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  • My sister in law and her babbydaddy have already gone a couple of car cycles with long loans and rolling over negative equity with Nissan. They'll probably have gone through another two or three by the time I give up my 6-year-old, paid-off Golf.

    Not my problem. 🤷♂
  • Your CVT is going to be dead before you pay off your loan.

    Endless money pits.
  • This is the kind of trend that ends up flipping the expense of something (high fat content steaks used to be the more expensive cuts). They'll start charging lower interest for the longer loans.
  • Wait until inflation comes back, then then the longer terms make more sense. Especially if they have low enough interest rates.
  • If you are going to get a loan for that long of a term you may as well consider leasing.
  • We Ate the Necco Wafers: Your CVT is going to be dead before you pay off your loan.

    Endless money pits.


    ?
    Any car made today should have no problem lasting 96 months or 200k miles. It's not 1985 anymore.

    Not that I'd want a loan that long unless the rate was 0%.
  • If it was a lower interest rate on the longer loan then I could see myself doing something like that. My job was moved 100 percent remote. I drive maybe 300 miles a month now.

    Granted if there were no penalties for paying the loan off early, budget for a 5 year, take the longer loan at lower interest and pay off early?
  • dukeblue219: We Ate the Necco Wafers: Your CVT is going to be dead before you pay off your loan.

    Endless money pits.

    ?
    Any car made today should have no problem lasting 96 months or 200k miles. It's not 1985 anymore.

    Not that I'd want a loan that long unless the rate was 0%.


    It is insane how many 0% offers are out there now. Makes me consider buying new, but then there's that whole chunk of value that falls off the second you drive off the lot thing.
  • Christ. Any car loan over 4-5 years is just an awful, awful idea. And cheap, great-condition used cars are literally everywhere. Get something that suits your budget and doesn't put you in hock for most of a decade on a depreciating asset.

    Looking at a 7-year loan to afford the payments is a great indicator that car is out of your farking price range & budget.
  • dukeblue219: We Ate the Necco Wafers: Your CVT is going to be dead before you pay off your loan.

    Endless money pits.

    ?
    Any car made today should have no problem lasting 96 months or 200k miles. It's not 1985 anymore.

    Not that I'd want a loan that long unless the rate was 0%.


    For what it's worth, I just took a peek at Nissan's current financing offers - the Titan has an offer for 0% APR for 84 months!

    Now, I have no interest in getting any truck, much less that particular model, but if you're financing anyway might as well take the zero interest deal for as long as you can.
  • If the rate is 0 or 0.9 as I often see now, the main risk in a long term loan is that it will depreciate under water so if you total the thing you'll get nothing.  I drive about 5,000 miles a year.  0% would be 6-7 years of free money, unless I crash the thing.

    But my 13 year old car is fine. 

    And you don't get a better price paying cash.  That's a myth.  The dealer wants x over invoice and discounts and they don't care if that x comes from you or a financier.  In this case they get paid extra by steering you into financing, so paying cash will definitely not be cheaper.
  • dukeblue219: We Ate the Necco Wafers: Your CVT is going to be dead before you pay off your loan.

    Endless money pits.

    ?
    Any car made today should have no problem lasting 96 months or 200k miles. It's not 1985 anymore.


    Well, this article is about Nissan, and their horrific CVTs might like to make your acquaintance.
  • It looks to me like Nissan and Chrysler have both abandoned making cars that anyone would want to buy.  They seem to be entirely about generating cash via subprime lending.  Besides the Pacifica, the next newest Chrysler/Dodge car for sale is the Charger and it's 10 years old.  The Challenger is 13.  They've just abandoned new product development and have opted for HP and sticker packages.
  • Predatory lending will never end unless we pass laws protecting consumers. Purposely pushing customers into long term loans where they end up with negative equity just seems..........extremely wrong.
  • GregInIndy: Looking at a 7-year loan to afford the payments is a great indicator that car is out of your farking price range & budget.


    This is the proper way to look at it.

    If you are looking at 6, 7, or 8 year terms because you can't afford the car any other way, then you are looking at the wrong car. Especially if you are the average person.

    That said, I had no problem taking a 6yr 0% rate on my wife's car. Yes she lost a chunk of value driving it off the lot but that comes with the territory. Since that time we're about 2 months from pay off and she's only put 54k miles on the car (replaced her tires recently because of their age, not tread which was weird for me since i put 100k in 2 yr on my vehicle). She's also not a person that wants a new vehicle every few years as she will probably drive this one like she did her last one, until we had concerns about it's reliability. On that front, we picked up a bumper to bumper 8yr/80,000 mile extended warranty from the dealership at the time of purchase for practically nothing, so we have another 2 years worry free and no payments. Will probably keep it for another 4-6 after that unless it develops problems.
  • Rapmaster2000: It looks to me like Nissan and Chrysler have both abandoned making cars that anyone would want to buy.  They seem to be entirely about generating cash via subprime lending.  Besides the Pacifica, the next newest Chrysler/Dodge car for sale is the Charger and it's 10 years old.  The Challenger is 13.  They've just abandoned new product development and have opted for HP and sticker packages.


    FCA killed off Dodge, already, and their current lineup is the last one they'll offer.

    The writing was on the wall after the dismal failure of the Viper relaunch, as Dodge was FCA's 'Halo' brand and the Viper was their king.

    But... GT cars only sell if they win, or there's a deep history in the make/model... Dodge didn't have either, and getting your ass kicked by a glorified VW Beetle doesn't help.

    Sooo.... there are only three (3!) GT cars manufactured in America left in IMSA/USGT - Ford GT, Ford Mustang, Chevrolet Corvette. In 2002 there were 19.
  • Rapmaster2000: It looks to me like Nissan and Chrysler have both abandoned making cars that anyone would want to buy.  They seem to be entirely about generating cash via subprime lending.  Besides the Pacifica, the next newest Chrysler/Dodge car for sale is the Charger and it's 10 years old.  The Challenger is 13.  They've just abandoned new product development and have opted for HP and sticker packages.


    This take is a bit unfair to Nissan. Last year it rolled out three redesigns (Versa, Sentra, Rogue) and new Pathfinders (without CVTs) and Z cars are coming shortly.

    As for Chrysler/Dodge, all of FCA's R&D is thrown at Jeep and Ram, because that's where the overall auto market is going. Not redesigning the Durango at the same time as the Grand Cherokee is pretty dumb tho
  • WhiskeySticks: dukeblue219: We Ate the Necco Wafers: Your CVT is going to be dead before you pay off your loan.

    Endless money pits.

    ?
    Any car made today should have no problem lasting 96 months or 200k miles. It's not 1985 anymore.

    Not that I'd want a loan that long unless the rate was 0%.

    It is insane how many 0% offers are out there now. Makes me consider buying new, but then there's that whole chunk of value that falls off the second you drive off the lot thing.


    Have you shopped for a used car lately? When you factor in the better financing you can get in a new one, it can often be cheaper to buy new.
  • Rapmaster2000: It looks to me like Nissan and Chrysler have both abandoned making cars that anyone would want to buy.  They seem to be entirely about generating cash via subprime lending.  Besides the Pacifica, the next newest Chrysler/Dodge car for sale is the Charger and it's 10 years old.  The Challenger is 13.  They've just abandoned new product development and have opted for HP and sticker packages.


    "Cars" are just not selling. Ford stopped making traditional cars a year or so ago, now it's only SUVs, crossovers, trucks etc. In Europe they just announced they are ending the Mondeo, which comes from a long line of Mondeo's, Sierra's and Cortina's that were the biggest selling cars around. I don't blame FCA/Stellantis or whatever they're called now for focusing on the Fiat 500 at one end and various Jeeps at the other. That's what customers are buying.
  • vygramul: This is the kind of trend that ends up flipping the expense of something (high fat content steaks used to be the more expensive cuts). They'll start charging lower interest for the longer loans.


    That doesn't exist.

    If you get a rate that is below market rate, it means that the rate has been bought down by someone. When you buy a car, that person is you:  the interest rate discount is built into the price.
  • runwiz: If you are going to get a loan for that long of a term you may as well consider leasing.


    Leasing isn't viable if you drive a lot.
  • WhiskeySticks: dukeblue219: We Ate the Necco Wafers: Your CVT is going to be dead before you pay off your loan.

    Endless money pits.

    ?
    Any car made today should have no problem lasting 96 months or 200k miles. It's not 1985 anymore.

    Not that I'd want a loan that long unless the rate was 0%.

    It is insane how many 0% offers are out there now. Makes me consider buying new, but then there's that whole chunk of value that falls off the second you drive off the lot thing.


    If you buy a Camry or an Accord, buying used is a ripoff because the used cars are bought by people that are cheap SOBs who don't do the math.
  • EvilEgg: Wait until inflation comes back, then then the longer terms make more sense. Especially if they have low enough interest rates.


    Spoiler alert....
  • Bovine Diarrhea Virus: Predatory lending will never end unless we pass laws protecting consumers. Purposely pushing customers into long term loans where they end up with negative equity just seems..........extremely wrong.


    Great idea. That way, people with bad credit can't get cars.
  • runwiz: If you are going to get a loan for that long of a term you may as well consider leasing.


    Leasing is a no-brainer at that point, IMO, given that most people don't even keep cars 8 years.
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