Would you take out an 8 year car loan for a car you cannot afford?

[qtrracer]

FWIW, we're about 16 months from paying off the 2016's zero interest Ford loan (100% financed - none of our money was used). But the payment is getting old; very old. Believe me when I say we've considered paying this thing off early. But my financial sense knows that is not the way to go because the money earns more invested. Notwithstanding, we're tired of paying on this thing. 5 years is too long; 8 years, even at zero interest, would be like a death sentence. Funny how a 30-year mortgage doesn't seem to have the same "boat anchor" sort of feeling.

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[Bikeman315]

FWIW, we're about 16 months from paying off the 2016's zero interest Ford loan (100% financed - none of our money was used). But the payment is getting old; very old. Believe me when I say we've considered paying this thing off early. But my financial sense knows that is not the way to go because the money earns more invested. Notwithstanding, we're tired of paying on this thing. 5 years is too long; 8 years, even at zero interest, would be like a death sentence. Funny how a 30-year mortgage doesn't seem to have the same "boat anchor" sort of feeling.

Interesting thought. I went 0%/72 on my 19' GT/CS. Why not, it's free money. I wonder how I"m going to feel a couple of years down the road.

 

[qtrracer]

Interesting thought. I went 0%/72 on my 19' GT/CS. Why not, it's free money. I wonder how I"m going to feel a couple of years down the road.

We didn't start getting tired of this until recently. We're just done but stay with it given the stock market returns. We've also got another car project that uses some resources. It would be nice to not have to budget both.

 

[vernonator]

Interesting thought. I went 0%/72 on my 19' GT/CS. Why not, it's free money. I wonder how I"m going to feel a couple of years down the road.

If its your only loan then you are good. The wife just bought a new SUV (replaced the Explorer Sport with a Jaguar)

Interesting thought. I went 0%/72 on my 19' GT/CS. Why not, it's free money. I wonder how I"m going to feel a couple of years down the road.

There is your point...its FREE money. Even if you have the cash to pay it off why? Put that cash in a frikin savings account getting 1% interest and pay the loan out of there...you will be ahead, its really simple math. Pay your highest interest loans first. The wife just replaced our Explorer Sport with a Jaguar (broke my all Ford rule). Rather than put 10k down on the Jag (rate was 1.9) I paid of the Mustang that was at 2.4%. Its not rocket science...look at the interest you will be paying on a loan and pay off the one that is highest.

 

[Big Boss]

Absolutely not

5 years is the most I am comfortable going....maybe 6 if there is 0 for 72 available

 

[Nuryalom]

Just stumbled upon this thread about taking out an 8-year car loan for a car you can't afford. Gotta say I wouldn't recommend it. Life is unpredictable, and who knows what could happen to you or your car in 8 years? I totally feel your pain with the never-ending payments on your current car. It can get seriously old, right? But personally, I prefer not to stretch it too far. I'm comfortable with a 5-year loan and maybe pushing it to 6 if there's an amazing 0% interest deal for 72 months. By the way, while browsing online, I came across a Mortgage Broker in Gilberdyke who might have some useful insights on mortgages and loans. They could be worth checking out if you're in need of financial advice. Just thought I'd share the info.

 

[RagmopInKona]

affordability is of course a bit subjective. General rule of thumb is...is the car payment 10% or less than your gross income? If so, then its "affordable". This is why 6, 7 and even 8 year car loans are becoming more common. People are buying cars they cannot afford in any other way, other than to push out the loan term to a crazy long time, while paying thousands more over the life of the loan (notice I didn't say life of the car) than they otherwise would.

Wrong on so many levels.
Auto loans are 7-8 years because the industry doesn't want 80% of their buyers and 95% of the general public to realize that vehicle prices are out of hand.
Sir, we can get you into that vehicle for 559.87 a month. Forget that the sticker has a msrp of 48799.65. the long loan made the vehicle affordable to a large group of buyers.
This IS why the sale's person will ask you what payment you looking to be at?
If auto loans were limited to 48/60 months
Do you think any brand would be building their bread and butter model and pricing them at 45k and up?
Would I do it, no. but many will.
Many could afford the payments till 2021/2022 when their rent doubled.
Many are short sighted.
Many posting, bought a home they can't afford or don't need to be as large as it is, but did anyways knowing full well that if they get laid off/ fire they are screwed.
This is nothing new, keeping up with the Jone's. is the American idiot's way .
I mean come on, we are on a site than many saw no problem with paying 5/10/15/20/30k over sticker for a car, we really should not be tossing darts at others.

 

[Bikeman315]

Wrong on so many levels.
Auto loans are 7-8 years because the industry doesn't want 80% of their buyers and 95% of the general public to realize that vehicle prices are out of hand.
Sir, we can get you into that vehicle for 559.87 a month. Forget that the sticker has a msrp of 48799.65. the long loan made the vehicle affordable to a large group of buyers.
This IS why the sale's person will ask you what payment you looking to be at?
If auto loans were limited to 48/60 months
Do you think any brand would be building their bread and butter model and pricing them at 45k and up?
Would I do it, no. but many will.
Many could afford the payments till 2021/2022 when their rent doubled.
Many are short sighted.
Many posting, bought a home they can't afford or don't need to be as large as it is, but did anyways knowing full well that if they get laid off/ fire they are screwed.
This is nothing new, keeping up with the Jone's. is the American idiot's way .
I mean come on, we are on a site than many saw no problem with paying 5/10/15/20/30k over sticker for a car, we really should not be tossing darts at others.

Just FYI, you are responding to a three year old post from a forum member that hasn’t posted in three years. Interestingly this thread started at the very beginning of Covid. It is even more meaningful now with the steep price escalation over the past three plus years.

 

[RagmopInKona]

Just FYI, you are responding to a three year old post from a forum member that hasn’t posted in three years. Interestingly this thread started at the very beginning of Covid. It is even more meaningful now with the steep price escalation over the past three plus years.

It was on the top thread list above the forum list.. I didn't check the age of it..lol

 

[Balr14]

As has been mentioned, cost of ownership is more important than the purchase price. I often buy used cars, 2 - 4 years old, because they cost over $100k new and I can't afford that. There have been a number of cars I could afford to buy, but have had to pass on due to potential costs of maintenance and repairs.

 

[Biggus Dickus]

Interesting thought. I went 0%/72 on my 19' GT/CS. Why not, it's free money. I wonder how I"m going to feel a couple of years down the road.

And if anything, you are making money considering how interest rates and inflation have risen since you purchased the car.

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