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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 4:44 pm to bad93ex
Posted on 10/1/19 at 4:44 pm to bad93ex
quote:
a month. When they split last year and the monthly payment fell solely to him, it suddenly took up more than a quarter of his take-home pay
So before taxes he makes between 2500-3000 a month? 30-36k a year. He took out a car loan equal to his yearly pre tax income. And that’s not a middle class salary either.
Guy is an idiot. He should have found a used car that was similar for 12k
1
Posted on 10/1/19 at 4:53 pm to deltaland
you know this guy is first in line to get the new iPhone every year and lease it for 24 months @ $50 a month
Posted on 10/1/19 at 5:05 pm to helluvaday
quote:
Mr. Jones is an idiot
Particularly if he borrowed money to pay of loans that were non-binding (if he was under 18 for his two previous loans).
Posted on 10/1/19 at 5:21 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, and used prices for something with less than 75k miles on it is only 1 or 2k cheaper. Hell my 07 has more features than most of the vehicles we've looked at so far. Maybe I'm just cheap, but seems like the price outweighs the product nowadays.
I live in one of the higher cost places in the United States, and I got a 2017 Jeep, less than 45k miles, fully decked out, and with the pre-owned extended blah blah for 33k, 28 financed. Mid-sized SUV's aren't really that bad if you go used.
Posted on 10/1/19 at 5:37 pm to RogerTheShrubber
quote:
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
Just like houses.
Posted on 10/1/19 at 5:44 pm to GetCocky11
quote:
I'd imagine that these long financing options have helped contribute to that.
Just like college.
Posted on 10/1/19 at 5:47 pm to sodcutterjones
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.
Neither are a lot of parents. And fwiw I don’t recall high school teaching me how to balance a checkbook. But I remember my mother teaching me.
Posted on 10/1/19 at 5:48 pm to Hou_Lawyer
quote:
The 7Yr Auto Loan
Cars have gotten too expensive - in part because Obama-era CAFE regulations have forced them to include lighter (more expensive) materials and "fuel saving" technology in their designs.
Consumers have just taken more ridiculous loans.
This is why automakers are in trouble long term.
Posted on 10/1/19 at 5:50 pm to Tigeralum2008
quote:Waaaay back in the mid ‘70s, the dumb kids at my HS had to take “Fundamentals of Math” in 10th Grade.
But that was an elective which TBH should be mandatory coursework.
It was actually a real world finance primer.
It covered Household budgeting, mortgage information, investing information, personal income taxes, how-to on reading a pay stub, a tiny bit of accounting, etc.
I was instead in Plane Geometry but I was interested more in what they were being presented.
Posted on 10/1/19 at 6:53 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.
no just no. speaking from experience. it is never a good idea to finance something that will last longer than the average length of marriage.
Posted on 10/1/19 at 7:14 pm to LNCHBOX
quote:
Your credit isn't as excellent as you think if you're not getting less than 3% on a vehicle purchase, or more likely you're just taking whatever the dealer offers and not shopping for independent financing.
I forgot to mention that when we buy a vehicle, we buy cars that are a year or two old and low mileage.
That’s where our APR gets a bump.
Buying a new vehicle is a sucker’s game.
We are prime borrowers.
Posted on 10/1/19 at 7:17 pm to Scoop
quote:
I forgot to mention that when we buy a vehicle, we buy cars that are a year or two old and low mileage.
That’s where our APR gets a bump.
Buying a new vehicle is a sucker’s game.
We are prime borrowers.
You can get under 2% on used it your credit is good. Best to stop trying to sound condescending when you're clearly doing something wrong
Posted on 10/1/19 at 7:23 pm to Boring
quote:
Can anyone explain the psychology behind the need/desire to be seen in a shiny new vehicle?
How else am I suppose to lure in a sugar momma?
Posted on 10/1/19 at 7:26 pm to Scoop
Why not finance a nice used car with under 60,000 miles at 3.3% financing?
Posted on 10/1/19 at 7:30 pm to Hou_Lawyer
These are the folks who’s parents taught them nothing and NEED Dave Ramsey as a result.
Posted on 10/1/19 at 7:34 pm to Martini
I’m currently teaching a six day class on personal finance at my school. Twenty signed up, and they’re pretty interested.
We’ve watched some Dave Ramsey videos on college and credit card debt, and I covered Roth IRAs today
We’ve watched some Dave Ramsey videos on college and credit card debt, and I covered Roth IRAs today
Posted on 10/1/19 at 7:44 pm to Paul Allen
The used car market makes no sense often for 2k or 3k more you can get a new car. It doesn’t seem like there is any rhyme or reason to used car car pricing.
Posted on 10/1/19 at 7:56 pm to SuperflyLSU
Just a quick search on Cargurus on dealers within 100 miles of my zip pulled up several mid sized SUVs in the 2015-2017 range, all under 75k miles, and all less than $23k.
Posted on 10/1/19 at 7:57 pm to GetCocky11
quote:
read an article a while back that said new vehicle prices were up something like 29% over the last decade. I'd imagine that these long financing options have helped contribute to that.
Same thing that’s happening in collegiate student loans. Free available money driving prices up
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