Something big is coming....

[Dobalovr]

Are you serious or joking.
Have the sub-prime lenders become that greedy?
How many customers are taking the 84 month note?
When I first got my license, 36 months was "sub-prime".

75% of our new car financing is at 96 month terms now Stan. People want $70000 vehicles with a $300 biweekly payment. We would go 108 months if it was an option. What has now transpired is that these long term customers come back at 3-4 years to trade and they are $15/$20/$30k upside down so we roll it into another new car and the cycle continues until the negative equity becomes so bad that they are stuck financing a 5 year old whatever with zero warranty and huge payments. The reckoning is coming soon I fear.

 

[monaco75]

What in gods green earth would make you want to do that? 7 years locked into a payment? All for what? To keep up with the Joneses?

I was so happy after I payed of my 3 year truck payment on my ‘03. I vowed never again. I’ll stick to my old beaters. Can set one of em on fire in my front yard if I want, and nobody can say a thing about it lol

 

[70bigblockdodge]

What in gods green earth would make you want to do that? 7 years locked into a payment? All for what? To keep up with the Joneses?

I was so happy after I payed of my 3 year truck payment on my ‘03. I vowed never again. I’ll stick to my old beaters. Can set one of em on fire in my front yard if I want, and nobody can say a thing about it lol

Yeah, buddy on the eighth year of payments in the rust belt the door starts flapping because the seam is rotted. In the ninth year it needs new hub bearings on at least two corners because the salt and cold has perished the grease. By the 10th year (paid off by 2 years) your ready for your 4th set of rotors and the 2nd set of brake pads.
You did well taking on the Hurricanes and Florida drivers, beats the relentless snow and salt.

 

[70NEWYORKER]

Why would anyone want a payment period longer than the warranty??? The warranty is a guaranty of suitability for a purpose (running/driving form of transport). That said, if I'm paying someone for it someone best make sure the damn thing works....

 

[commando1]

75% of our new car financing is at 96 month terms now Stan. People want $70000 vehicles with a $300 biweekly payment

People have no concept of money or debt. And they are allowed to vote.

 

[Fury440]

Pretty soon car financing will shift towards mortgage contracts in which the annual interest rate floats with the market. As a lender I'd be more than a little concerned writing 8 and 9 contracts with interest rates locked at today's low rates. I expect once our respective fearless leaders finish with our economies, inflation will take off and drag interest rates way up in an attempt to slow it down. Remember the early 80's when prime rates approached 20%, those days might return.

 

[1Fury1]

75% of our new car financing is at 96 month terms now Stan. People want $70000 vehicles with a $300 biweekly payment. We would go 108 months if it was an option. What has now transpired is that these long term customers come back at 3-4 years to trade and they are $15/$20/$30k upside down so we roll it into another new car and the cycle continues until the negative equity becomes so bad that they are stuck financing a 5 year old whatever with zero warranty and huge payments. The reckoning is coming soon I fear.

So what creates this phenomenon whereby people have no concept of the value of money? Is it the cashless society we live in? Low finance rates? Corporate greed? Corporate survival? Maybe the customer base resigned to the fact that they will always be making a car payment so let’s drive the nicest vehicle we can with the lowest payments? It’s essentially like a lease with a huge residual owing at the end. I tried to talk my daughter and her hub into a near new Chrysler mini van for (they call it a vangina) for $20k but they had to go get a brand new 60k chebby traverse with 84 months payments. But dad it’s 0.9% financing and a 60 month warranty how can we go wrong? Aarrghh.

 

[commando1]

So what creates this phenomenon whereby people have no concept of the value of money? Is it the cashless society we live in? Low finance rates? Corporate greed? Corporate survival? Maybe the customer base resigned to the fact that they will always be making a car payment so let’s drive the nicest vehicle we can with the lowest payments? It’s essentially like a lease with a huge residual owing at the end. I tried to talk my daughter and her hub into a near new Chrysler mini van for (they call it a vangina) for $20k but they had to go get a brand new 60k chebby traverse with 84 months payments. But dad it’s 0.9% financing and a 60 month warranty how can we go wrong? Aarrghh.

 

[Dobalovr]

People’s income has not kept pace with inflation and the keeping up with the Joneses mentality is a factor in what the market is doing right now. Low interest has fueled a buying frenzy in both homes and vehicles for the last 15 years. I can’t believe that a 2019 Ram 1500 full load crew cab is now over $87000CDN!! I didn’t pay that much for my first house! Where it will all end I cannot say but a correction is coming mark my words and it wont be good.

 

[barnfind]

Went looking for a replacement pickup when I got my buck this year. I was very shocked with new pickup prices, yes, I've paid less for an opportunity fixer upper house around here. I ended up with a used pickup of same make and model as I had, saved myself the new car payment. I don't get how people can make those types of payments. New pickups around here were 45-100k (all manufacturers). When did pickups become so expensive?

 

[Dobalovr]

This is the future...car ownership will become a thing of the past

Auto industry looks to future beyond car ownership with sharing, subscriptions

 

[1Fury1]

This is the future...car ownership will become a thing of the past

Auto industry looks to future beyond car ownership with sharing, subscriptions

Hard for the older generation to accept but I can see it happening. Pride of ownership becomes a thing of the past.

 

[Dobalovr]

Went looking for a replacement pickup when I got my buck this year. I was very shocked with new pickup prices, yes, I've paid less for an opportunity fixer upper house around here. I ended up with a used pickup of same make and model as I had, saved myself the new car payment. I don't get how people can make those types of payments. New pickups around here were 45-100k (all manufacturers). When did pickups become so expensive?

When it became popular to own one and when the govmint decided they needed to get 30mpg and be safer than a Volvo...

 

[78Brougham]

When did pickups become so expensive?

When the manufacturers realized they had a bunch of suckers on the line. If people would stop paying those kinds of prices, the process would come down.
The yuppies have ruined it. Who needs all that nonsense in a pickup? Full leather, backup cameras, encroachment crap, lane change warning systems. Bla bla bla...
Poor working stiffs are the ones taking the hit. Go and try to buy simple work truck, vinyl seats and floor. Five speed etc. Something to use for real work. Forget about it.

 

[commando1]

A $70k Penis Enhancer, 96 month notes, and not a single penny in reserve if they lose their job.

 

[cantflip]

A $70k Penis Enhancer, 96 month notes, and not a single penny in reserve if the lose their job.

I agree with all... we have several well equipped trucks at work I would never buy... yet somehow, when sitting in the leather, leaning on the console, playing with the do-dads... my penis gets bigger...

 

[DocMcNeedy]

 

[detmatt]

We’re being taken for suckers. I would never finance anything that depreciates faster than the principle on the loan.

 

[1Fury1]

I agree with all... we have several well equipped trucks at work I would never buy... yet somehow, when sitting in the leather, leaning on the console, playing with the do-dads... my penis gets bigger...

A friend was over one day recently and we were looking at my new ram, which he has the same thing only with a short box. He says to me, maybe the long box is needed to compensate for what’s lacking in another area. I said to him, or maybe when it comes to that area some guys just need a longer box.

 

[70bigblockdodge]

). When did pickups become so expensive

When the second asshat walked in looking for a loaded pu to get 2 bags of much in the spring and 2 bags of weed and feed in the fall.