Monthly car payments hit record high of $712 in May

[Prodyson]

A basic 5 year old Honda doesn't fit everyone's needs

There are other used car options for less than $700 that would fit most people’s needs. Maybe not their wants… but their needs.

 

[Shadow King]

There are other used car options for less than $700 that would fit most people’s needs. Maybe not their wants… but their needs.

I understand that because I'm in this bracket while having the purchasing power to do more than 700.

 

[Cowboyz89]

people really have car loans for seven years? Is this new car or a used?

They do exist, but I dont know how common they are across the country.
Ive owned 3 cars in my life from different dealerships.
Only 1 place gave the option of 7 years.

 

[IIVI]

If you got a fully paid-off car there is no reason to reason to buy a new one to "save money on gas".

All you'd be doing is paying an extra $500/month to save $100 a month?

Good thread on why it's a bad idea:

Then EV isn’t going to work for you. EV is terrible at bad weather, heating (since you mention desert, it can be cold in winter depends on your tolerance) and cooling will cost some 20%-30% of the battery.

Buying a 300 mile range brand new EV will cost you maybe 45k(correction: 55k). It depreciates 6k a year, that’s 500 a month. While your corolla depreciates maybe half (correction: less than $200 a month) of that since it’s already 5yo . The depreciation cost difference offsets majority of your gas saving. Then there is higher insurance and registration cost (EV registration is very expensive in California!) regarding maintenance, come on Corolla doesn’t need anything other than oil change. I didn’t even add the cost of adding a home 220v charger. I’d say at best, you just break even. Then what’s the point tho? Paying the same amount for less convenience?

That’s something you should think about.

Am I the only one around here who remembers people freaking out and selling their trucks and SUVs at a huge loss and spending a ton on new vehicles in 2008?

I remember when almost every car commercial started mentioning gas mileage

Don't bail these car companies out at your expense.

Don't get played.

 

[Suzie]

Not true.
A couple months backs I dropped 8 stacks down on a 2018 mazda 6 grand touring reserve and that's exactly what my note is.

With 8k down is the key word here.

 

[Who Not How]

I'm glad folks are buying brand new cars. It'll be a lot cheaper when I'm ready to buy it used.

Hell yeah. There's gonna be a lot of nice used vehicles this decade.

 

[ORDER_66]

$712 per month of car payments???;!

 

[Shadow King]

people really have car loans for seven years? Is this new car or a used?

New. If you're doing 7 years on a used car plan you absolutely can't afford the car.

 

[MoveForward]

I got 17K for a car that I paid 11k for back in 2021. I took that and put it on my new car and financed it for 72 months. The interest rate is 2.78% but the interest rate on the 60 months is 2.11%… The interest rate for 84 months was only 3.4%… I pay an extra $100 towards the principal but if I didn’t, there is no way I would end up upside down.

 

[OfTheCross]

I got 17K for a car that I paid 11k for back in 2021. I took that and put it on my new car and financed it for 72 months. The interest rate is 2.78% but the interest rate on the 60 months is 2.11%… The interest rate for 84 months was only 3.4%… I pay an extra $100 towards the principal but if I didn’t, there is no way I would end up upside down.

What did you sell and what did you buy?

 

[Son Goku]

That's why most people end up upside down.

If u can't afford it in 3 years, it ain't for you

False, actually. Motherfukkers are upside down from the jump because they finance more car than they can comfortably afford and either: a) put almost nothing down/have no trade-in, or b) roll an unpaid trade into the price of the new vehicle. Some folks do both.

 

[Shadow King]

I did

Good for you. Exception not the rule.

 

[1thouwow]

Good for you. Exception not the rule.

What’s the rule then buddy?

 

[Pseudonym]

fukk that

 

[Shadow King]

What’s the rule then buddy?

I had an answer but since smartassery is the game:

Not 3 years.