid my car off this month after almost 5 years. feels good.

now i just hope i dont start having problems with it. i havent had any major problems so hopefully i can ride it at least a couple more years

 

[Truefan31]

We're already there. Cracks are showing. Wall Street doesn't have any more tricks to let people rack up debt and forget how broke they really are.

yup. People need to realize this. Stupid long car loans allow cars to be sold and it allows car prices to go up. Take away these stupid loans and car prices drop like crazy.

Same thing with student loans. They give anyone a student loan to keep people payin for college, which in turn makes the costs of college higher. Take away dumb student loans, all a sudden college will become much cheaper.

 

[tahoj4]

The average new car price in the US is over 33k, I could not find adjusted numbers for 2017 for a source. New-Car Transaction Prices Up 2 Percent In March 2016, Along With Increases In Incentive Spend, According To Kelley Blue Book Most Americans cannot afford a new or even a lightly used car with the median average income in the US.

Also considering the fact that Americans have smaller amounts in their savings you will have to have longer loan terms to sell cars. 5K down a 40K car is stll close to $700 a month on a 5 year loan depending on taxes and fees.

It amazes me that people still buy cars with the escalating costs of a new car. Once you add in insurance and gas you could be in a new car for $800 a month. 72 - 84 month car loans will become the norm with the average ownership period for a car being 11 years. Homes and cars keep going up but wages do not. Tough times ahead.