Ford Wants To Suck More People Into 84-Month Loans

[danpass]

low payment, long term gives the option of overpaying, ie the equivalent of a shorter term, while having the flexibility to make a 'low' payment at times.

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[Ebm]

Holy crap I didn't know that, i can't believe someone would want to make payments for 8 years. If you have to go that long to get the payments where you need them. Then you can't afford the car.

Yeah, I was shocked too. But how else will someone be able to afford their dream truck that stickers for $100k?

The correlation is increased sticker price to increased loan term. I hate to say it, but everything these days is going from a perpetual price to a subscription price. In the future, I wouldn't be surprised if cars were strictly subscription based (like a lease).

 

[Strokerswild]

Yeah, I was shocked too. But how else will someone be able to afford their dream truck that stickers for $100k?

The correlation is increased sticker price to increased loan term. I hate to say it, but everything these days is going from a perpetual price to a subscription price. In the future, I wouldn't be surprised if cars were strictly subscription based (like a lease).

A friend and I were talking about this the other day. Regarding many new vehicles and prices, "Who the hell is buying this stuff?"

It wouldn't surprise me at all if something like a lease or subscription is where things are headed. New vehicles are beyond the reach of many.

 

[Atlas1]

96 month new car loan terms already do exist. Crazy right? That's irresponsible... Even with 0% interest.

Irresponsible is paying cash for the car. 0% for the longest possible term is by far your best option. Why not keep your money as long as possible and have it working for you in the market? It’s the only way to stay ahead of inflation. There is literally no downside to 0%.

 

[04DarkShadowGT]

Irresponsible is paying cash for the car. 0% for the longest possible term is by far your best option. Why not keep your money as long as possible and have it working for you in the market? It’s the only way to stay ahead of inflation. There is literally no downside to 0%.

Yeah except that is almost never what happens in the real world. Sure if you have the cash up front then yes you would be better off investing it. In reality what happens is nearly all new car buyers don‘t have the cash available to pay for it up front and are using long terms to get into cars they really can’t afford.

 

[Atlas1]

Yeah except that is almost never what happens in the real world. Sure if you have the cash up front then yes you would be better off investing it. In reality what happens is nearly all new car buyers don‘t have the cash available to pay for it up front and are using long terms to get into cars they really can’t afford.

I’m sure you are right. Poor people staying poor. But for everyone else it still makes much more sense to take 0% anytime you can get it

 

[Stage_3]

low payment, long term gives the option of overpaying, ie the equivalent of a shorter term, while having the flexibility to make a 'low' payment at times.

Bingo!
You got it my man.

 

[ice445]

Yeah except that is almost never what happens in the real world. Sure if you have the cash up front then yes you would be better off investing it. In reality what happens is nearly all new car buyers don‘t have the cash available to pay for it up front and are using long terms to get into cars they really can’t afford.

Yeah, I see that everywhere and pretty much nobody is investing that extra money per month they saved. I mean, given inflation if you actually KEEP a car for 10 years like a responsible person, it's hard to really fault someone for taking a 0% loan for 84 months to get a car that they like more or is more useful to them. But as we know, the typical new car buyer certainly doesn't do the responsible thing and keep it for its entire useful life. They trade in after 4 or 5 years for the next best thing. Which is fine if you can afford to do it, but if you can you probably aren't taking out 84 month loans.

 

[ICU812]

I find it comical that people are shocked that vehicles that hover at 40-65k are being offered 84 months.
Then you have insurance ,etc. owning a vehicle can be a thousand dollar a month bill, with loan,insurance, service, taxes, tags,etc.
Sure the banks make more on a longer note, but oem's need a way to move units, and a 48 month note on a 40k vehicle at 2.99% is 885.00 a month.
Most people can't afford a 36 /48/60 month autoloan anymore. And buying used hasn't been a bargain since before cash for clunkers, for those that have to be at work not on the side of the road.
A new f-150 is 55-65k for a mid trim truck. that is 2/3rd what my home cost. and no one bats an eye at a 30 YEAR note on that.
Vehicles are not 15-25 k. with a vette being 33k anymore.

 

[ICU812]

Fake it till you make it haha

NAh, Many have watched their grandparents or parents, get to an age to retire only to have their brains memory go south or die before they get to retire, So They are living the best life they can , now before thy are old and forced into a nursing home of 6 feet under.
Maybe the work at home model will stick, and people won't need to have a vehicle that they can count on starting every day and not need to be on a hook or in a shop a bunch.
and can drive a older vehicle that is more likely to have issues, and leave you on the side of the road.
employers, don't take kindly to missed work from vehicle issues. Getting canned because of it , happens all the time.
If My commute was bumper to bumper traffic every day, I'd want a living room on wheels also.
I know many people that 90 minutes to and from work is the norm, one traffic jam from a wreck or road work and that can go past 2 hours daily.
So, people buying loaded up vehicles does not shock me.
not at all.
Best thing that can happen is the work from home model sticks, and gets 65% of the vehicles off the roads daily.
I'm sure the o.e.m.'s fear this more than anything.

 

[Jimmy Dean]

NAh, Many have watched their grandparents or parents, get to an age to retire only to have their brains memory go south or die before they get to retire, So They are living the best life they can , now before thy are old and forced into a nursing home of 6 feet under.
Maybe the work at home model will stick, and people won't need to have a vehicle that they can count on starting every day and not need to be on a hook or in a shop a bunch.
and can drive a older vehicle that is more likely to have issues, and leave you on the side of the road.
employers, don't take kindly to missed work from vehicle issues. Getting canned because of it , happens all the time.
If My commute was bumper to bumper traffic every day, I'd want a living room on wheels also.
I know many people that 90 minutes to and from work is the norm, one traffic jam from a wreck or road work and that can go past 2 hours daily.
So, people buying loaded up vehicles does not shock me.
not at all.
Best thing that can happen is the work from home model sticks, and gets 65% of the vehicles off the roads daily.
I'm sure the o.e.m.'s fear this more than anything.

this is much of it. so many folks I work with are dead within 2 years of retirement. if they ever live to retirement. So why wait?

 

[ICU812]

this is much of it. so many folks I work with are dead within 2 years of retirement. if they ever live to retirement. So why wait?

A buddy I know, wife's dad, retired , he was dead the next week.
Tomorrow might never come.
Covid almost took me out, It IS the reason I pulled the trigger and bought my first new performance ,good weather only fun car. I always talked my self out of doing it. but 2020 showed me, I might never make it to retirement , or be able to enjoy spirited driving if I do make it to retirement.
Sure I have other cars that are older muscle type vehicles, but never bought a new one.
You get to an age where you start to see many you know not make it to that goal line. Saved for that goal line, and never enjoyed the here and now. only lived to work, with the carrot of retirement being sold to them as what to put as #1 investment in themselves, only to never cross that goal line. or pass soon after, or be so sick or worn out that they can't do what they planned on after retirement.
You can't take it with you. it is ok to spend some of it now, and safe some for later.
The last 40 years, people were sold ,save save save for their retirement years. only to have worn themselves out and not be able to enjoy those years. THe stupid youth as many call them, watched this and learned from it. They are not as stupid as most make them out to be.

 

[Jimmy Dean]

A buddy I know, wife's dad, retired , he was dead the next week.
Tomorrow might never come.
Covid almost took me out, It IS the reason I pulled the trigger and bought my first new performance ,good weather only fun car. I always talked my self out of doing it. but 2020 showed me, I might never make it to retirement , or be able to enjoy spirited driving if I do make it to retirement.
Sure I have other cars that are older muscle type vehicles, but never bought a new one.
You get to an age where you start to see many you know not make it to that goal line. Saved for that goal line, and never enjoyed the here and now. only lived to work, with the carrot of retirement being sold to them as what to put as #1 investment in themselves, only to never cross that goal line. or pass soon after, or be so sick or worn out that they can't do what they planned on after retirement.
You can't take it with you. it is ok to spend some of it now, and safe some for later.
The last 40 years, people were sold ,save save save for their retirement years. only to have worn themselves out and not be able to enjoy those years. THe stupid youth as many call them, watched this and learned from it. They are not as stupid as most make them out to be.

I know. I turn 40 next year. I started my mid life crisis this year, ordered a red Mach 1. ford cancelled the order yesterday, so I cannot even mid life crisis correctly I guess.

 

[ICU812]

True enough, although, a base KIA is beyond a 2003 S Class equipment and comfort wise and living close to work is a choice in many cases, unless always chaning jobs, especially in a country where average home occupancy is a few years.

I don't see the same people wearing $1000 pants, $900 shirts and $25 socks in their $750 shoes that they wear for ten hours a day because they are way more comfortable and healthy lacking many of the toxins found in stuff they do wear though.

IMO is a clear projection of desires success and I'm all for manifestation even if it's a 10 year car loan haha.

If 2008 showed us anything, it showed that you might want to move to get a new job, but could not because your place you called home was not worth what you owed on it. Unlike an auto you can't roll the - into the new home loan.
Many were stuck.
Most folks I know have lived in the same home for decades, People seem to forget what the word AVERAGE, means.
most don't move every 2-5 years. Home flippers also skewed that average.
I am not one to buy a new vehicle, I am fine with a 15-20 year old one, but I understand why many do it, that maybe should not.
Having your wife and kids stuck on side of the road is a big one, used vehicles with 100k plus on them are still stupid money, even before covid and /or the chip issue.
For the last 20 years the wife got the newer vehicle, as her safety and the kids was worth it, than a call that the 20y/o vehicle crapped out and I'm 2 hours or more away.
This year is the first in a long time that I bought myself a new vehicle, a fun one to boot.
I'll be paid off in under 24 months. not everyone can do that.
A 2004 truck was 28k crew cab, v8, well equiped , today that same optioned truck is 59-65k or more.
The reg. joes pay has not jumped like vehicle prices have.
I mean, I walked away from buing a new 2002 ws6 manual transmission t/a because it was 31k.
now pony cars are 50k for the v8 loaded ones.

 

[Strokerswild]

I know. I turn 40 next year. I started my mid life crisis this year, ordered a red Mach 1. ford cancelled the order yesterday, so I cannot even mid life crisis correctly I guess.

You're still 10 years from mid life crisis territory, plenty of time.

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