Author Topic: Stretch those car payments!  (Read 4787 times)

Gerard

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Stretch those car payments!
« on: July 23, 2012, 04:27:12 PM »
Apparently if you can't afford to pay for a car with six years of financing, you should go for eight years of financing! It's like the anti-mustachian trifecta.

http://www.theglobeandmail.com/report-on-business/economy/debt-burdened-canadians-succumb-to-lure-of-long-term-car-loans/article4434786/

arebelspy

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Re: Stretch those car payments!
« Reply #1 on: July 23, 2012, 05:28:41 PM »
Probably the only reason we don't have 30 year loans on the is that it may outlast the car itself!  ;)
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James

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Re: Stretch those car payments!
« Reply #2 on: July 23, 2012, 06:29:29 PM »
The extra sad thing is that they are under water at the 4-6 years when they go to get a new car, so they just roll the difference into the next vehicle.  this creates larger and larger car loans for vehicles further and further under water, meaning they can't get out of the car loan by selling it without putting in many thousands of cash.  They won't do that, so the dealers have them hooked for many many years.

menorman

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Re: Stretch those car payments!
« Reply #3 on: July 24, 2012, 08:08:28 PM »
Probably the only reason we don't have 30 year loans on the is that it may outlast the car itself!  ;)
Nah, car is likely fine if it gets taken care of, even for someone who drives a lot. However, the advance in tech between cars from 30 years ago and now is much more pronounced (at least IMO) than the advance in house tech.

follicular

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Re: Stretch those car payments!
« Reply #4 on: July 24, 2012, 08:40:23 PM »
I try to drive my cars to the ground and then give them to a charitable organization for the $500 tax write off. I am still happily tooling around in my 2001 nissan altima at 153k miles and plan to do so til it truly dies--in total over the years...maybe $3k in repairs much of it being to replace consumables---tires, brakes, belts, battery.

MY question to you folks: can you do the math to show if there is a breakeven point in buying outright versus lease first then buy vehicle off the lease--usually after 3 years. The benefit with the latter approach is rather low monthly lease payments vs monthly car purchase payments but it could take 8+ years to pay off the darn thing. Any numbers you could share?

Jamesqf

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Re: Stretch those car payments!
« Reply #5 on: July 24, 2012, 11:20:04 PM »
Nah, car is likely fine if it gets taken care of, even for someone who drives a lot. However, the advance in tech between cars from 30 years ago and now is much more pronounced (at least IMO) than the advance in house tech.

Maybe not 30 years, but I have an '88 Toyota pickup that I use for hauling stuff & getting to places down rough dirt roads that the Insight won't handle.  As far as I'm concerned, the advantage of any tech improvements since EFI are more than canceled out by the increase in size & weight.

menorman

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Re: Stretch those car payments!
« Reply #6 on: July 27, 2012, 01:20:18 PM »
Nah, car is likely fine if it gets taken care of, even for someone who drives a lot. However, the advance in tech between cars from 30 years ago and now is much more pronounced (at least IMO) than the advance in house tech.

Maybe not 30 years, but I have an '88 Toyota pickup that I use for hauling stuff & getting to places down rough dirt roads that the Insight won't handle.  As far as I'm concerned, the advantage of any tech improvements since EFI are more than canceled out by the increase in size & weight.
But you're comparing an 88 pickup with a late-model car. Of course the Insight won't handle it. However, I'm pretty sure that whatever that pickup can handle a Ranger or Colorado could also take on. I'm too lazy to go get weight information for all those vehicles, but I don't think the two newer choices are markedly heavier than your pickup.

Jamesqf

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Re: Stretch those car payments!
« Reply #7 on: July 27, 2012, 03:43:18 PM »
But you're comparing an 88 pickup with a late-model car. Of course the Insight won't handle it.

No, I wasn't.  Guess I didn't write clearly enough.  I have the two vehicles (and the Insight's a '00, so it's not exactly a late model :-)), which I use for different purposes.  The Insight's for most on-highway & smooth dirt travel ('cause it gets >70mpg :-)), the truck gets used to haul loads, go on rough roads, etc.

Quote
However, I'm pretty sure that whatever that pickup can handle a Ranger or Colorado could also take on. I'm too lazy to go get weight information for all those vehicles, but I don't think the two newer choices are markedly heavier than your pickup.

I'm too lazy, too, but from casual observation I'd say those two (and the Toyota Tacoma, which is the successor to my pickup) do tend to run rather larger.  But the point is that I can't see any notable advances in the technology.  Not having to get out and manually lock the hubs for 4WD? 

Even fuel economy: granted that I generally get better than EPA estimates from any vehicle, the 2012 Tacoma (4WD, 4 cyl, 5 spd) is rated at 19 mpg http://www.fueleconomy.gov/feg/PowerSearch.do?action=noform&path=7&year=2012&make=Toyota&model=Tacoma%204WD&srchtyp=ymm  I kept track of my fuel use for well over a year (~7500 miles), and was averaging 26 mpg.  So what the heck is the improved technology doing?

grantmeaname

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Re: Stretch those car payments!
« Reply #8 on: July 27, 2012, 03:55:44 PM »
Weight has skyrocketed due to increased crash standards, so much of the fuel efficiency gains have counteracted that. Weight has also skyrocketed due to luxury features like power windows moving downmarket.