Americans Owe A Record $1.1 Trillion In Car Loans

StandOnIt

StandOnIt

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Aren't there more drivers on American highways than ever before? Not many people pay cash for an automobile.
Many manufacturers offer 0-1.9% financing these days.
 
I believe this is the reason my wife has decided to fix her Honda,it's almost paid for.We have a couple friends who flip cars for a living.After seeing what these cars look like when they buy them and seeing them after they "fix" them,I wouldn't touch a used car without knowing the previous owner.Now they have all these flood damaged vehicles from the storms,buyers beware.
 
'Only' $13k of it but ****....
 
I read awhile back that car loans are like the house loans were back in 2008 before the crash. Way to easy to get, people are defaulting too much on them and there is soon to be a crash just like in 2008 with the mortgage industry.
 
Mopardh9 said:
I read awhile back that car loans are like the house loans were back in 2008 before the crash. Way to easy to get, people are defaulting too much on them and there is soon to be a crash just like in 2008 with the mortgage industry.
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That is what the article I posted said. Sub prime loans for cars made sales look good, but that has changed and cars sales are down. Some loans are for 96 months? Amazing.
 
StandOnIt said:
That is what the article I posted said. Sub prime loans for cars made sales look good, but that has changed and cars sales are down. Some loans are for 96 months? Amazing.
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I can't remember what mine was for, but I was counting down the months till it was paid off. Imagine having to count down from 96!
 
Brentford said:
I can't remember what mine was for, but I was counting down the months till it was paid off. Imagine having to count down from 96!
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unless you put down a large down payment (wouldn't need 96 months in the first place) that vehicle would never be worth what was owed on it until the last year. 7 years of being upside down. Playing the odds, an almost sure fire way to screw yourself.
 
The longest I ever had financing for a car was my 2001 Lincoln --- 5 years, but 0% interest. Bought it right after 9/11 and dealers wanted
to move cars. Couldn't resist.
 
Nope, I got all my auto and truck titles in a safe place. :D

ONE POINT ONE TRILLION DOLLARS! :eek: That is One Thousand Billion, on the books, geeeezzzzzz. Talk about a big bubble ready to pop.
 
BobbyFord said:
Aren't there more drivers on American highways than ever before? Not many people pay cash for an automobile.
Many manufacturers offer 0-1.9% financing these days.
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Yeah, it seems natural that as car prices and population increase, the total dollar amount owed on car loans would increase. Not really newsworthy.
 
I purchased my last new vehicle in 2005 and paid cash. When my wife's Bonneville was getting long in the tooth in 2012 she decided to go with a lease. She did it again in 2016.
It may not work for everyone but it works for us financially and believe me I've worked the numbers 6 ways to Sunday.
Cash outlay over 3 years is a lot less with a lease than purchase. the lease payment is half the cost if not more than a loan payment.
No maintenance costs. It breaks, they fix it and we get a free rental.
No personal property tax, here on a new car expect a grand, or more, a year.
 
Bobw said:
I purchased my last new vehicle in 2005 and paid cash. When my wife's Bonneville was getting long in the tooth in 2012 she decided to go with a lease. She did it again in 2016.
It may not work for everyone but it works for us financially and believe me I've worked the numbers 6 ways to Sunday.
Cash outlay over 3 years is a lot less with a lease than purchase. the lease payment is half the cost if not more than a loan payment.
No maintenance costs. It breaks, they fix it and we get a free rental.
No personal property tax, here on a new car expect a grand, or more, a year.
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Leases are fine if you drive less than 10000 miles per year, Forget it if you drive 15k-20k
 
Bobw said:
I purchased my last new vehicle in 2005 and paid cash. When my wife's Bonneville was getting long in the tooth in 2012 she decided to go with a lease. She did it again in 2016.
It may not work for everyone but it works for us financially and believe me I've worked the numbers 6 ways to Sunday.
Cash outlay over 3 years is a lot less with a lease than purchase. the lease payment is half the cost if not more than a loan payment.
No maintenance costs. It breaks, they fix it and we get a free rental.
No personal property tax, here on a new car expect a grand, or more, a year.
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If it were not for milage I would think about it.
 
Like a few others have said we intentionally bought my truck on credit. 1.99% interest with the credit union and no dealer related fees. It is the only big credit item.
The wife does accounting work and plays the credit cards. If we buy an appliance at 0% it only gets paid when due.

I dont keep up with the crap, but I do ask which card to use for gas, and she will tell me the one with the best rewards.
 
I'll be paying on my truck for awhile, but the wife's car will be paid for in February.

I've never gone over 5 years or nothing down on a car loan, I don't wanna be upside down on it the whole time I have it.
 
Greg said:
Like a few others have said we intentionally bought my truck on credit. 1.99% interest with the credit union and no dealer related fees. It is the only big credit item.
The wife does accounting work and plays the credit cards. If we buy an appliance at 0% it only gets paid when due.

I dont keep up with the crap, but I do ask which card to use for gas, and she will tell me the one with the best rewards.
Click to expand...
When my brother was the sales manager at the Toyota dealership I was surprised people taking a $500 rebate over 0% interest and financing instead through a bank.They had very few customers walk away because the dealer couldn't find financing.
 
Professur said:
My last 4 car purchases have all been under $1500 each. Knowing your way around under the hood doesn't cost a lot ... but it saves you tons.
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Very true but each year the cars get more and more complex. It's getting harder to diagnose and repair. Sometimes you need specialized equipment and training.
 
Yep .. that's why I'm sticking to older, more serviceable vehicles. This summer I spent $1500 on a '98 GMC C1500 w/Vortec 5.0l. Very common, very simple to work on and parts are dirt cheap. The engine can implode tomorrow and I can swap it out for about $500 in an hour. There's nearly enough room to stand on either side of the engine too. My only bugbear on it is it has 4 wheel ABS. I'd ditch it if it wasn't illegal.
 
Wages haven't increased in decades and the cost of everything has doubled, tripled and quadrupled.

But we millennials are just lazy.
 
I've owned 16 cars, and paid cash for them all. The most expensive one was $6500, but most were $3k or less. One day I'll finance something newer and nicer when I want to, but I've never really needed to. Hell I probably couldn't have really afforded to anyway, LOL
 
darlingtonfan said:
When my brother was the sales manager at the Toyota dealership I was surprised people taking a $500 rebate over 0% interest and financing instead through a bank.They had very few customers walk away because the dealer couldn't find financing.
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Those would be the same people who take the so-called 'Instant Refund' from their tax preparers.

We'll be buying out first completely new vehicle since '93 when my National Guard retirement kicks in next summer. Like every other car we've had, we'll drive it until it dies.
 
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