97-Month car loan ?

[Grey Ghost]

You got to be kidding...

Introducing the 97-month car loan - Yahoo! Autos (http://autos.yahoo.com/news/introducing-the-97-month-car-loan-202203365.html)

[kylebuck]

Nope
You can't afford new
You don't buy new.

[GRN ENVY]

8 years............:slap:

[ASTROCREEP]

I have heard of 10 year car loans as the norm in Singapore.
Just for a permit from their government to own a car cost around 50k USD.:slap:

[Blue Demon]

Nothing wrong with that as long as the interest rate is very low. I know of a recent 74 month new car loan at 1.9%, hell the interest for the 7 year loan was just a few dollars over 2K. Good way to keep a lower payment and use some of their their money with the low rate.

[FasterTraffic]

I have heard of 10 year car loans as the norm in Singapore.
Just for a permit from their government to own a car cost around 50k USD.:slap:

What. The. F**k.

Certificate of Entitlement

New car buyers are required to buy a Certificate of Entitlement (http://en.wikipedia.org/wiki/Certificate_of_Entitlement). The term "bidding" is often used but, in practice, new car dealers assist in the process. The fee of each successfully obtained COE is added on the costs of a new car based on engine size (usually lower for cars with 1600cc engine or smaller, and higher vice versa). The COE is valid for 10 years. There are provisions for a rebate of the COE if the car is scrapped before 10 years.

The COE costs have increased in recent years. The January 2012 COE for Cat A (1600 cc engine and below) was $48,112 and Category B (1601 cc engine and larger) was $67,889.[11] (http://en.wikipedia.org/wiki/Driving_in_Singapore#cite_note-11) The January 2013 COE for Cat A (1600 cc engine and below) was $87,109 and Category B (1601 cc engine and larger) was $92,901.

[Frizzle]

hmmm

I wonder what my payments would be on a new Z06 C7 or even a Lambo

However there is no friggen way I'd get such a long term loan for a Camry :ack:

[Ol Timer]

No problem if you don't mind being upside down long after the car's out of warranty.

[Grey Ghost]

They are going to start dishing out ridiculous car loans (just like with the home loans) and have another similar meltdown on their hands in a few yrs. I don't even want the thought of a 60 month. loan for any car.

[Torqaholic]

8 years............:slap:

If it was zero interest I'd be all for that since I typically own a car for about a dozen years anyway.

[Torqaholic]

They are going to start dishing out ridiculous car loans (just like with the home loans) and have another similar meltdown on their hands in a few yrs. I don't even want the thought of a 60 month. loan for any car.


They offered 6 years zero interest on my truck but I told them to set it up for 4 because I don't want any recurring payments after I retire :D

[GRN ENVY]

If it was zero interest I'd be all for that since I typically own a car for about a dozen years anyway.

Putting it that way who wouldn't do that. But It wouldn't take long for someone to get upside down on their loan for that long with an interest rate

[Grey Ghost]

They offered 6 years zero interest on my truck but I told them to set it up for 4 because I don't want any recurring payments after I retire :D

I don't know that I will ever buy another new vehicle. I started using a GM CC back in the 90s to build up the cash incentive. I can still get $3k off anything...along with any other current incentives...I still can't bring myself to buying another new one.

[Admiral Blue]

Is there an interest-only payment option too? :)

[snide]

Finally, I can afford that Bently Continental! :party::party::party:

[78SA]

75 months to get a payment under $500 for a Camry?! :slap:

[jaxgator]

Nothing wrong with that as long as the interest rate is very low.

But it's not for the lady that bought the Camry. She ends up paying 13k in interest. That's more than half the original price of the car. **** that!

[6spdC6]

They are going to start dishing out ridiculous car loans (just like with the home loans) and have another similar meltdown on their hands in a few yrs. I don't even want the thought of a 60 month. loan for any car.

:seasix: Right on!



Wow thats a lot of time, going to get a lot of people in trouble just like the government forcing banks to reduce their requirements in giving mortgages. We saw how well that worked out. :wtf::omg:

As for me I hope to never have to use anything close to that time frame to buy a car/truck. I tend to save money for a good down payment along with my trade in or outright purchase and if I need a loan do to circumstances never over 3 years.

[onedef92]

Nope
You can't afford new
You don't buy new.

I've never owned a new car in my life and see no reason to break a perfectly good track record now.

[FasterTraffic]

I don't even want the thought of a 60 month. loan for any car.

We always get a 60-month loan and then make larger payments. That way, if there is some sort of crisis, I have the flexibility to just make the "regular" payment. It's a hedge in a world where employment is anything but guaranteed.

[Burro (He/Haw)]

If the price of vehicles continues its uphill trajectory, and wages stagnate, these ridiculous loans will become more and more common for people who insist on buying new.

Too bad we don't have a douchecup car salesman around to chime in aint it?
:leaving:

[Burro (He/Haw)]

It's a hedge in a world where employment is anything but guaranteed
I do the exact same thing. The only caveat is, you gots to be disciplined. Ain't no "Lets make the minimum for a couple months and finish off the sex dungeon" ideas.

[Bucwheat]

Looked at a motorhome this past weekend and they will finance for 240 months.:slap:

[Bill]

Putting it that way who wouldn't do that. But It wouldn't take long for someone to get upside down on their loan for that long with an interest rate

Any lender making these ridiculously long car loans should also demand large down payments and gap insurance. There's too much risk of things going south when the collateral is a depreciating asset.

[Grey Ghost]

I've never owned a new car in my life and see no reason to break a perfectly good track record now.

Just because of the depreciation ? Do you still finance the used car ?

[Y2Kvert4me]

But it's not for the lady that bought the Camry. She ends up paying 13k in interest. That's more than half the original price of the car. **** that!Not quite that much in interest, it noted she rolled "several thousand" from her upside-down trade-in into the new loan. Dumb, but increasingly common move.

Long term loans aren't a problem, so long as people actually keep their vehicles until paid off. But most people don't (like in this example). She will probably go car shopping again in 3-4 years, and will be way upside-down on this 6+yr loan. If a bank allows her to roll that debt into the next loan, the problem continues to get worse.

I think people justify this by figuring they'll always have a monthly car payment, so "only $5 more a month" makes it seem reasonable.
This logic is what once made leases so popular, and also why car dealers don't like to talk price, they only want to discuss what monthly payment you can afford.

[onedef92]

Just because of the depreciation ? Do you still finance the used car ?

Yes, due to depreciation. I haven't fiinanced a car in nearly 10 years, but I've certainly done so before.

I don't like car notes. All of ours are paid off and running and that's the way we prefer it.

[jaxgator]

Not quite that much in interest, it noted she rolled "several thousand" from her upside-down trade-in into the new loan. Dumb, but increasingly common move.

Oh yeah, I forgot about her rolling her upside down trade-in into the loan. I stand corrected. :seasix:

I think people justify this by figuring they'll always have a monthly car payment, so "only $5 more a month" makes it seem reasonable. This logic is what once made leases so popular, and also why car dealers don't like to talk price, they only want to discuss what monthly payment you can afford.

That's insane! I recently paid off my Vette and there ain't no way I want another car payment. Hell, it's only got 94k on the clock. Should be several more miles before I need another car.

[Bill]

Oh yeah, I forgot about her rolling her upside down trade-in into the loan. I stand corrected. :seasix:



That's insane! I recently paid off my Vette and there ain't no way I want another car payment. Hell, it's only got 94k on the clock. Should be several more miles before I need another car.

94,012 miles:

http://www.corvetteblogger.com/images/content/060410_4.jpg

:D

[snide]

We always get a 60-month loan and then make larger payments. That way, if there is some sort of crisis, I have the flexibility to just make the "regular" payment. It's a hedge in a world where employment is anything but guaranteed.

I've done that. It's fun to get an invoice for $0 in the mail. :lol:

[jaxgator]

94,012 miles:

http://www.corvetteblogger.com/images/content/060410_4.jpg

:D

Dayum! Ok, yeah, if that happens then I guess I would be in the market for a new car. :funny:

[vetteman9368]

I could actually see the usefulness of it for certain situations. I found a cream puff of a used duramax that i will use for my business. A half ton just won't get the job done, whole reason I traded. Since i bought used, still in warranty, 60 months was plenty. However if my options had only been new or trucks with tons of miles, I'd have bought new, and a longer term finance option would have been good.

[FasterTraffic]

I do the exact same thing. The only caveat is, you gots to be disciplined. Ain't no "Lets make the minimum for a couple months and finish off the sex dungeon" ideas.

:iagree: and :lol:.