Finance managers are remarkably single minded about that!
More than half of all new car loans in Canada financed for 84 months
- Thread starter Serpent
- Start date
Finance managers are remarkably single minded about that!
I'm sorry, but no. According to Federal statistics, the average age of a vehicle on the road in 1995 was 8.4 years. Yes, they are lasting longer now, and it's increased to 11 years, but it's not like they were falling apart after 80,000 miles. Heck, go all the way back to 1970 and it was still 5.6 years.
The ONLY reason we see 84 month loans is because consumers are dumb enough to sign up for them and lenders are smart enough to let them. It may be an unpopular opinion, but if you're paying anything over 2-3 years, you really shouldn't be buying it.
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BAD NEWS:l new car cost is insane
GOOD NEWS: they do seem to last longer and built better
That being said, I wouldn't want to finance longer than the term of the warranty. I'll seriously be looking at a VW for my next DD
GOOD NEWS: they do seem to last longer and built better
That being said, I wouldn't want to finance longer than the term of the warranty. I'll seriously be looking at a VW for my next DD
Most people who buy cars are not financially literate. A lot of people are "payment shoppers" and never really pay attention to the loan length, interest, and the cash price.
But hey, you know what keeps the economy growing? More debt.
But hey, you know what keeps the economy growing? More debt.
Makes perfect sense because the increase in car prices over the last 15 years has far outpaced inflation. With a consumerist society the notes will only get longer and longer so people can have the new car they think they need.
I learned my lesson purchasing my Hellcat new in 2016. $20K of depreciation in 2 years. 
I won't make that mistake again.
My next vehicle will be a 1-2 year old, low mileage, one owner vehicle that still has the bulk of the factory warranty remaining.
I will let someone else take the initial depreciation kick to the balls.
I won't make that mistake again.
My next vehicle will be a 1-2 year old, low mileage, one owner vehicle that still has the bulk of the factory warranty remaining.
I will let someone else take the initial depreciation kick to the balls.
I have a hard time stomaching a 72 month term let alone thinking an 84 month. That’s a good way to get flipping in a loan fast
It's insane how much new cars cost, and I don't know how people can [responsibly] afford them.
I've been driving the same 2004 Subaru Legacy with 190k miles as my DD since 2011 and have no real desire to replace it yet. Sure, it'd be nice to drive something newer with all the latest gadgets, but my car is still in good condition because I maintain it, it's comfortable enough for me, when it gets dinged I don't flip out, and it costs me basically nothing to own and drive.
My only debt is a mortgage, I have a solid income, and could comfortably afford a $600/month car note but I cannot bring myself to make that kind of financial commitment; especially with all the additional soft costs that come with a new car. I could never take on a loan longer than 60 months; 5 years of paying interest on a depreciating asset scares me enough. I cannot fathom how a large demographic will do the same for 7 years!
I've been driving the same 2004 Subaru Legacy with 190k miles as my DD since 2011 and have no real desire to replace it yet. Sure, it'd be nice to drive something newer with all the latest gadgets, but my car is still in good condition because I maintain it, it's comfortable enough for me, when it gets dinged I don't flip out, and it costs me basically nothing to own and drive.
My only debt is a mortgage, I have a solid income, and could comfortably afford a $600/month car note but I cannot bring myself to make that kind of financial commitment; especially with all the additional soft costs that come with a new car. I could never take on a loan longer than 60 months; 5 years of paying interest on a depreciating asset scares me enough. I cannot fathom how a large demographic will do the same for 7 years!
Also have to keep in mind, a large part of the increase in price is the mandatory safety items, systems and features.
Multiple air bags, stability control, ABS, Emergency stop, RADAR cruise, pedestrian detection, blind spot monitors, lane keep assist, camera safety systems, not to mention the advancement in overall structural strength and crash survivability and on and on.
Thats not even getting into emissions R and D either.
Multiple air bags, stability control, ABS, Emergency stop, RADAR cruise, pedestrian detection, blind spot monitors, lane keep assist, camera safety systems, not to mention the advancement in overall structural strength and crash survivability and on and on.
Thats not even getting into emissions R and D either.
My plan is to finance a new truck soon. I’d like to finance for under 72mo and trying to put at least 40% down. I’m grateful that ive never been upside down. I work in the banking industry and see the horror, daily.
Theyve jumped a ton too. I got 1.99 on my super duty in 2017 but my mustang was 2.99.
My wife and I really want a '19 Cayenne Turbo. Optioned the way I'd want it, we'd be looking at a $2300+/- payment for 60 months! (Zero money down.) That's a mortgage on a $400K house! Lease terms on it are absolutely atrocious. It's "better" to buy it outright. If we could get 84 months at 0% or 1%, I'd probably do it. It would knock a few hundred off the payment.
I don't know if I'd want it for that long. Porsche interiors don't age well aesthetically. From the research I've done, though, people who have bought them in the past loved them and bought them again. So I guess they must be fairly reliable. Which is surprising, considering how horrendously unreliable its cousin the VW Touareg was initially.
And of all that I'll take the air bags and ABS. Keep the rest of the shit as I don't need it. lol
Ford and their trailer assist for backing up? I'm paying for R&D because some are too stupid to learn how to back up a trailer.
Backup camera?
How about learn to use mirrors?
Also remember that the cost of making all that stuff should have gone down by now.
Just like the TV that was 4K 2 years ago is now $899
That's ****ing nutty.
The auto industry needs a correction. These prices are getting out of hand, and availability of such long terms is only going to drive up the purchase price, not down. Then again, everyone keeps wanting newer and newer shit, fancier materials, etc and these cars are getting bought. I guess im just stuck in the 00's/early 10's as far as pricing and tangible vehicular worth.
Agreed.
Americas mantra used to be "Better, Faster, Cheaper" meaning all three; but somewhere along the line we became complacent with saying "Pick two".
The auto industry needs a correction. These prices are getting out of hand, and availability of such long terms is only going to drive up the purchase price, not down. Then again, everyone keeps wanting newer and newer shit, fancier materials, etc and these cars are getting bought. I guess im just stuck in the 00's/early 10's as far as pricing and tangible vehicular worth.
Agreed.
Americas mantra used to be "Better, Faster, Cheaper" meaning all three; but somewhere along the line we became complacent with saying "Pick two".
pretty hard to do when the Feds say you are going to add backup cameras to all 2015+ vehicles period no matter what price or segment they belong in. There is some things you do not just ignore and tell the Feds to F off and that is one and a few other things over the last 10 years.
Love all the financial experts on SVTP lecturing people about how they spend their money, and how dumb everyone else is. I'm sure everyone here always buys used, with cash, right?
Sure, an 84 month loan at an interest rate anything over 0% is probably dumb. But, you're not in their shoes.
Sure, an 84 month loan at an interest rate anything over 0% is probably dumb. But, you're not in their shoes.
If I can sway just 1 kid to not get in over his head because the platinum F250 looks cool then I've done my job.
It has become part of my job at work as a supervisor of new operators. lol
First thing they want is that new truck.
Then I show them my 2005 that looks almost pristine and my 08 Honda Civic work car.
It has become part of my job at work as a supervisor of new operators. lol
First thing they want is that new truck.
Then I show them my 2005 that looks almost pristine and my 08 Honda Civic work car.
And they mark it up how much for that?
You can buy backup cameras for under $100 now. lol
My '16 KR stickered for $60K, got it for $49K and 0% for 72. This was also after the 17's had hit the lot as well.
Buddies in oil say they tell the young kids the same shit....first thing they do is go out and finance a $80,000 truck at $1600/mo
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