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re: WSJ: The 7Yr Auto Loan: America’s Middle Class Can’t Afford Cars. BONUS: New Iberia HC???
Posted on 10/1/19 at 2:32 pm to Tarps99
Posted on 10/1/19 at 2:32 pm to Tarps99
quote:
Also used car financing is crap. If you pay 18 percent on a used car for 6 years you essentially paid for it twice.
It’s why it’s very important to get a manageable payment and if I cant do so for a new car then I walk away. I have a manageable amount so If for some reason I have trouble one month then it’s a drop in the bucket otherwise I’ve been at least doubling the payment. I hate pissing away money on interest and it’s extremely rewarding to see how much is paid against the principal.
I hate having a car note and drove my last for a long time and plan to do the same here.
0
Posted on 10/1/19 at 2:33 pm to TigerstuckinMS
quote:
bullshite. America's middle class can't afford cars they can't afford. There are cars they wouldn't have to finance like that, but they'd rather drive a nice car that'll put them in a bind and then bitch and moan that it's someone else's fault.
Yep. You can get a 2020 Toyota Corolla for under $20k. There plenty of used cars only a couple of years old you can get for under $15k. The problem is that people who can afford a $15k car are getting a $30k car and the people who can afford a $30k car are getting a $60k car.
Posted on 10/1/19 at 2:34 pm to Hou_Lawyer
Buy an old Honda or Toyota for $5K or less and keep it running. You can easily put 300K miles on those vehicles if you do routine maintenance on them.
Posted on 10/1/19 at 2:35 pm to The Spleen
So a 7 year loan isn't always a bad thing. If you are getting less than 3% interest rate then you would be stupid not to take it.
Usually can make more then that by investing that money. I realize most don't do this and need to follow the Dave Ramsey model but for those with great finances and good investing schools it's a smart play.
Usually can make more then that by investing that money. I realize most don't do this and need to follow the Dave Ramsey model but for those with great finances and good investing schools it's a smart play.
Posted on 10/1/19 at 2:36 pm to Adam Banks
quote:
I wasn’t comfortable paying anywhere near that and I got a far more affordable mildly used vehicle with as many features for significantly less than that.
If you got a "mildly used car" for way less than $500/mo, the new one didn't cost $500/mo either.
Mildly used cars don't depreciate enough to give you a significant savings, unless you're talking about German luxury full size sedans or similar.
Posted on 10/1/19 at 2:37 pm to The Spleen
quote:
I know I'll get torched for this, but a lot of this happens because schools aren't (and haven't been for a while now) teaching teenagers how to be adults. How to write a check. How to budget. How to calculate taxes. What department of the county courthouse does what. Basic finance. Interest rates. Insurance. How to not live paycheck to paycheck.
When did they? I'm late 40's and I didn't learn hardly any of that in school.
I was taught that stuff in my HS economics class. But that was an elective which TBH should be mandatory coursework.
If HS students are required to have Health credits to graduate then they should have to have an econ credit as well
Posted on 10/1/19 at 2:39 pm to Hou_Lawyer
At least ol gurl didn't take the car and stick him with the note.
Posted on 10/1/19 at 2:43 pm to lsu777
Yea (oh shite you said 7 years...frick that, but we did do 66 months), you shouldn’t be under at that rate. We get 1.89% on new from the credit union and I never feel like we couldn’t get money out of vehicles. Even on a $725/mo note you’re at least at $650 principal a month. Knocks down what you owe faster than the depreciation...if you picked decently.
Owe less than $30k on a 2018 Volvo that’s worth more than that. No reason not to buy new if they sell what you want. I drive a car with 150k on the clock only because I can’t replace it in the market.
Owe less than $30k on a 2018 Volvo that’s worth more than that. No reason not to buy new if they sell what you want. I drive a car with 150k on the clock only because I can’t replace it in the market.
This post was edited on 10/1/19 at 2:45 pm
Posted on 10/1/19 at 2:47 pm to lsu777
quote:
So a 7 year loan isn't always a bad thing. If you are getting less than 3% interest rate then you would be stupid not to take it.
This makes sense, in theory. The issue becomes people are buying vehicles they shouldn't be just because they found a way to make the monthly payments.
I got 0% for 60 on my F150, but I don't like carrying debt, so I will likely pay it off in the next year.
Posted on 10/1/19 at 2:48 pm to Tigeralum2008
People are so uneducated when it comes to buying cars. I see home health aide who make $9/hour rolling around with $600/mo car notes.
I do pretty well but I ain't spending more than $600/mo on a vehicle. It's insane.
I do pretty well but I ain't spending more than $600/mo on a vehicle. It's insane.
Posted on 10/1/19 at 2:48 pm to Hou_Lawyer
Well at least he rolled some of the unpaid debt he had into a 1.9% loan, which I'm sure was at an a lot higher rate.
I don't think this kid is middle class if he's 22 and still had loans from cars he bought as a teenager.
I don't think this kid is middle class if he's 22 and still had loans from cars he bought as a teenager.
Posted on 10/1/19 at 2:48 pm to Hou_Lawyer
quote:
Car loans that are increasingly stretched out are a pronounced sign that some American middle class buyers
are spending beyond their means to buy shite they shouldn’t. Shocking.
Posted on 10/1/19 at 2:49 pm to Motorboat
quote:
I do pretty well but I ain't spending more than $600/mo on a vehicle. It's insane.
Anything over around $250 gives me anxiety.
Posted on 10/1/19 at 2:54 pm to SuperflyLSU
quote:
Cost has definitely gotten out of hand. Going through a little sticker shock myself lately, looking for a mid size SUV and having trouble finding one for less than $32-35k out the door. That's even for stripped out base models,
Lol that's not true.
Just purchased a 3 row mazda suv for 36k out the door with the plenty of options (Full leather, heated seats, bose, parking sensors etc.)
If you didn't care for leather you could walk out of there with a base model for 31-33k all in.
Posted on 10/1/19 at 2:55 pm to Hou_Lawyer
Sure the middle class can afford cars. But their taste is higher than their wallet.
It seems people believe you should buy as much as they'll let you
It seems people believe you should buy as much as they'll let you
Posted on 10/1/19 at 2:58 pm to LNCHBOX
quote:
If you got a "mildly used car" for way less than $500/mo, the new one didn't cost $500/mo either.
Well I did
Wasnt one for one (different make and model) but the new was supposedly an "affordable" brand. I got a different make/model but equivalent amenities for signifcantly less. If you "cant find it" then you havent looked around long enough. Be patient. Walk away from the dealers. Dont be a sucker, at the end of the day its just a mode of transportation. Posted on 10/1/19 at 2:59 pm to Adam Banks
quote:
Well I did
Post your deal then.
quote:
Wasnt one for one (different make and model)
quote:
. I got a different make/model but equivalent amenities for signifcantly less. If you "cant find it" then you havent looked around long enough. Be patient. Walk away from the dealers. Dont be a sucker, at the end of the day its just a mode of transportation.
You're comparing apples to oranges to try to make a point.
Posted on 10/1/19 at 3:00 pm to Hou_Lawyer
In this thread:
A lot of people pretending to be smart that don't understand opportunity cost and the time value of money
As long as the interest rate is low and you're buying a reasonable priced car for your specific economic situation, finance for as long as they let you.
A lot of people pretending to be smart that don't understand opportunity cost and the time value of money
As long as the interest rate is low and you're buying a reasonable priced car for your specific economic situation, finance for as long as they let you.
Posted on 10/1/19 at 3:02 pm to Hou_Lawyer
Bought a car last year where there was no term length. They just said “$400 is the minimum monthly payment.”
Nice scam
I paid it off in 1 year since my accountant claimed there was some benefit to not buying outright.
Nice scam
I paid it off in 1 year since my accountant claimed there was some benefit to not buying outright.
Posted on 10/1/19 at 3:02 pm to elposter
quote:
Yep. You can get a 2020 Toyota Corolla for under $20k. There plenty of used cars only a couple of years old you can get for under $15k. The problem is that people who can afford a $15k car are getting a $30k car and the people who can afford a $30k car are getting a $60k car.
$27k seems high for an Accord. MSRP for a 2020 Accord Sport starts at $26,500. Even without negotiating you should be below 27k after incentives. Goes to show that this guy paid for more car than he needed. That said, 1.9% interest is a solid deal.
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