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

[wanted33]

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.

And therein lies the problem. Now I'm the first to say that a person is responsible for their choices, and they must accept the consequences. But, these finance companies are pushing these loans on folks that (lets face it) aren't the brightest bubs in the box. So, there is is enough blame to go around here. I'm just thankful that I had a father that taught me the value of a dollar, and that I should never get into more debt than I could handle.

It looks to me like the "Repo" man is going to be quite busy.

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[ctandc72]

I have a friend who worked for a BMW dealership for several years. He couldn't believe how many people came in - regardless of income level - and all they talked about when it came to price was how much a month they could pay.

 

[Anthony 05 GT]

Ok girls, back on topic

 

[Interceptor]

Back on topic: I think I will get behind on my car payments since everyone else is doing it. Need to keep up with what's happening.

Then I will contact one of the liberal's running for president and tell them capitalist are ruining my life because I can't make car payments. That since they are promoting free college education, forgiveness of student loans, and basic income for everyone.

Maybe that can include forgiveness of car loans.

That is what this story is about, expect many more during the next 12 month's. The news cycle will be doing its best to hide how well our country is doing by stories of all the poor Americans can't even afford their cars, homes etc....

If if this story is true (most news now are misleading or made up) it is a very small percentage. They maybe including one late payment bla bla bla. They played the same game over the border wall cost. The amount needed and ask to secure our border was a drop in a 5 gallon bucket.

There back on topic

 

[bluebeastsrt]

I think he wants a date with you but can't figure out the right way to ask

Naw. But if I offer my opinion on men dating men. One guy will come in. And go. I date men. What's wrong with that? And off we go again.

 

[Kong76]

I am not 90 days late, but I am 90 days away from owning my 16' outright. Hella-lujah!! Debt free at 43.

 

[MyFirst5.0]

i wonder how much these car payments are? mine is only $300, i can't fathom paying over $450 a month for a car, but im sure most payments are higher than that

 

[IronG]

Naw. But if I offer my opinion on men dating men. One guy will come in. And go. I date men. What's wrong with that? And off we go again.

You could, but then you would be off-topic and you know how some here react to that. People just don't get it I guess and need to be told how they are wrong.

 

[bluebeastsrt]

You could, but then you would be off-topic and you know how some here react to that. People just don't get it I guess and need to be told how they are wrong.

You brought up the asking a guy out thing. Not me. But that probably wasn’t off topic. That was just you trying to be incredibly witty by making a homosexual joke. Right? Anyway....back to on topic.

 

[IronG]

You brought up the asking a guy out thing. Not me. But that probably wasn’t off topic. That was just you trying to be incredibly witty by making a homosexual joke. Right? Anyway....back to on topic.

Reading comp is not your strong suit I see. You completely missed the point LOL.

Back on topic.....

 

[320guy]

i wonder how much these car payments are? mine is only $300, i can't fathom paying over $450 a month for a car, but im sure most payments are higher than that

It all depends how much money the person makes monthly. But if the car payment will leave little wiggle room for life, then it definitely is a bad decision.

 

[Zelek]

Much easier to repo a car than foreclose on a house. If you're working on a monthly payment you can afford, you're already in trouble.

 

[WhiteyDog]

D*mn, I couldn't imagine being 90 days late on anything, especially a car payment. Paid mine off 6 months ago.

 

[Jetnoise]

While I agree there is a car loan bubble, it's not exactly gonna risk bankrupting the country like the housing bubble

The car loan issues is just one of many indicators.
Check out our national dept....
Check out the student loan situation
Check out the military benefits owed that yet have yet to be realized....
Wait...wait....the baby boomers heading to retirement....
These make the housing bubble look like a walk in the park.

 

[Bull Run]

We bought 2 couches at Rooms to Go and took their offer of 48 mos. interest free. Was gonna pay cash, but why??

Same with cars if you have good credit. Only a fool would pay cash.

I'm one of the "fools" that pays cash. There is a reason why dealerships and stores offer 0% finance and it's not for your benefit. I'm not saying your thoughts are wrong since this is one of those situations where there may be more than one right answer. I think the article below can explain it better than I can but here are my main points have no debt:

1. Used cars don't come with 0% financing (even if there is, it's not common), probably because they don't make as much money off of them.
2. Price negotiation is much easier when you can just focus on the OTD pricing, and take the interest rate, monthly payment, and downpayment out of the equation.
3. No need for any gap insurance since you'll never be upside down.
4. Having the title on hand makes car selling easier.
5. Simplifies life by having fewer bills to track.
6. Increases the effective duration of the emergency fund. I left my emergency fund level untouched and it's effectiveness went from 6 months to about 2 years simply by reducing the number of bills to pay.
7. Increases I what a call the monthly "discretionary" fund, which is money left over after accounting for the bills, taxes, and "paying myself first" (retirement and 529 accounts contribution, and 10% toward taxable investments). This allowed me to have guilt funds for fun stuff without having to budget. Thing like donations, gifts, family vacations, car parts, and other hobbies come out of the discretionary fund and I used whatever's leftover to pay off the mortgage early (which greatly increased monthly discretionary fund even more). Now the leftovers go to taxable investment accounts.
8. I fully understand that stocks earn more than interest paid on low-interest loans and therefore, the vast majority of my investments are in stocks or stock funds. However, the earnings gap decreases when you factor in taxes on gains and the fact that the interest on loans is paid with after-tax money. Also, stock market gains are not steady and monthly loan payment amounts don't go down when the market's down. I was young and only started investing for a few years when the crash of 2008 occurred. The total amount that I lost was relatively small because I didn't have a large account, but losing 30-40% was still unsettling. I saw older friends and family members go into foreclosure and bankruptcy, and also relationships being ruined. I held on and stayed the course but many retirees that didn't rebalance their accounts during the bull market ended up hurting the most since they had to sell while the market was down for their living expenses.
9. My mortgage rate was 3.15%. Given my marginal tax rate, an investment needs to earn 4.7% (pre-tax) to break even and I don't know of any investments can guaranty that kind of return.
10. On the flip side, I'd say the money saved on interest is similar to learnings from bonds, so this allows me to invest more heavily on the stock side with an equivalent risk of someone with a larger amount of bonds and cash in their portfolio.
11. None of the books and research articles on "average" millionaires showed using low or 0% car or furniture loans as a pathway to building wealth. They usually have a distaste for debt with an exception for loans for investment properties, but those usually appreciate in value and generate income, unlike cars or furniture

https://www.whitecoatinvestor.com/why-i-dont-0-financing-deals/

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