Introducing the 97-month car loan


Olde Hornet

Olde Hornet

Well-Known Member
I agree with Suze Orman, if you have to finance for more than 36 months, you are spending to much on your car. 97 months is out of control.

http://autos.yahoo.com/news/introducing-the-97-month-car-loan-202203365.html

Last month Nakisha Bishop took out a loan to buy a $23,000 Toyota Camry and pay off several thousand dollars still owed on her old car. The key to making it work: she got more than six years—75 months in all—to pay it off.

"I had a new baby on the way, and I was trying to keep my monthly payment a little bit lower to help afford child care," Ms. Bishop, a 34-year-old sheriff's deputy in Palm Beach County, Fla., said recently. She pays $480 a month for the 2013 Camry, just $5 a month more than the note on her old car. The car won't be paid off until her 1-month-old daughter is heading to first grade.

Ms. Bishop's 75-month loan illustrates two important trends rippling through the U.S. auto industry. Rising new-car prices and competition among lenders to attract borrowers is pushing loans to lengthier terms. In part, banks see the longer terms as a way to attract buyers, by keeping monthly payments under $500 a month.

The average price of a new car is now $31,000, up $3,000 in the past four years. But at the same time, the average monthly car payment edged down, to $460 from $465—the result of longer loan terms and lower interest rates.
 
Olde Hornet said:
I agree with Suze Orman, if you have to finance for more than 36 months, you are spending to much on your car. 97 months is out of control.

http://autos.yahoo.com/news/introducing-the-97-month-car-loan-202203365.html

Last month Nakisha Bishop took out a loan to buy a $23,000 Toyota Camry and pay off several thousand dollars still owed on her old car. The key to making it work: she got more than six years—75 months in all—to pay it off.

"I had a new baby on the way, and I was trying to keep my monthly payment a little bit lower to help afford child care," Ms. Bishop, a 34-year-old sheriff's deputy in Palm Beach County, Fla., said recently. She pays $480 a month for the 2013 Camry, just $5 a month more than the note on her old car. The car won't be paid off until her 1-month-old daughter is heading to first grade.

Ms. Bishop's 75-month loan illustrates two important trends rippling through the U.S. auto industry. Rising new-car prices and competition among lenders to attract borrowers is pushing loans to lengthier terms. In part, banks see the longer terms as a way to attract buyers, by keeping monthly payments under $500 a month.

The average price of a new car is now $31,000, up $3,000 in the past four years. But at the same time, the average monthly car payment edged down, to $460 from $465—the result of longer loan terms and lower interest rates.
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I did a 70 month loan fresh out of college. I am just now finished paying for my truck while my homeboy has bought and paid off two vehicles in the same amount of time. One of my worst mistakes ever.
 

I dont see myself getting a car loan past the 5 years...I think 3 years is better..but then I buy a car every blue moon.;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
 
If you give me a 0% interest I would take it. :lol: Anything besides that is a fools dream. :lol:
 
I agree. I am pushing 350K and still rolling. I am gonna roll until Ole Bessie gives out, then all I am gonna do is rebuild the engine for less then 1000K and ride for another 5 years. :emlaugh: I have been rolling in my truck for 15 years and I am gonna roll another 5 at least. Those young cats at work be laughing at me, but they don't realize the joke is on them and those car notes. :emlaugh:
chocalate_topaz said:
I dont see myself getting a car loan past the 5 years...I think 3 years is better..but then I buy a car every blue moon.;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
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you haven 't lied Cee. I see folks I know make half of my salary in high end cars...I'm like :smh:

My old pastor in Norfolk, VA used to talk about living above your means lifestyle folks have adopted. He used to call it living and driving around in your bread of sorrow...cause those big long car payments...;they gonna irk the crap out of you real quick. I refuse to drive or live in something that FORCES me to have to go to work well past the point I want to work.
 
CEE DOG said:
I agree. I am pushing 350K and still rolling. I am gonna roll until Ole Bessie gives out, then all I am gonna do is rebuild the engine for less then 1000K and ride for another 5 years. :emlaugh: I have been rolling in my truck for 15 years and I am gonna roll another 5 at least. Those young cats at work be laughing at me, but they don't realize the joke is on them and those car notes. :emlaugh:
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That's what my pops did. He drove that 72 Chevy for damn near 20 years. I remember the engine went out on it and he dropped another one in there. Then, he went and got an 82 Chevy in 93 and drove that one for another 4-5 years.
 
It's funny I just had this conversation with a co-worker about this today. He wants to buy a new van for his family, I asked him whats wrong with the old one, he said nothing, it's paid for, has less than 250K miles and he put in a new transmission last year, so I asked why get a newer one, and his reply was; because it is time for a newer one. He works in the defense industry which is currently shaky when it comes to jobs and he's been with his current company for less than 2 years. This is a grown man, seasoned, not some newbie fresh out of college. I told him do what you got to do, but it wouldn't be me. Like most of ya'll I'm trying to hold on to my vehicle it's a Toyota Matrix 12yrs old and less than 180K miles.
 
CEE DOG said:
I agree. I am pushing 350K and still rolling. I am gonna roll until Ole Bessie gives out, then all I am gonna do is rebuild the engine for less then 1000K and ride for another 5 years. :emlaugh: I have been rolling in my truck for 15 years and I am gonna roll another 5 at least. Those young cats at work be laughing at me, but they don't realize the joke is on them and those car notes. :emlaugh:
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My nearly seventeen year old Malibu crossed the 300k threshold today. The transmission was rebuilt 3 years ago...cost right at a grand. That bad boy has saved me some money over the years, I'll be driving it until it can't do it anymore.
 

My 2001 Malibu is paid for. I'm not looking a new car. 190k miles and the engine is still good. I'm riding until the wheels fall off. Then, I'm going to put some more on it and keep on riding.

The one car I want is a 1980 Buick Electra like my parents had when I was growing up. Deuce and a quarter!!! I want one so bad! I'm about to scour the country looking via the internet. lol
 
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