Monthly (weekly) article on car pricing and people being bad with money

508 Views | 10 Replies | Last: 52 min ago by EMY92
Dr. Doctor
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6:46a
AG
Car loan terms stretch as vehicle prices remain high

The last paragraph in this article is crazy.

" About 40.7% of new-vehicle purchases involving negative equity are now financed with 84-month loans, according to Edmunds data."

rollin', rollin', rolling. Keep that (negative) equity rollin'....

~egon
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MouthBQ98
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8:07a
AG
That's utterly idiotic. I smile to myself every day. I drive old high mileage but reliable beaters that seem to be in the shop only a tiny fraction of the time all these new rides are, and I get where I need to go without any car payments. I like vehicles too, but there's no value proposition in new vehicles right now. There just is not. The market is badly skewed and it is very annoying because it results in manufacturers not offering any good value choices anymore.
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AustinCountyAg
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9:31a
While vehicle prices have gotten absolutely stupid high I think the biggest problem, which is danced around in the article is the fact people keep rolling negative equity on simply keeping up with jones'. It's one thing to buy an $85k vehicle, but it's another when you trade it in simply for getting something newer. Very few people these days keep vehicles for more than 5 years. Something like 65% of new car buys trade them in under 6 years old.


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Tone2002
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9:33a
A tale that is old as time…
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HollywoodBQ
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In reply to Dr. Doctor • 9:56a
AG
This negative equity business is why I enjoy watching Benzs and Bowties so much.
https://texags.com/forums/46/topics/3582720/replies

The more "negative" the more expensive the Benz.

Side note - you can spend over $200k on a G-Wagen these days.
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Teslag
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In reply to AustinCountyAg • 10:25a
AG
AustinCountyAg said:
While vehicle prices have gotten absolutely stupid high I think the biggest problem, which is danced around in the article is the fact people keep rolling negative equity on simply keeping up with jones'. It's one thing to buy an $85k vehicle, but it's another when you trade it in simply for getting something newer. Very few people these days keep vehicles for more than 5 years. Something like 65% of new car buys trade them in under 6 years old.




I refuse to keep anything more than 3 years. But I always also pay cash or put at least 50% down.
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maverick2076
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In reply to Teslag • 10:45a
Serious question: have you considered leasing? Unless you are a high mileage driver, it's literally built for your use case
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TexAg2001
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11:05a
AG
Many years ago, my wife and I agreed to the following stipulations:
  • No more than 1 car payment at a time
  • Monthly payment cannot exceed $600
  • Payment term cannot exceed 60 months, but prefer 48
We've successfully adhered to this, but it's getting much harder with prices skyrocketing. Luckily, we tend to purchase vehicles with high reliability (Toyota/Lexus), so we can continue to drive them for as long as necessary to have a high enough down payment saved to meet our requirements.
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BigPete3281
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11:30a
-A 2015 Toyota truck that'll I drive maybe 5k/year and I'll get another 150k out of.
-A 2015 Subi that is just now approaching 100k.
-A 2016 Subi for the daughter under 85k.

All paid for. All shall be driven for years.

I've never felt less dumb. I'm not a rich man, but I have no debt. I will never understand people today. It's insane.
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AggieGunslinger
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In reply to HollywoodBQ • 11:50a
AG
HollywoodBQ said:
This negative equity business is why I enjoy watching Benzs and Bowties so much.
https://texags.com/forums/46/topics/3582720/replies

The more "negative" the more expensive the Benz.

Side note - you can spend over $200k on a G-Wagen these days.

One of my favorite IG follows.
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EMY92
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12:56p
AG
The longest I've financed is 4 years, I paid it off early. My other purchases have been 3 years or cash. I can't imagine 84 month car notes.
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