84-Month Auto Loans Are Becoming More Common Because People Can't Stop Buying Trucks

[spencer60]

I kind of get the 'rent, not buy' idea of the millenials. After all, they had one of the biggest economic disruptions in modern history happen to them when the housing market tanked. I'm sure many of them saw their parents simply walk away from what should have been a solid and stable home. That has to leave a mark.

The biggest thing I see about millenials is that they would rather pay a little more than be tied down and lose a lot if things change. If you rent, and someone offers you a job across the country, you can just pickup and move. If you owned a house you were in trouble a few years back, and even today have a much more complex transaction to deal with.

Once millenials get to a certain point in their lives, with a steady job, and more important to stability, kids, I'm sure you will see the preference for rentals start to fade.

 

[Kman]

No car payments at the moment. My attitude has shifted a little. I can't see spending $50,000-$70,000 on a truck if it's not making you money. I will be buying another f450 diesel, crew cab 4x4 this year at some point, but I'm waiting on the right used deal and it will be a money maker. I will sit and wait as long as it takes to find that deal.

 

[GeauxLSU]

We haven't had a car payment for around 6 or 8 years. I remember when we went in looking for newer van about 10 years ago. We went a lot of places. Nissan was the worse. They offered a 78 month loan which l had never heard of. The payments were over 600 a month. Needles to say we didn't buy it. He asked what we were looking for l said 3 years max on a loan. We ended up getting a Honda and love it. We have a 92 f150 and a 05 Honda odysse. They're not pretty but they are paid for and nothing is more beautiful than that. I will never buy a new car. They're to damn expensive and l can't justify paying half of what l did for my house on something that will break down. Especially these days new cars seem to break down constantly. And if you don't have the computer program to hook it to you're not fixing it. They put way to much technology in this stuff and it tears up way to often. Then they marry you to it for at least 7 years. F that

My brother in law is a finance major. He is in the millennial age. He was telling us he'll never buy a house and that it is stupid to spend that much money on something that you will have to pay to maintain. I was astounded. I get not wanting a 30 mortgage but unless you living somewhere for free it's damn near impossible to save up that kind of money. He is now currently paying about 150 dollars a month more a month for his 1 bedroom apartment than l pay for my house that l will one day own. Student loan debts he has he said he'll probably never be able to pay off. He has the minimum payment written into his budget which takes 35 years (if l remember correctly) to pay it off like that. There is a different mindset coming along with out a doubt. And it's scary.

I have no problems with loans but you have to use your head. When we bought our house 18 years ago the bank approved us for 250000 loan. Our real estate agent kept taking us to house close to that range. I told her l wouldn't spend more than 100000 on a house. She couldn't believe it. She was pushy about it. We parted ways. I told her l want to be able to go out and have fun and have a house. If l paid 250000 for a house l would be house poor. I'm not sure if l could of even had power or gas if l bought a house that cost that much. Lenders make money on what you think you can pay. That doesn't mean you need to use all of it.

You're brother in law may have an education, but he doesn't seem to be very bright, no offense intended.
Or maybe they've changed math since I got my finance degree?
In MOST situations, a house is an APPRECIATING asset in the long run, and you (currently) get to deduct the interest you pay (assuming you itemize). So for first time home buyers, there are plenty of tangible financial reasons to purchase vs rent if you have any realistic expectation of staying in the same place for any amount of time .
Like you, when buying my first house they approved me for literally THREE TIMES what I said I wanted and knew I could afford. I stuck to my guns.
I set a goal to be mortgage free at 50. I was, AND... I paid it off while being UNemployed.
Everybody has their own risk tolerance. Mine is low. REAL low.

 

[DADI03]

You're brother in law may have an education, but he doesn't seem to be very bright, no offense intended.
Or maybe they've changed math since I got my finance degree?
In MOST situations, a house is an APPRECIATING asset in the long run, and you (currently) get to deduct the interest you pay (assuming you itemize). So for first time home buyers, there are plenty of tangible financial reasons to purchase vs rent if you have any realistic expectation of staying in the same place for any amount of time .
Like you, when buying my first house they approved me for literally THREE TIMES what I said I wanted and knew I could afford. I stuck to my guns.
I set a goal to be mortgage free at 50. I was, AND... I paid it off while being UNemployed.
Everybody has their own risk tolerance. Mine is low. REAL low.

No offence taken. I have said my piece as much, but l won't argue with him. I wond3r what's eing taught these days. I seem to meet lots of younger people that will make payments on everything if you tell them that you'll mange all of it for them. I know somebody with a big heat and air company. E told me they're working on trying to start a rental on heat and air units. They handle every aspect of it. You just rent it. It will probably work with the mindset these days

 

[quikstang347]

$1100/month for a BIKE!?!?!?!?! How is that even possible?

You have to work hard at it but it happens all the time.

 

[quikstang347]

New CVO, some bling bling and leather, 22.9% interest and wallah. That would be my guess.

Exactly right

 

[palmettomoon]

You have to work hard at it but it happens all the time.

$1,100 per month for a bike? I'm getting the vapors over here just thinking about that.

 

[chucklenut]

Ill say this for the millienals

1) marriage is a joke these days and unless you are married and plan on having a family a house can be a real ball and chain on its own

2) there are little to no property that is affordable versus job location. Buying a house and getting stuck geographically sucks with such a spastic job market

3)credit has ruined it, i cant get a good rate on a house mostly because they assume my risk is like everyone else

4) prices are overinflated, mortage versus inflation Sucks

5) managing property sucks , alot of time invested plus trying to improve land in an area like Atlanta is impossible

6) you can still own land, but not where many young people would find jobs (see 1)

7) costs of living are stupid high


Property is probably going the same way personally owned vehicles are going; all will be owned by a few entities who canafford the insane licensing and risk and everyone will just use a service

Alot of yall older folks are applying traditional savings methods which is fine except that only works when majority of people use traditional savings methods themselves; we are at a point where most people do not follow this school of thought so others are adversely affected (see student loan buy outs in a few years; why should anyone pay their loan back when no one else intends to?)

all markets are affected. Not saying buying property is stupid but for many first time buyers it is a disaster

 

[TheJ]

To be fair, the reason auto loans didn’t normally used to be so long wasn’t because everyone used to be so fiscally responsible compared to now... It’s because several years was all the lenders would do. Which was entirely based on their perceived risk (just as it is now).

Cars on average last a lot longer reliably now than they used to. Decades ago many cars would not reliably last 7 years without major work.


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[ARCman47]

New trucks for errrybody