Just Keep Dancing: Introducing The 97-Month Auto Loan
While many of us have been shouting about this from the rooftops for years now, with each passing day it becomes more clear what a terrifyingly gigantic powder keg we have created. There is no debate that this will end in a compete financial holocaust, the only question is when and how. As time progresses, the practices and desperation of the status quo to keep the sheeple in debt and consuming [5]is getting increasingly insane. We learn from the Wall Street Journal that:
The average price of a new car is now $31,000, up $3,000 in the past four years. But at the same time, the average monthly car payment edged down, to $460 from $465—the result of longer loan terms and lower interest rates.
In the final quarter of 2012, the average term of a new car note stretched out to 65 months, the longest ever, according to Experian Information Solutions Inc. Experian said that 17% of all new car loans in the past quarter were between 73 and 84 months and there were even a few as long as 97 months. Four years ago, only 11% of loans fell into this category.
Such long term loans can present consumers and lenders with heightened risk. With a six- or seven-year loan, it takes car-buyers longer to reach the point where they owe less on the car than it is worth. Having “negative equity” or being “upside down” in a car makes it harder to trade or sell the vehicle if the owner can’t make payments.
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6 comments:
This is the Democratic way of doing business. NO COMMON SENSE WHEN THEY BORROW.
I have only bought one car in my life on credit and that was because they offered me 0% 4 year term...basically free money. Paid cash for every other vehicle and I am not wealthy. I sacrificed early on and drove a beater for 5 years while putting money in the bank like a car payment and after that I had the cash to buy a car. It is a very simple plan but few seem to follow it.
yeah 3:22, I'm sure the numbers were driven up because only dems agreed to these types of loans. I'm sure you have the data to back that statement up too.
4:27 It doesn't take a rocket scientist to know that the value of the car will not sustain what is owed on it. Even at a 4% interest rate, you buy the car and drive it off the lot it is now a used auto. You have just lost $5000 in value. You must be another ignorant Democrat.
You must be another ignorant Democrat.
April 11, 2013 at 4:48 PM
Like they say, it takes one to know one.
Pit your enemies against themselves. Republicans blaming Democrats and Democrats blaming Republicans.Both are at fault for the status of America. There is no separate parties anymore, it's just a two headed serpent working for self interest and special interest money. Once everybody understands this and works together to change things, it will only get better.
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