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Cloaca du jour

.9 % for 84 months...wtf

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I haven't paid much attention to car buying.  I buy used and don't usually finance.   On TV I saw that advertised and about crappped my pants.  Do people actually finance cars that long??!!  Evidently they don't teach finance in school.  Holy crap.

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.9% is like free money. Why not spread that out for as long as you can.

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As cars have gone up in price it seems like the length of term for car loans has grown.  That's a max though.  You can still get a loan for less time if you want.  It's how they can get people who can't really afford the car in to buy it.  Those people worry about the monthly payment and not the total cost.  That said, .9% is a very good interest rate that even those who could afford to pay cash for the car should consider.

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3 minutes ago, Strike said:

As cars have gone up in price it seems like the length of term for car loans has grown.  That's a max though.  You can still get a loan for less time if you want.  It's how they can get people who can't really afford the car in to buy it.  Those people worry about the monthly payment and not the total cost.  That said, .9% is a very good interest rate that even those who could afford to pay cash for the car should consider.

Yep. I think I went 60 months on the suv I bought my wife last month. Could have paid cash, but I’m dumping it into an investment account instead.

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But seriously...very few people keep a car 7yrs.   I'm sure dealerships keep afloat on people who are upside down on loans like that

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2 minutes ago, Cloaca du jour said:

I'm sure you need a 760 fico to even qualify lol.  

Yes, you likely need to be a member of the GC in order to qualify.

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Just now, Cloaca du jour said:

But seriously...very few people keep a car 7yrs.   I'm sure dealerships keep afloat on people who are upside down on loans like that

I follow the rule if you're buying a car you should keep it for 10+ years. Otherwise, you may as well lease. 

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Just now, Cloaca du jour said:

But seriously...very few people keep a car 7yrs.   I'm sure dealerships keep afloat on people who are upside down on loans like that

Those people are idiots.  I have three cars.  Two of them are toys, including the most recent one.  The model years of those vehicles:  2000, 2006 (daily driver), and 2017.

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3 minutes ago, Cloaca du jour said:

I'm sure you need a 760 fico to even qualify lol.  

Doubtful.  Those long loans are designed for people who probably shouldn't be buying that car anyways.

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8 minutes ago, Strike said:

 Those people worry about the monthly payment and not the total cost.  

When you sit down at the table, the salesman's first question is usually "what do you want your payment to be"?

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Just now, Fireballer said:

When you sit down at the table, the salesman's first question is usually "what do you want your payment to be"?

This

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Just now, Fireballer said:

When you sit down at the table, the salesman's first question is usually "what do you want your payment to be"?

Yep, and I always say, I don’t care what the monthly payment is. I care about the price I’m paying for the car and what interest rates/terms are available either through your financial network or my credit union. 

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2 minutes ago, Strike said:

Those people are idiots.  I have three cars.  Two of them are toys, including the most recent one.  The model years of those vehicles:  2000, 2006 (daily driver), and 2017.

1991 2002 2004 2016 here.  I love keeping vehicles.  It helps that I do most of my own work.

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Preach.  Some people are too dumb to consider anything more than 1 month at a time anyway.  You could charge them 50k for a 20k car and if the monthly payment was low enough, they'd bite.

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The American consumer is an idiot.  People rent couches.

Imagine getting your couch repossessed.  

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3 minutes ago, Fireballer said:

When you sit down at the table, the salesman's first question is usually "what do you want your payment to be"?

So true. Always start with a ridiculously low number and know your max.  Walking away is incredibly satisfying. 

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1 minute ago, Gladiators said:

Yep, and I always say, I don’t care what the monthly payment is. I care about the price I’m paying for the car and what interest rates/terms are available either through your financial network or my credit union. 

I always haggle price first.  I tell them "I may pay cash, I may finance.  If the vehicle price changes based on how I pay, I'm leaving".

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I always try to get them to lower the price by giving some terrible financing deal and then pay the car off in the first two weeks.  They always try to say they don't make money on the financing and I'm like, "Yeah, sure you don't, but if you can't do it.  I'll take it for this price anyway."  And then they do the thing where they go talk to their sales manager and say "we can give you 7 years at 5%" or something awful like that.

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2 minutes ago, Fireballer said:

I always haggle price first.  I tell them "I may pay cash, I may finance.  If the vehicle price changes based on how I pay, I'm leaving".

I actually do both at the same time because I think they’re willing to deal a bit more if they think you’re financing. Maybe I’ve been doing it wrong though. :dunno:

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3 minutes ago, nobody said:

I always try to get them to lower the price by giving some terrible financing deal and then pay the car off in the first two weeks. 

Sick.  I like it.

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22 minutes ago, Cdub100 said:

.9% is like free money. Why not spread that out for as long as you can.

That is my thought

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4 minutes ago, Gladiators said:

I actually do both at the same time because I think they’re willing to deal a bit more if they think you’re financing. Maybe I’ve been doing it wrong though. :dunno:

I've never financed through dealer.  You mean they would negotiate lower if you would finance through them?  Good idea.

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Had to give my daughter her lesson in buying a car.  She wanted a Kia soul.  She did good researching and found a used one she liked.  Was on the lot for a few months...and was end of the year.  First offer was 428 a month. 

I told her...don't get sad when I say No and we are going to look elsewhere..it's part of the game.  So we went back and forth..and the price kept dropping.  Added in her Kia sportage..2006 that was losing its master cylinder and has 180k miles.  Kept going...got it down to 312 with a free extended warranty..since it was our 3rd Kia over the years. The coup de grace was insurance.  Those are expensive to insure...not because of safety but because almost always totalled..hard to find parts..my insurance was going to go up 100 a month.  Dropped that bomb on the salesman as we were walking out and he offered 270 a month.  Well under my daughter's budget.

I was pleased overall.  2018 soul sport with 20k miles. Sweet looking car if your 19 lol.  Black with red trim.  I wanted to make sure she had enough money to move out lol.

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2 minutes ago, Fireballer said:

I've never financed through dealer.  You mean they would negotiate lower if you would finance through them?  Good idea.

Yep

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30 minutes ago, nobody said:

I always try to get them to lower the price by giving some terrible financing deal and then pay the car off in the first two weeks. 

That is what I did for my latest. I needed to finance to get their best price, so they got me something like 2% for 36 months. I made sure there was no prepayment penalty and I paid it off 2 weeks later. 

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1 hour ago, Cloaca du jour said:

I'm sure you need a 760 fico to even qualify lol.  

What is the average score? I'm sitting at 812.

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1 minute ago, Utilit99 said:

What is the average score? I'm sitting at 812.

I have no idea...I thought 760 was the min to get best rates.

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1 minute ago, Cloaca du jour said:

I have no idea...I thought 760 was the min to get best rates.

Maybe. I never really checked. 

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I saw a car repo guy today. His t-shirt said “Repo Man. I help people get back on their feet.”

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