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new car loans

Posted: Tue Dec 03, 2019 11:32 pm
by reno
if your thinking of buying a new car. is it worth you doing a 66 month loan plus the 20 percent down for a KIA. that what i'm hearing on the radio these day here in florida . i'm not in the market but it mind boggling to me. when we first bought a new car in back around 1983 i think . it was a pontiac J2000 -and we did a 36 month loan to get it . then later some years back they went to 48 month new car loans . when we bought a 2008 saturn vue . then are latest a 2019 gmc terrain that's a lease .we took for 3 years they were offering 60 month loans if bought at 0 % if you were approved .or 0 percent interest & $1000 down and first month down to lease for 3 years .pay off was $100 more then buying it . we were not sure we want to keep it so we took the lease deal. but it making me wonder whats next 72 month (6 year) . new car payments to be the normal or maybe 7 year . hell we never did more then a 15 year 10 % down loan on any home we owned .to top it off the homes selling prices went up -not down .but after 6 or 7 years on a car might get you couple grand 8-10 grand at best if your lucky .

Re: new car loans

Posted: Wed Dec 04, 2019 9:12 pm
by Losbot
72 mos is more common than you think. It also depends on the vehicle.
I'm not sure what I'm going to do for my next car but based on price, I might end up doing a 60 month. Mostly because I plan to keep the car (I have leased cars for the last 20 yrs).
I'm probably going to lease something super cheap as a daily driver but I also plan to purchase the new Corvette. Right now they're about the same as last year but that's gonna change. A few articles have reported that GM's losing money on every Vette they sell for under $80k. Right now the base is like 58k and about 67 for the better trim. I can see that changing.

I'm saving up for the next 18 mos that I have left on my current vehicle and then I'll see what I do when the time comes to order my car. But yeah, I've seen 60 months as an option for over 20yrs and recently I've seen 72 mos as an option but on more expensive cars, to help trim down the monthly nut.

Re: new car loans

Posted: Wed Dec 04, 2019 10:31 pm
by psypher
When I bought my wife's new car, I put 20K down and financed 30K for 72 months. I specifically did it this way to hit a monthly payment target. I manage a strict monthly fixed expenses and I don't like to mess with it much. I just paid off my car before hers started, so no real change to our monthly expenses. Also the interest was 2.5% and I doubt I'll actually have the loan that long, we typically pay the cars off earlier and drive them a long time. Our previous cars were 10 (mine) and 15 (hers) years old.

Re: new car loans

Posted: Thu Dec 05, 2019 1:13 am
by Executioner
Yeah I just bought a used 2016 Subaru Outback that had 23k miles, and went with the 72 months. I put down $3000 and traded in our old 2005 Honda Accord that had 120k miles. The other 3000 came from selling my 2001 Ford F150 crew cab with 150k miles. Since I'm getting ready to retire sometime next year, I wanted a reliable car to carry me over for the next 10-15 years.

Re: new car loans

Posted: Thu Dec 05, 2019 3:11 pm
by Err
A long term loan is fine as long as you're planning on keeping the car for the duration of the loan and preferably longer. I do a 60 month for that purpose and also keep Gap Insurance just in case something happens. Cars are becoming too expensive. Even a good used car can cost you these days. The 60 and 72 month loans are to entice people that have no business buying a 50K SUV to buy one. I think where some run into trouble is where they buy a car with a 60 month loan and then decide to trade it in before they pay it off. I really wish that the concept of depreciation was taught to car buyers.

Re: new car loans

Posted: Thu Dec 05, 2019 6:41 pm
by reno
I really wish that the concept of depreciation was taught to car buyers.
this is so true ! use to be 10 to 20 % once it leaves the lot today it could be a lot more !

Re: new car loans

Posted: Thu Dec 05, 2019 9:33 pm
by Losbot
Which is why many now do the Certified Pre-Owned to save money, get a reasonably new car and still get a full warranty.