At Shaun Del Grande’s car dealerships in the San Francisco Bay Area, the salespeople sometimes find themselves trying to convince shoppers to buy less car, spend more cash, and use more traditional financing.
That might seem like an unusual sales tactic to those familiar with car-dealer stereotypes. But it reflects a change in the way many buy cars: Longer loans — for six, seven, or even eight years, rather than the traditional five — are more common, tempting buyers to take on more debt to buy more expensive vehicles.
Over the last 10 years, the length of the average car loan has risen above 68 months, driven by cheaper financing, lower interest rates, and postrecession demand. Six-year loans are “very common right now,” said Edmunds.com analyst Jessica Caldwell.
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I got 10 years for my Jaguar.
ReplyDeleteI can completely understand this! The prices for UAW built junk is way too high. I mean $40,000 to $60,000 for a pickup, c'mon!!!
ReplyDeleteI was able to recently finance a 76 vega for 60 months
ReplyDelete40 years mortgages are also available for purchasing a house.
ReplyDelete12:15,totally agree.
ReplyDeleteThey are even offering 1.9% interest on some used cars. Who would have ever thought the rates for used cars would be that low?
ReplyDeleteYou are paying as much for a used car as you are a new one now. What a ripoff. With the way new cars are being built nowdays, (defects) you are going to have car payments after your car has died. Build cars like they use to where you can fix your own. I can not even change my transmission fluid myself, have to take to dealership for outrageous charges. Dealerships have so many scams now you do not know what they are doing with your vehicle while it is there. Sorry I just don't trust them.
ReplyDeleteI like how the article stated 5 years used to be traditional. I remember when it was 4 years. Many many years ago, after my wife and I paid off each of our cars, we kept making the payments to ourselves in a separate account. Next new car was bought for cash and everyone after that. It's a great feeling to walk into a car dealership, make a cash deal and have no payments hanging over your head.
ReplyDeleteIts a sign that all is not well with the economy and consumer spending is lower than numbers coming from economy militia in DC. Beware. The market is not healthy regardless of the daily Dow and NASDAQ numbers. China just reduced their interest rates and it is common knowledge, they manipulate their currency like mad. This is germane to the US as the two markets are interdependent.
ReplyDeletewow. I remember when 24 mos. then 36 mos. were the limit.
ReplyDeleteAnother nail in the coffin of freedom. If you are mortgaged to the hilt and have loans up the wazoo and maxed out credit cards....you have basically sold your soul. You have no life...you are living to pay.
ReplyDeleteConsidering there are very few new cars under $130,000 that really, really interest me...
ReplyDeleteI'll be watching for a good, low mileage one in four or five years, when that $130,000 price tag is down to $35,000. Score!!