Antimustachianism is not just for 'Murricans - 8 year car loans!

[randomAustinGuy]

This article about eight-year car loans caught my eye.  A true gem:

Asked if she was worried about any extra risk from adding a year to her loan, she said using the option for accelerated payments may end up improving her credit score. “It makes my credit look good.”

http://www.bloomberg.com/news/2014-08-20/eight-year-car-loans-fuel-canada-sales-over-debt-warnings.html?cmpid=yhoo

[daverobev]

About 37 cents of every retail dollar spent that month was car related, compared with about 31 cents in the U.S. The agency reports retail sales for June on Aug. 22 in Ottawa.

Mindblowing, really.

[daverobev]

Also

“People don’t buy price, they buy a payment,” Cloutier, 59, said. Today’s buyer wants monthly payments around C$200, a goal made attainable by longer loan terms and low borrowing costs, he said.

[dragoncar]

Can't wait for interest-only car loans

[gimp]

“People don’t buy price, they buy a payment,” Cloutier, 59, said. Today’s buyer wants monthly payments around C$200, a goal made attainable by longer loan terms and low borrowing costs, he said.

Yep, I've heard this as well. People walk on to the lot and say: "Sell me the nicest car you can for $350/month."

[strider3700]

The radio ad's here are pushing the 8 year low payment loans.  Advertising a used 19k ram 1500 for only X amount every two weeks at 4.8%  and if you have credit card debt adding 10K cash back increases the payment by only $30!  I wish I could remember the exact values they list as it was clear by the time you're done paying the truck off it'll be worth almost nothing.

[dragoncar]

The radio ad's here are pushing the 8 year low payment loans.  Advertising a used 19k ram 1500 for only X amount every two weeks at 4.8%  and if you have credit card debt adding 10K cash back increases the payment by only $30!  I wish I could remember the exact values they list as it was clear by the time you're done paying the truck off it'll be worth almost nothing.

That's actually a pretty sweet deal on the CC refinance.  But I'm sure they get you on the total price.

[prudent_one]

“People don’t buy price, they buy a payment,” Cloutier, 59, said. Today’s buyer wants monthly payments around C$200, a goal made attainable by longer loan terms and low borrowing costs, he said.

Yep, I've heard this as well. People walk on to the lot and say: "Sell me the nicest car you can for $350/month."

One of the great ploys that car salespeople use is based on the fact people are payment buyers.

So, how much were you looking to spend?
"$350 a month."
up to...?
"No more than $370."

So subtle, so smooth. That quick, the buyer has guaranteed they will be paying $20 more a month than they wanted to.

[taekvideo]

lol I've heard people talking about costs in terms of the monthly payment so many times... but I never understood what they meant until now.  I always assumed they were talking about leases...

[RetiredAt63]

I can believe it.  When my car's engine blew, while the service department was finding me a newish one, the sales people were all ready to give me a big trade-in and sell me a new car.  They figured they could refinance my loan at the same payment as I have now.  I was sorry for the guy, he was trying to get me a good deal, but I had to explain that I could buy the new engine and get it installed, and be done with the loan next March, and then I could start saving those payments for my next car. He couldn't grasp that I didn't want to keep forking out that payment for another 4 or 5 years.
I like the car, it meets my needs, it is in good shape mechanically, the new engine had about 11,000 km on it, and I do a lot less mileage now, so I figure my car is good for at least 5-8 more years.  By then I may live in town and just take a taxi or the BMW (Montreal version).