Cloaca du jour 2,064 Posted January 24, 2021 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. Share this post Link to post Share on other sites
Cdub100 3,384 Posted January 24, 2021 .9% is like free money. Why not spread that out for as long as you can. Share this post Link to post Share on other sites
Strike 3,980 Posted January 24, 2021 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. Share this post Link to post Share on other sites
Cloaca du jour 2,064 Posted January 24, 2021 I'm sure you need a 760 fico to even qualify lol. Share this post Link to post Share on other sites
Gladiators 1,904 Posted January 24, 2021 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. Share this post Link to post Share on other sites
Cloaca du jour 2,064 Posted January 24, 2021 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 Share this post Link to post Share on other sites
Gladiators 1,904 Posted January 24, 2021 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. Share this post Link to post Share on other sites
Cdub100 3,384 Posted January 24, 2021 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. Share this post Link to post Share on other sites
Strike 3,980 Posted January 24, 2021 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. Share this post Link to post Share on other sites
Strike 3,980 Posted January 24, 2021 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. Share this post Link to post Share on other sites
Fireballer 2,384 Posted January 24, 2021 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"? Share this post Link to post Share on other sites
Cloaca du jour 2,064 Posted January 24, 2021 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 Share this post Link to post Share on other sites
Gladiators 1,904 Posted January 24, 2021 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. Share this post Link to post Share on other sites
Fireballer 2,384 Posted January 24, 2021 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. Share this post Link to post Share on other sites
nobody 2,044 Posted January 24, 2021 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. 1 Share this post Link to post Share on other sites
fandandy 3,311 Posted January 24, 2021 The American consumer is an idiot. People rent couches. Imagine getting your couch repossessed. Share this post Link to post Share on other sites
TimmySmith 2,782 Posted January 24, 2021 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. Share this post Link to post Share on other sites
Fireballer 2,384 Posted January 24, 2021 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". Share this post Link to post Share on other sites
nobody 2,044 Posted January 24, 2021 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. Share this post Link to post Share on other sites
Gladiators 1,904 Posted January 24, 2021 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. Share this post Link to post Share on other sites
Fireballer 2,384 Posted January 24, 2021 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. Share this post Link to post Share on other sites
bandrus1 413 Posted January 24, 2021 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 Share this post Link to post Share on other sites
Fireballer 2,384 Posted January 24, 2021 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. I've never financed through dealer. You mean they would negotiate lower if you would finance through them? Good idea. Share this post Link to post Share on other sites
bandrus1 413 Posted January 24, 2021 18 minutes ago, Cloaca du jour said: I'm sure you need a 760 fico to even qualify lol. 760 is good? Share this post Link to post Share on other sites
Cloaca du jour 2,064 Posted January 24, 2021 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. Share this post Link to post Share on other sites
Gladiators 1,904 Posted January 24, 2021 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 Share this post Link to post Share on other sites
Patriotsfatboy1 1,432 Posted January 24, 2021 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. Share this post Link to post Share on other sites
Utilit99 4,099 Posted January 24, 2021 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. Share this post Link to post Share on other sites
Cloaca du jour 2,064 Posted January 24, 2021 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. Share this post Link to post Share on other sites
Patriotsfatboy1 1,432 Posted January 24, 2021 4 minutes ago, Utilit99 said: What is the average score? I'm sitting at 812. That was your SAT’s. 1 Share this post Link to post Share on other sites
Utilit99 4,099 Posted January 24, 2021 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. Share this post Link to post Share on other sites
Utilit99 4,099 Posted January 24, 2021 Just now, Patriotsfatboy1 said: That was your SAT’s. Never took SATs. Share this post Link to post Share on other sites
frank 2,147 Posted January 25, 2021 I saw a car repo guy today. His t-shirt said “Repo Man. I help people get back on their feet.” Share this post Link to post Share on other sites