7m Americans 90 days late on car payments...

[Interceptor]

My point, her vehicle was a loaded Expedition some sort of special edition, loaded to max. Stating same vehicle on lot today is going to net you a very high payment.

But 12 years later in normal use what value is there? 72 months at $8888.00
You have a vehicle with 100k miles worth what? Most people don't appreciate vehicles the way people on forums do. Look around d at the stoplights at all the beat up SUVs,

After the newest wears off and wheels get tarlike residue from not cleaning, couple of dings and dents, most people are not excited about $900.00 a month.

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[Nomadic]

Last week I helped daughter buy a new 2018 Fiesta. Cheapest new car I could find. She can't really afford but her SUV gas hog was on its death bed.

Why I was talking with owner of small dealership he was on the phone quoting vehicle monthly payment to a new vehicle purchase which he said was a done deal.

$888.00 a month

The 12 year old SUV we were trading in hoping to get $500 real cash value for, was basically same vehicle this customer was buying brand new.

$880/mo is insane. I guess if you’re loaded it’s not.

I had a ‘14 Fiesta SE manual. Actually pretty damn fun to drive and pretty peppy and of course the mpg was great. And brand new it was like $12500. I had a ‘16 Fiesta SE auto as a rental for a week and that was pretty good too but the manual was quicker and more fun for sure.

 

[Redcruzer]

Gee, I wonder if it's because new car prices are insane?

Not to mention too many people are buying above and beyond their means, as usual....

My first thoughts also. Shamefully never mentioned in the CBS radio news report I heard.

 

[Ghost50]

Aren't a lot of the dealers/finance companies pushing loans out to up to 84 months now? That right there is nuts.

Oh sure it makes your payment look small but you never get out from underneath the negative equity in it really. You're always upside down. Trade that 84mo loan vehicle in and then you have to roll that negative equity into another 84mo loan and the vicious cycle continues.

 

[Angry50]

vehicles are a depreciating asset.. they say it was financed 72 months? most people are not keeping a vehicle 12 years.. if they plan to they will typically do proper maintenance

 

[Strokerswild]

I typically keep my drivers 9-10 years. Since I'm somewhat fanatical about upkeep, I usually get top dollar for them when it's time to upgrade. Not to mention I've been saving the payment every month for at least 5-6 years during that span and thus have that healthy money down on the next one.

I can't fathom having a car loan out past a 60 month term....

 

[ctandc72]

I wonder how many of those are leases. That's what kills me - seeing people essentially trapped into leasing their next car. But prices are ridiculous - I witnessed a new F250 being prepped to be picked up by the owner the other day. It went for $100K.

 

[Zinc03svt]

I wonder how many of those are leases. That's what kills me - seeing people essentially trapped into leasing their next car. But prices are ridiculous - I witnessed a new F250 being prepped to be picked up by the owner the other day. It went for $100K.

Fek...

 

[Strokerswild]

Fek, indeed. And they're all over on the road.

There's a loaded, new Ranger 4-door at the local Ford emporium that I bought my Mustang from, sticker of $46K. I thought they were supposed to be the "affordable" truck. Oh wait, they are, considering a roughly equivalent F150 will run ~$60K. How silly of me.

 

[Angry50]

my father has a 2018 F350. he didnt pay 100k.. lol its super nice.. i dont care for leases either but for someone that says hey i want a new car every 3 years. then i can see it working for some.

 

[Hack]

There are about 330 million adults in the US; 7 million is roughly 2% of adults. I could understand that there are a couple people out of a hundred that either have some emergency come up, over spent, are jerks and just decided not to make the payment, etc.

I'm not super comfortable with my car loan, but I'm set up so I have plenty of equity in the car and I have cheap backup vehicle(s). I also have savings. If I lose my job or something catastrophic happens to me I will be able to sell and get out of the loan without defaulting.

 

[Zooks527]

I wonder how many of those are leases. That's what kills me - seeing people essentially trapped into leasing their next car.

I don't understand some of these leases. One of my partners has 3 active leases: his car, his wife's, and one for their kids. Thinks it's a great deal - doesn't matter how dented they get, he just gets a new one every few years.

 

[Hack]

I don't understand some of these leases. One of my partners has 3 active leases: his car, his wife's and one for their kids. Thinks it's a great deal - doesn't matter how dented they get, he just gets a new one every few years.

I don't like the idea of leasing - I much prefer to either own or at least have equity in the car. What do you do if you're leasing, only have the one car and you lose your job? I guess it means you have to have that much more in savings.

 

[Zooks527]

There are about 330 million adults in the US; 7 million is roughly 2% of adults. I could understand that there are a couple people out of a hundred that either have some emergency come up, over spent, are jerks and just decided not to make the payment, etc.

There are about 330 million total people in the US, not adults. Figure 75% are adults, so the number of adults is, say, 250 million, therefore 3%, but, yeah.

 

[ugstang17]

I don't understand some of these leases. One of my partners has 3 active leases: his car, his wife's and one for their kids. Thinks it's a great deal - doesn't matter how dented they get, he just gets a new one every few years.

^
And he pays for it at lease end as well.

I leased for my wife while I was in field service traveling. I had comfort knowing she had a new car (with warranty) plus she didn't drive a lot of miles so a win-win in that case. You are responsible for damage done beyond what is considered normal wear. Small scratches and a ding here or there is one thing. But dents and scratches all down the side of the car from bicycles etc., and you are paying for the additional depreciation inflicted. Baby stinks up the interior and soils it you're paying, etc. They love to hit the lessee with those fees. And then there is the end of lease clause some tack on. Not at all worth it since I am home every day now (no more travel) and can address issues if they arise. So now she gets used cars just like I get used cars.

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