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This is the way over 60% of every auto loan was done, what has changed is that nobody can afford the price of a new car
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2022 Dec 21, 8:54am 587 views 20 comments
by Tenpoundbass ➕follow (7) 💰tip ($0.12 in tips)
Comments 1 - 20 of 20
1
RWSGFY
2022 Dec 21, 11:12am
RWSGFY
2022 Dec 21, 11:12am
-- Back in my youth I could go to the store with a quarter in my pocket and come out with a pack of gum, a gallon of milk, a bottle of whisky for my dad, a box of candy for my mom, a pound of tobacco for my Gramps and a toy for my little sister. You can't do it nowadays and you know why?
-- Um, inflation?
-- No, stupid, it's the goddamned security cameras everywhere!
-- Um, inflation?
-- No, stupid, it's the goddamned security cameras everywhere!
2
RWSGFY
2022 Dec 21, 11:19am
RWSGFY
2022 Dec 21, 11:19am
The $700 per months Maserati is most probably for a lease with very low miles allowance and ungodly downpayment.
The $1000 per months Toyota shitbox is probably a combination of low downpayment, short loan period, ungodly interest, ADM and shitload of extras piled on.
The only thing which can be fixed now is the interest: I bet their local CU has auto loans good 3-4 points lower than whatever shit the dealer has foisted on them.
The $1000 per months Toyota shitbox is probably a combination of low downpayment, short loan period, ungodly interest, ADM and shitload of extras piled on.
The only thing which can be fixed now is the interest: I bet their local CU has auto loans good 3-4 points lower than whatever shit the dealer has foisted on them.
3
GNL
2022 Dec 21, 2:14pm
GNL
2022 Dec 21, 2:14pm
RWSGFY says
+ an underwater trade-in?
The $700 per months Maserati is most probably for a lease with very low miles allowance and ungodly downpayment.
The $1000 per months Toyota shitbox is probably a combination of low downpayment, short loan period, ungodly interest, ADM and shitload of extras piled on.
The only thing which can be fixed now is the interest: I bet their local CU has auto loans good 3-4 points lower than whatever shit the dealer has foisted on them.
+ an underwater trade-in?
4
pudil
2022 Dec 21, 2:46pm
If you need to take out a car loan to buy a car, and you’re over 30, the car payment isn’t your issue.
Right after college I took a ridiculous 8% interest loan to buy a $16K base Corolla because I needed something reliable. I paid that off quick and ever since I might finance if they throw a 2% interest rate at me plus a lower price, but otherwise I’ll pay cash.
You know a car lasts about 10 years. If your car is 5 years old or older, you need to start saving. Saving 30-40K for an average new car is very doable over 5 years. If you want something a little nicer, go used or save some more.
Supply chain made stuff weird, but that seems to be sorted out. Now interest rates are higher, but that’s normal. I’m tired of all this .5% interest in my savings accounts. Let’s get inflation under control then leave rates as is. I’m tired of irresponsible people with no money driving prices up because they can afford the payment at 0% interest.
Right after college I took a ridiculous 8% interest loan to buy a $16K base Corolla because I needed something reliable. I paid that off quick and ever since I might finance if they throw a 2% interest rate at me plus a lower price, but otherwise I’ll pay cash.
You know a car lasts about 10 years. If your car is 5 years old or older, you need to start saving. Saving 30-40K for an average new car is very doable over 5 years. If you want something a little nicer, go used or save some more.
Supply chain made stuff weird, but that seems to be sorted out. Now interest rates are higher, but that’s normal. I’m tired of all this .5% interest in my savings accounts. Let’s get inflation under control then leave rates as is. I’m tired of irresponsible people with no money driving prices up because they can afford the payment at 0% interest.
5
stereotomy
2022 Dec 21, 2:46pm
stereotomy
2022 Dec 21, 2:46pm
I financed three new cars in the last 20 years at 0%. Ordinarily, I'd castigate myself as an idiot, but it turns out that new cars of the particular make and model (foreign) that I wanted were only 2-3 G's more than 2-year old used cars and came with 5-year warranties and 2-3 years free maintenance. My first 0% loan was for 2 years, while my last was for 4 years.
I look at it this way: after 15 years of ZIRP, I at least got 3 bites of that sop. I couldn't even cash in on the "cash for clunkers" $4500 giveaway at the time.
"They" want you to spend and are punishing the savers by ZIRP.
"You will eat ze bugs and own nothing and you will be happy" - Merry Christmas from Uncle Claus.
I look at it this way: after 15 years of ZIRP, I at least got 3 bites of that sop. I couldn't even cash in on the "cash for clunkers" $4500 giveaway at the time.
"They" want you to spend and are punishing the savers by ZIRP.
"You will eat ze bugs and own nothing and you will be happy" - Merry Christmas from Uncle Claus.
6
HeadSet
2022 Dec 21, 4:09pm
HeadSet
2022 Dec 21, 4:09pm
pudil says
This
If you need to take out a car loan to buy a car, and you’re over 30, the car payment isn’t your issue.
This
7
HeadSet
2022 Dec 21, 4:19pm
HeadSet
2022 Dec 21, 4:19pm
pudil says
Same here. I remember in Jan 1991 when I came back from overseas and wanted to buy a new car. All the dealerships had ridiculous packs on the cars, stuff like "etch glass" and "paint protection." The dealers refused to remove these packs, and cars were selling way above sticker. I decided not to buy. That summer, however, we had that Savings and Loan collapse and car loans were very hard to come by. Instead of irresponsible borrowers using 5-year loans to bid up prices, no loans meant few buyers. I then bought a brand-new loaded Toyota Supra Turbo targa roof for $5,000 below sticker, as I was a cash buyer.
I’m tired of irresponsible people with no money driving prices up because they can afford the payment at 0% interest.
Same here. I remember in Jan 1991 when I came back from overseas and wanted to buy a new car. All the dealerships had ridiculous packs on the cars, stuff like "etch glass" and "paint protection." The dealers refused to remove these packs, and cars were selling way above sticker. I decided not to buy. That summer, however, we had that Savings and Loan collapse and car loans were very hard to come by. Instead of irresponsible borrowers using 5-year loans to bid up prices, no loans meant few buyers. I then bought a brand-new loaded Toyota Supra Turbo targa roof for $5,000 below sticker, as I was a cash buyer.
8
Tenpoundbass
2022 Dec 21, 6:10pm
Tenpoundbass
2022 Dec 21, 6:10pm
GNL says
I think that had a lot to do with it. They just bought a Toyota 2 years ago, but they wanted to get out of it.
+ an underwater trade-in?
I think that had a lot to do with it. They just bought a Toyota 2 years ago, but they wanted to get out of it.
9
GNL
2022 Dec 21, 7:08pm
GNL
2022 Dec 21, 7:08pm
HeadSet says
How was the quality and how long did it last? I've always thought they were a nice looking car. Would make a fun classic to own now. You could do a lot to upgrade them.
I then bought a brand-new loaded Toyota Supra Turbo targa roof for $5,000 below sticker, as I was a cash buyer.
How was the quality and how long did it last? I've always thought they were a nice looking car. Would make a fun classic to own now. You could do a lot to upgrade them.
10
GNL
2022 Dec 21, 7:11pm
GNL
2022 Dec 21, 7:11pm
Tenpoundbass says
I married a divorcee and we wanted to get out of the car she and her ex had a loan on. We traded it in and took quite a bath on it. Long term, we got a much better vehicle and built her credit much better because of it. But yeah, we took a hosing.
GNL says
+ an underwater trade-in?
I think that had a lot to do with it. They just bought a Toyota 2 years ago, but they wanted to get out of it.
I married a divorcee and we wanted to get out of the car she and her ex had a loan on. We traded it in and took quite a bath on it. Long term, we got a much better vehicle and built her credit much better because of it. But yeah, we took a hosing.
11
HeadSet
2022 Dec 22, 11:26am
HeadSet
2022 Dec 22, 11:26am
GNL says
The quality was typical Toyota great, but I did have 2 issues. The AC had a problem and lost coolant because of a defective valve, but that was fixed under a recall warranty. The Targa roof had an issue where it filled up with water if parked in heavy rain. Never rusted since it was aluminum, but I would have to take the roof off and tilt it to drain. I also replaced the power antenna and the stereo, but those were easy DIY stuff. I kept the car for about 10 years and sold it to my brother, who wrecked it soon after. I bought the car because it had the best solid ride of any car I test drove. About a year after I bought the Supra, I was stationed to England, and the AF shipped the car for me. My mom is English, so I had opportunities to visit some relatives. When I had my grandma in the car, I would lower the steering wheel as to be out of site. Since England is a right-hand drive place, it looked to all who saw us as a 75-year-old lady was driving a rather hot sports car.
HeadSet says
I then bought a brand-new loaded Toyota Supra Turbo targa roof for $5,000 below sticker, as I was a cash buyer.
How was the quality and how long did it last? I've always thought they were a nice looking car. Would make a fun classic to own now. You could do a lot to upgrade them.
The quality was typical Toyota great, but I did have 2 issues. The AC had a problem and lost coolant because of a defective valve, but that was fixed under a recall warranty. The Targa roof had an issue where it filled up with water if parked in heavy rain. Never rusted since it was aluminum, but I would have to take the roof off and tilt it to drain. I also replaced the power antenna and the stereo, but those were easy DIY stuff. I kept the car for about 10 years and sold it to my brother, who wrecked it soon after. I bought the car because it had the best solid ride of any car I test drove. About a year after I bought the Supra, I was stationed to England, and the AF shipped the car for me. My mom is English, so I had opportunities to visit some relatives. When I had my grandma in the car, I would lower the steering wheel as to be out of site. Since England is a right-hand drive place, it looked to all who saw us as a 75-year-old lady was driving a rather hot sports car.
13
GNL
2022 Dec 22, 5:37pm
GNL
2022 Dec 22, 5:37pm
pudil says
Wrong. It's about mileage and maintenance. I bet I get 300K out of my Camry regardless if it takes 10 or 20 years to put those miles on it.
You know a car lasts about 10 years.
Wrong. It's about mileage and maintenance. I bet I get 300K out of my Camry regardless if it takes 10 or 20 years to put those miles on it.
14
zzyzzx
2023 Feb 6, 8:38am
zzyzzx
2023 Feb 6, 8:38am
https://www.reddit.com/r/askcarsales/comments/10sxngk/its_negative_equity_season/
It’s negative equity season
Just finished working with a customer who bought a car 8 or so months ago from a known sled lot in town. It’s a 6 year old luxury sedan with 75k on it. He tells me that he’s making 900 per month payments on it and he wants to downsize and lower his payments. Easy enough.
We go inside, where I find out that the car he currently owes $32k on is worth about $12k to us. Trade in book is about 11 and retail is about 17. He bought it at the height of the market, financed tax title and license as well as an extended warranty and gap and now he owes almost triple what he can get for it.
I told him that unless he has $18k plus down, there’s probably nothing we can do for him, and to call me if he wins the lottery.
It’s negative equity season
Just finished working with a customer who bought a car 8 or so months ago from a known sled lot in town. It’s a 6 year old luxury sedan with 75k on it. He tells me that he’s making 900 per month payments on it and he wants to downsize and lower his payments. Easy enough.
We go inside, where I find out that the car he currently owes $32k on is worth about $12k to us. Trade in book is about 11 and retail is about 17. He bought it at the height of the market, financed tax title and license as well as an extended warranty and gap and now he owes almost triple what he can get for it.
I told him that unless he has $18k plus down, there’s probably nothing we can do for him, and to call me if he wins the lottery.
15
HeadSet
2023 Feb 6, 9:02am
HeadSet
2023 Feb 6, 9:02am
zzyzzx says
No pity for this clown. He and his fellow "HowMuchAMonth" types with no regard for price, rates, or term, are who raised used car prices for sane buyers. Best if this clown is off the market while he pays off his short-sighted sloth.
He bought it at the height of the market, financed tax title and license as well as an extended warranty and gap and now he owes almost triple what he can get for it.
No pity for this clown. He and his fellow "HowMuchAMonth" types with no regard for price, rates, or term, are who raised used car prices for sane buyers. Best if this clown is off the market while he pays off his short-sighted sloth.
16
clambo
2023 Feb 6, 9:49am
I have never bought a new car, nor financed a car.
I actually didn't know how to do it; I had no idea that I could borrow money.
My first car was a 1964 Volvo=$200 in 1974.
My next car was a 69 VW Beetle=$500 in 1976
Then 1966 Volvo=$500 and gave the VW to my sister who needed a car.
Later I had a company pickup to drive in Baja Sur Mexico for couple of years.
1983 In Santa Cruz CA I bought a Toyota Corolla but it was in such bad shape I sold it to the mechanic who was fixing it; I decided to get away from them both.
In 1983 a 1971 Chevy Nova which was $600 and an awesome car.
In 1987 a 1977 Toyota pickup=$1500, which felt like a lot of money at that time.
In 1996 a 1983 Toyota pickup=$3000; it blew a head gasket and paid $2500 to fix it in 2007.
In 2007 I was crashed into by a reckless Mexican in Seaside CA; using insurance proceeds I bought a 1998 Toyota Tacoma pickup=$6000
In 2017 I inherited a 2013 Volvo S60 T5
In 2019 I sold the 1998 Toyota Tacoma for $1500; the truck still runs and has 350,000 miles on it.
I would buy parts and fix the cars myself if I could; I put things like water pumps in, changed the brakes, shock absorbers, tie rod ends, fixed radiators, changed thermostats, replaced carburators, etc.
Sometimes I would go to the used bookstore and read the manuals then go home and fix stuff if I could. I recall crawling around my Volvo in the frozen mud once to fix a tie rod end.
I have saved untold thousands of dollars not buying nice cars, but it's sometimes a pain in the ass and I loved riding in new cars like anyone else.
I actually didn't know how to do it; I had no idea that I could borrow money.
My first car was a 1964 Volvo=$200 in 1974.
My next car was a 69 VW Beetle=$500 in 1976
Then 1966 Volvo=$500 and gave the VW to my sister who needed a car.
Later I had a company pickup to drive in Baja Sur Mexico for couple of years.
1983 In Santa Cruz CA I bought a Toyota Corolla but it was in such bad shape I sold it to the mechanic who was fixing it; I decided to get away from them both.
In 1983 a 1971 Chevy Nova which was $600 and an awesome car.
In 1987 a 1977 Toyota pickup=$1500, which felt like a lot of money at that time.
In 1996 a 1983 Toyota pickup=$3000; it blew a head gasket and paid $2500 to fix it in 2007.
In 2007 I was crashed into by a reckless Mexican in Seaside CA; using insurance proceeds I bought a 1998 Toyota Tacoma pickup=$6000
In 2017 I inherited a 2013 Volvo S60 T5
In 2019 I sold the 1998 Toyota Tacoma for $1500; the truck still runs and has 350,000 miles on it.
I would buy parts and fix the cars myself if I could; I put things like water pumps in, changed the brakes, shock absorbers, tie rod ends, fixed radiators, changed thermostats, replaced carburators, etc.
Sometimes I would go to the used bookstore and read the manuals then go home and fix stuff if I could. I recall crawling around my Volvo in the frozen mud once to fix a tie rod end.
I have saved untold thousands of dollars not buying nice cars, but it's sometimes a pain in the ass and I loved riding in new cars like anyone else.
17
HeadSet
2023 Feb 6, 11:19am
HeadSet
2023 Feb 6, 11:19am
clambo says
Best way to get over that is to occasionally rent a car from Avis et al for a road trip. That way you can try out a convertible, pickup, or other style you don't have. Then back to the jalopy.
I loved riding in new cars like anyone else.
Best way to get over that is to occasionally rent a car from Avis et al for a road trip. That way you can try out a convertible, pickup, or other style you don't have. Then back to the jalopy.
18
GNL
2023 Feb 6, 12:36pm
GNL
2023 Feb 6, 12:36pm
Cars are one of the best purchases and worst purchases you can make. Total waste to spend a lot of $$ for something that gets you from point A to B.
19
beershrine
2023 Feb 6, 1:20pm
Interesting how they have 3 different blue book values for cars. Todays retail car asking prices are above those highest values by a lot. IMO. It is because the national "crisis" Uncle Sam has applied to everything screws up business and trade. EPA and the environmental wackos have taken over the rules.
20
komputodo
2023 Feb 6, 1:26pm
komputodo
2023 Feb 6, 1:26pm
GNL says
And you know the people who can barely afford the monthly payment and are always behind are least likely to do any maintenance.
pudil says
You know a car lasts about 10 years.
Wrong. It's about mileage and maintenance. I bet I get 300K out of my Camry regardless if it takes 10 or 20 years to put those miles on it.
And you know the people who can barely afford the monthly payment and are always behind are least likely to do any maintenance.
https://www.fresnobee.com/news/nation-world/national/article270257657.html
In the past when your average car loan was $350 to $450 on the higher end. If you filled out the loan application by the books, hardly nobody qualified for an auto loan, unless you had an upper middle class job, and even then you mortgage and other bills could still eat up your income to debt ratio. So most people fudged their auto loan application to make them seem better off than they were.
What has changed, is we're now seeing car notes going for $550 to the upper $900 for a shitty little consumer car. Not some Beamer or a luxury car. It's as if, every car is a Luxury car now. Before people could and would scrap together every dime to make ends meet to pay their little $350 car payment, even if they could ill-afford it.
My SIL significant other, bought a crappy Toyota mini CRV what ever it's called. Not even a notable car. She's got a major case of the sads now, because it's draining them financially. Her car payment almost $1,000 a month. I mean how can that be? Who in the hell would pay that much for a shit box Toyota. They became what they are, through being affordable, a thousand a month is not affordable. I see billboards advertising $700 a month Maserati's.
It seems to be the current economic policy that comes from the top down, to destroy America's automotive independence of travel. We're too uppity for those Globalist scumbags, that demand we take the piss smelling Bus or Choo Choo train, with the murderous cut throat Somolian refugees, and ungrateful Mexican gangs, risk our lives to get from point A to point B. Our automotive independence is standing in the way.
But yeah sure, when people start noticing this undo burden blame the Dealerships.