Ford Shelby GT500 Forum banner

1 - 20 of 37 Posts

·
Registered
2014 GT500
Joined
·
420 Posts
Discussion Starter #1
I just saw a commercial for both Dodge (Ram) and GM for an 84 month car loan.........can people REALLY be that stupid? I thought they were getting bad when they started offering 5 year car loans.

That should be illegal if only to protect the stupid from themselves!
 

·
Registered
Joined
·
275 Posts
The short answer is yes! Someone tried to argue the logic with me that it was a great deal the other day if it is interest free for 84months if you plan to keep the car for 10 yrs. lol
Lets be realistic, who really keeps cars 10 yrs that needs to take 84 month loans?

Side note, they are doing this because cars are getting too damned expensive. Its even sicker when $800+ month car loan payments are pretty much the norm now.
 

·
Registered
Joined
·
157 Posts
YES a LOT of people are that stupid to take out 7 year car loans.
i work at a new car dealer body shop. from my observation point a 7 year car loan is rather common.
worse yet i am seeing a few 10 YEAR car loans on trucks.
4 or 5 months ago i was repairing a 2018 dodge ram quad cab 4X4 truck with every option available. the truck was wrecked pretty bad and in my opinion it shouldn't have been fixed. the owner owed $80K on the truck and had gap insurance. the owner wanted the truck totaled and the insurance co wanted it fixed, $50K repair bill, so it got fixed.
it had 60 K miles on it with bald tires. the owner didn't have the $$$ to buy tires, they were $$$ 20" tires and our estimate on the same new tires was $2500 installed. yet somehow he traded the truck in and bought a new truck.
 

·
Registered
Joined
·
275 Posts
YES a LOT of people are that stupid to take out 7 year car loans.
i work at a new car dealer body shop. from my observation point a 7 year car loan is rather common.
worse yet i am seeing a few 10 YEAR car loans on trucks.
4 or 5 months ago i was repairing a 2018 dodge ram quad cab 4X4 truck with every option available. the truck was wrecked pretty bad and in my opinion it shouldn't have been fixed. the owner owed $80K on the truck and had gap insurance. the owner wanted the truck totaled and the insurance co wanted it fixed, $50K repair bill, so it got fixed.
it had 60 K miles on it with bald tires. the owner didn't have the $$$ to buy tires, they were $$$ 20" tires and our estimate on the same new tires was $2500 installed. yet somehow he traded the truck in and bought a new truck.
HOLY HELL!!! I did not even think of that from an insurance standpoint. Wow a $50k fix would scare me. lol. Wonder how much negative equity that guy rolled in on the new one. He now has a $100k Ram. lol
 

·
Premium Member
Joined
·
253 Posts
If the interest is 0% then what difference does it make if its 4yrs or 7yrs? You can pay more and it can be paid off sooner. And if you get in trouble you can go back to the regular payment.

On my wife’s car the Interest was 2% for a 4yr or 6yr loan. I choose the 6yr loan. But I made payments as if it was a 4yr. I paid it off in 4yrs and the amount of interest is very close to the amount of a 4yr. Do the math, it comes out the same.
 

·
Moderator/Admin Dude!
2020 CFTP on order 2011 Kona Blue/white
Joined
·
32,445 Posts
If the interest is 0% then what difference does it make if its 4yrs or 7yrs? You can pay more and it can be paid off sooner. And if you get in trouble you can go back to the regular payment.
While this is true, the problem arises when someone ends up needing to sell the car before it is paid off. The long-period car loans would increase the likelihood of being upside down on the value vs sale price.
 

·
Registered
Joined
·
5,538 Posts
While this is true, the problem arises when someone ends up needing to sell the car before it is paid off. The long-period car loans would increase the likelihood of being upside down on the value vs sale price.
I'm actually astonished of how many seem to "forget" that when getting into long-term loans with little or none down. Now, an argument can be made that if you have the cash reserves and could cover the difference/pay off the balance at the time of sale, then you're better off investing the money, borrowing at 0%, and make the minimum payments. However, that scenario is probably valid for about 2% of call car buyers. Also, these 0% loans are for new cars. We all know that as the first owner, you will be taking the biggest depreciation hit on this vehicle (in normal circumstances), so that needs to be taken into consideration as well.

Personally, we carry as little debt as possible. As much as I liked having a new car and we've had it for 10 years/176,000 miles, buying Amy's Edge new would not be a decision I'd probably repeat in the future. We bought my truck 3 years old and it was is great condition with a solid maintenance background. I believe it was about $20,000 less than than MSRP at that point.
 

·
Registered
Joined
·
275 Posts
If the interest is 0% then what difference does it make if its 4yrs or 7yrs? You can pay more and it can be paid off sooner. And if you get in trouble you can go back to the regular payment.

On my wife’s car the Interest was 2% for a 4yr or 6yr loan. I choose the 6yr loan. But I made payments as if it was a 4yr. I paid it off in 4yrs and the amount of interest is very close to the amount of a 4yr. Do the math, it comes out the same.
Realistically, most people do not overpay on their car loans. I know we all say we will and justify taking the longer term, but the reality is most do not. I can speak from experience here.
Goose hit the nail on the head! When people go to sell, they are even more upside down in the loan and now have to carry more over and end up even worse off. Its a vicious cycle!
While I cannot afford to do this, I can see why they suggest 20% down and doing 36 month loans. because you now have equity in the car and you may not realize how much money you are losing on trade because the equity tricks you if you trade mid term. If its paid off already, then its not an issue.
Another note is with warranties being 36months and people taking 8yr loans. As soon as something breaks outside of warranty they try to offload the car because they cannot afford to fix it because they already have an $800 a month car payment they can't afford.

This is the sad ass truth about how things are these days. Things just get unrealistically expensive and people need to make bad choices to get by.
 

·
Premium Member
2008 Metalic Vista Blue Convertible
Joined
·
5,703 Posts
The short answer is yes! Someone tried to argue the logic with me that it was a great deal the other day if it is interest free for 84months if you plan to keep the car for 10 yrs. lol
Lets be realistic, who really keeps cars 10 yrs that needs to take 84 month loans?

Well, I'm someone with six vehicles ten years old, in fact, there are also Three over twenty years old, a couple relativey new..,. No payment on any of them..... Its nice living Debt Free,
People really need to live wthin their means, it took me 55 years of hard work to get what I have, and part of that was not buying cars I had to finance for over 3 years, and have not financed one for over 20 years.
People need to be more responsible!!!!!
 

·
Premium Member
Joined
·
634 Posts
Well, I'm someone with six vehicles ten years old, in fact, there are also Three over twenty years old, a couple relativey new..,. No payment on any of them..... Its nice living Debt Free,
People really need to live wthin their means, it took me 55 years of hard work to get what I have, and part of that was not buying cars I had to finance for over 3 years, and have not financed one for over 20 years.
People need to be more responsible!!!!!
You know last few months I had been noticing a lot of new vehicles on the road. I’m in the market for a couple vehicles, but I will wait till the 0% offers come in a few months. I only use a 0% card for the 18 mths intro, don’t carry a large balance and then get a new card. Our credit scores finally have us in the drivers seat on things, but I am careful. There will be a lot of folks crying the blues come summer/fall.
 
  • Like
Reactions: PM-Performance

·
Premium Member
Joined
·
5,230 Posts
When I was much younger, I HAD to finance in order to have a GOOD car.
I was always aware of how much I owed and NEVER missed a payment.
As I advanced in my career earnings, I was able to cut my debt so that I only owed on my HOUSE (not extravagant by any means).
Don't plan to take on ANY more Long Term Debts (for the rest of my life)
My only outstanding debts are Death and Taxes.
Taxes, I keep up with. Death: I am a Christian...
After I die, nothing that I personally can do about it. Family won't have any Debt, and will have a little $$$ in the bank. (and hopefully FOND Memories of this OLD Coot)

In the mean time Have as much FUN as I legally and reasonably can!
? ? ???
 

·
Premium Member
Joined
·
6,105 Posts
My take...There is no such thing as a free lunch. When manufacturers offer 0% for 84 means they are just taking less off the MSRP. In the end it is total dollar out the door. The dealers and manufacturers know this. They have just found that marketing a lower payment is more effective than marketing total expense.

I saw a sign about a month ago the said the national debt (prior to covid 19) equates to $71,000 per person in America. Now it is probably $80,000. We as a country will never crawl out of that hole and have screwed all future generations. For those of us that have tried to live a fiscally responsible life, we will end paying for the others that have not.
 

·
Registered
Joined
·
275 Posts
While I agree people need to be responsible, I also think it is predatory for these places to be offering 84month loans and telling people they are approved for $35K cars as long as they make $200 a week and no down payments or credit needed.
Some people are just dumb. You got these people that work at Dunkin donuts 15hrs a week with $30k cars they cant afford and upside down in because no money down and long term loans and the payments are %80 of their income because the dealer told them they could approve them somehow, its no wonder things are so bad. Same shit happened with housing back in the mid 2000's
Not to mention how cheap cars are now $30k+. Shit I was at the Ford dealer getting maintenance and saw a new Escape that was $38k!!! Edge ST was $52k!!!!
WTF!!!!

All that for there to be airports and shipyards full of new cars they cannot unload, but they just keep bringing in more.
 

·
Registered
2014 GT500 DIB/Satin Black TP/PP
Joined
·
240 Posts
My wife and I started with a low 600 and mid 500 score 5 years ago with a decent amount of debt and 2 beat up, over 200k mile trucks that required quite of a bit of my fixing to keep them running well and the only place that would let us rent was on the boarder of the ghetto. Now I've cleared the 800 mark and shes getting close, we've not been denied a loan in 5 years, our credit cards are paid except for a revolving 10%, and the only debt we have is the almost 100k in car loans. Her car is a '19 fusion with all the fancy crap and a 0% interest loan and I daily my shelby with a 4% loan. I definitely understand the discipline thing, but it pays off. I also just saw the 84 month loan advertising and almost choked on the drink I was sipping. The only way you could come out on top is with a 0% or increadibly low interest loan and making higher than the required payments. CSR are getting crazy expensive for the middle of the road models and because people continue to pay, they'll continue to rise. The more the companies add the "high class" extras in as standard features, the more the can slowly jack up the prices.
 

·
Premium Member
Joined
·
253 Posts
Realistically, most people do not overpay on their car loans. I know we all say we will and justify taking the longer term, but the reality is most do not. I can speak from experience here.
Goose hit the nail on the head! When people go to sell, they are even more upside down in the loan and now have to carry more over and end up even worse off. Its a vicious cycle!
While I cannot afford to do this, I can see why they suggest 20% down and doing 36 month loans. because you now have equity in the car and you may not realize how much money you are losing on trade because the equity tricks you if you trade mid term. If its paid off already, then its not an issue.
Another note is with warranties being 36months and people taking 8yr loans. As soon as something breaks outside of warranty they try to offload the car because they cannot afford to fix it because they already have an $800 a month car payment they can't afford.

This is the sad ass truth about how things are these days. Things just get unrealistically expensive and people need to make bad choices to get by.
Perhaps for others but not for me. I always pay more especially if I choose a longer term loan. Its not just something I say. My comment was more about people who understand the rates and deal with it with financial sense.

I pay more on my house, always have. I have a 15yr mortgage and paying now over double the payment. Will have it paid off in less than two years. I don’t have a problem with loans as long as you are financially responsible and don’t do what others are talking about. I did get a loan on my GT500 and then my Dad wanted to get in on it and offered me a lower rate because he is retired and wanted a better rate than he was getting. Paid him off in 2yrs with a 2% loan. We own GT500’s and probably other nice cars/trucks, don’t think we fit into the scenario that everyone is talking about.
 

·
Premium Member
2008 Vapor/Black Coupe
Joined
·
1,752 Posts
Everyone has their own opinions on financial responsibility. My basic principal is loans are fine, but it's a contract you owe. We could've walked away from a condo in the financial crisis, but we sold it at a huge loss because that's the contract she signed when she bought it and it was the right thing to do.

For anyone struggling with finances, we did Dave Ramsey's Financial Peace class at church when we got married (even though we were both in good financial shape) and I think it's an excellent class to make you think about your financial situation. I don't follow everything he teaches (I like my credit card points, but I pay them off), but the principals are sound. I would highly recommend it to any friends who are struggling or making poor decisions to keep up with the Joneses.

As for the national debt, it just doesn't make any sense. It seems to be a number that has no consequence at this point, so they just print more money. 2 trillion bailout with 2 trillion backup, no problem...WTF? The number goes higher and higher but doesn't effect anyone's day to day life... Maybe Bernie is right, just keep printing money and we can all drive Ferrari's for free :p.
 

·
Registered
Joined
·
275 Posts
I have heard from a coworker that his classes were very eye opening as well.
I couldn't agree more on the contract thing. I get kind of pissed when I have friends that charge up stupid stuff and filed for Bankruptsy and bragged they got everything written off. Not long later they were buying new cars and homes and big screen tv's and Macbooks and shit again. Goes to show you doing the right thing doesn't always pay off other than feeling good about yourself.
I have had debt in hard times as well. I stuck it out and paid things off and worked extra and hussled more. Its just the kind of guy I am
 
1 - 20 of 37 Posts
Top