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

Dr. Doctor

Joined: Jul 23, 2008

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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

Joined: Aug 4, 2013

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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.

Tone2002

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9:33a

A tale that is old as time…

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HollywoodBQ

Joined: Oct 12, 2005

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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.

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.