re: 9 year auto loans.

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There is no reason what so ever to pay that "brand new" price premium

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...unless you don’t want something that someone else has used. Also, please keep in mind that some people do have the financial means to purchase whatever they want, and that is plenty enough reason to buy new.

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The sales guy was telling the customer that he could get him financed for nine years at $600 a month. NINE YEARS!.. he signed the papers. 

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Now that's a baw. I hope he gets a diesel so he can at least blow black smoke at other baws when he passes them.

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ETA: 14k down. Financed 5k for two years. I'll have it paid off in a little over a year. The 228 a month payment is a just in case scenario. I went to my local branch bank. They could only go 8% with it being 5k and only 2 years. They stand to make a little over 400 bucks if I take the full 2 years.

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Couldn’t you have taken out a loan for the full amount for 60 months at like 4%, then just pay it off early?

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Maybe, but when someone is very financially stable, not every purchase has to be financially “smart”...

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Buying new vehicles is almost always financially retarded, regardless of stability.

There is a ton of stuff you can do with refinancing especially if you own a house.

You can get a super expensive vehicle off your home and pay a small amount per month.

Still doesn’t make it smart or financially awesome but you definitely can get way way more care than you need this way

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My damn brother is a car salesman. Makes 150k+ a year selling Kia's.

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I suddenly want to become a car salesman

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Makes 150k+ a year selling Kia's.

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I think for a large number heavily leveraged people if you suddenly upped their income to a level that could quickly pay off those debts, they would continue to be in debt at a proportionately similar degree as the original income.

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Buying new vehicles is almost always financially retarded, regardless of stability.

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Nah. But if you don't keep them for years, yes. Bought a 2002 Silverado (financed for 3 years at 0% when they offered it the first time after 9/11)and had it 14 years till a drunk ran me into a tree. Replaced with a 2016 F150 which I hope to have for 15 years or more and paid cash.

Edit to add: I would never take out more than a 3-4 year note at 0-0.9%.

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got a flier in the mail from a local RV sales lot. Campers were on 144 months financing at 7.5% and big RVs were 240months financing at 7.5% Who the frick signs up for these notes?

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My neighbor is the guy who has tons of expensive toys. I’m talking high end four wheelers, top of the line mountain bike (that I’ve never seen him ride), dirt bikes, a Harley he’s ridden twice in the 6 years we’ve been neighbors, a sweet toy carrier style RV and a big enclosed trailer thing.

My wife and I have often wondered how they pay for it all, and the nice house they have. They both work but neither has a super high paying job. We figured they were one of those couples where their parents bought the toys or the house for them.

Parents paying for their kids to have a house still baffles me.

Anyway, their son decided to get in to motocross racing so they go all out with a new race bike, a pit bike, a side by side, two sets of boots, leathers, pads, the works.

I was talking with him a few days ago and he said they were trying to sell the toy hauler RV. I said “well if it’s paid for you should make a little money on it eh?”

He said “we financed it for 10 years at 10%. So I’ll be happy to just get rid of it”

He then rattled off how they pretty much owe tons on all their stuff, including the house and new pool they just put in.

I damn near fell out. Later I told my wife “now I know how they have all that stuff, they’re in debt up to their tits!”

The only debt we have is a house note that will be paid off in about 9 years, and my truck that will be paid off in October.