Auto loan question - Great Lakes 4x4. The largest offroad forum in the Midwest

C.K. · October 11th, 2012, 03:54 PM

So I am finally in a position to get out of debt and get myself the car I have always wanted. If I get it I know I will always have it so I am trying to get a long loan to lower the monthly payment so we can continue to save money at the same time. The problem is so far all I can find is a 72-84 month loan. Is that about it or is there a longer term for higher priced vehicles?

XJ90 · October 11th, 2012, 04:05 PM

Generally That's about as long as a bank or other financial institution feels comfortable having there money tied up for. If you get any further than that there are many factors that could affect them from not getting there money back in full. For example loss of job, bankruptcy, divorce, death etc...

dreezy · October 11th, 2012, 04:05 PM

Quote:

Originally Posted by C.K.

So I am finally in a position to get out of debt and get myself the car I have always wanted. If I get it I know I will always have it so I am trying to get a long loan to lower the monthly payment so we can continue to save money at the same time. The problem is so far all I can find is a 72-84 month loan. Is that about it or is there a longer term for higher priced vehicles?

Are you trolling?

XJ90 · October 11th, 2012, 04:08 PM

some companies do 10+ yr terms for high end exotic cars, motorhomes and such

C.K. · October 11th, 2012, 04:09 PM

Quote:

Originally Posted by dreezy

Are you trolling?

Are you serious?

dreezy · October 11th, 2012, 04:11 PM

Quote:

Originally Posted by C.K.

Are you serious?

How in the hell is dragging out a loan saving money?

C.K. · October 11th, 2012, 04:13 PM

Quote:

Originally Posted by XJ90

some companies do 10+ yr terms for high end exotic cars, motorhomes and such

Thats along the lines of what I am looking for. I have only found 1 place so far that offers long term loans. I was just looking for more options.

My plans were to wait until spring to get the car but due to model changes it looks like I will need to get it sooner than expected and would like to start with a lower payment and as time goes on double it and pay it off earlier than the full term.

C.K. · October 11th, 2012, 04:15 PM

Quote:

Originally Posted by dreezy

How in the hell is dragging out a loan saving money?

Its top secret. Unless you are going to pay my bills you don't need to worry too much about my finances.

sumpter1 · October 11th, 2012, 09:02 PM

If you have to finance a car for more than 60 months you are probably trying to buy something you really can't afford.

booblinker · October 11th, 2012, 09:06 PM

Quote:

Originally Posted by sumpter1

If you have to finance a car for more than 60 months you are probably trying to buy something you really can't afford.

that was my thought.

barry1me · October 11th, 2012, 09:19 PM

Quote:

Originally Posted by sumpter1

If you have to finance a car for more than 60 months you are probably trying to buy something you really can't afford.

what about a boat

BlooMule · October 11th, 2012, 09:31 PM

I wouldn't count on being able tp double up on payments. A long term loan pays off for the bank with the extra interest, so you may face penalties for an early payoff.

WSU JK · October 11th, 2012, 09:35 PM

Quote:

Originally Posted by barry1me

what about a boat

With the boat - if it has a bathroom, kitchen, and berthing area you could claim it as your primary or secondary residence and deduct the interest. When you factor that in to the increased length of the loan and then subtract those tax savings from the total cost of the boat, it could make that 10+ year loan a slightly better deal.

RockyMtnMike · October 11th, 2012, 09:40 PM

Not sure how it really works but I've been checking out some cars and while at the Mercedes dealer I read something about baloon financing. From what I gather it is a way to get a cheaper payment for a few years and at the end you can either refinance it, sell it, or turn it back in like a lease. Thats about all I know since I didn't get any info from the finance person.

So what kind of car have you always wanted?

Trendsetter · October 11th, 2012, 09:46 PM

Old man taught me long long ago don't take out a loan for a car for terms longer then the manufacture will warranty it for.

Makes pretty good sense, you don't want to be paying on a car you will be making repair payments on as well

As for the rationale about boats and rv's being longer, normally they are over 50k and at that point they normally have a galley and a head so it qualifies as a second home and you can write some of it off. And those are LUXURY items as well

Smart money if you can't put enough down to make the payments right then hold off a little bit until you can

Nuggets · October 11th, 2012, 10:13 PM

Buying a new car is a piss poor use of money in today's economy. I'll take my turd car and lack of payment over shine and a self propelled mortgage.

barry1me · October 11th, 2012, 10:42 PM

Quote:

Originally Posted by Nuggets

Buying a new car is a piss poor use of money in today's economy. I'll take my turd car and lack of payment over shine and a self propelled mortgage.

having a payment is never fun and I will agree that it shines not having a payment but if ever looking to buy a new car now is the best time as used car prices are so high. If you are looking at a car that is less then 3-4 years old in most cases you are better off just buying new with the incentives available right now.

C.K. · October 11th, 2012, 10:51 PM

Quote:

Originally Posted by sumpter1

If you have to finance a car for more than 60 months you are probably trying to buy something you really can't afford.

Oh really? So RVs are financed for 60 months?

Quote:

Originally Posted by BlooMule

I wouldn't count on being able tp double up on payments. A long term loan pays off for the bank with the extra interest, so you may face penalties for an early payoff.

Never had an issue with that before. I have always maxed out the loan terms and paid them off in half the time without penalty.

Quote:

Originally Posted by RockyMtnMike

So what kind of car have you always wanted?

Shelby Mustang - 2013 GT500

Quote:

Originally Posted by Trendsetter

Old man taught me long long ago don't take out a loan for a car for terms longer then the manufacture will warranty it for.

Makes pretty good sense, you don't want to be paying on a car you will be making repair payments on as well

Smart money if you can't put enough down to make the payments right then hold off a little bit until you can

So you wouldnt take out a loan for a used car? No warranty on an old classic. I can put money down but I would need to put down $30K to get the payments where I want them for the next year.

If I hold off I wont be able to get the same car.

Quote:

Originally Posted by Nuggets

Buying a new car is a piss poor use of money in today's economy. I'll take my turd car and lack of payment over shine and a self propelled mortgage.

It's no more a piss poor use of money than dumping it into a wheeling rig/ trailer/tow rig/.... Cable is a waste of money too. Hell now that you mention it cell phones and video games are a waste too.

Nuggets · October 11th, 2012, 11:14 PM

As I said, not as good use for money in today's economy. Vehicles devalue so quickly the first few years, it's hard to justify (to me) losing that money. Cell phones, and cable can be shut off if you are in a financial pinch, toys can be sold, but if you have a 6 or 7 year note on a car, you're committed to the payment no matter what.

To each their own. I don't carrying a lot of debt and I'd rather let somebody else take the spanking on a car before I purchase it. Because of the way I do things, I have lots of "stuff" to show for my life's work, not just a stack of receipts for interest I've paid.

SportRedGT1 · October 11th, 2012, 11:22 PM

Quote:

Originally Posted by Nuggets

To each their own. I don't carrying a lot of debt and I'd rather let somebody else take the spanking on a car before I purchase it. Because of the way I do things, I have lots of "stuff" to show for my life's work, not just a stack of receipts for interest I've paid.

It's not even spanking on a new car anymore, it's butthurt on used cars too. I bought a 2009 Cadillac CTS for $27k in March 2011 ($46k MSRP). It's worth $17k trade in....and that was after a little negotiation. I thought my CTS would be held on to for a long time. 18 months later it has been in the shop 22 times and my yearly mileage almost doubled from 13k to 23k due to a new job.

"Getting out of debt" and "Getting the car I always wanted" are pretty contradictory statements, especially when you consider you're going into debt and looking for a loan term that is greater than acceptable for a dime-store hooker car.

October 11th, 2012, 03:54 PM	#1
C.K. Dont Feed the Cyco Join Date: 11-05-05 Location: 48386 Posts: 17,297 iTrader: (21)	Auto loan question So I am finally in a position to get out of debt and get myself the car I have always wanted. If I get it I know I will always have it so I am trying to get a long loan to lower the monthly payment so we can continue to save money at the same time. The problem is so far all I can find is a 72-84 month loan. Is that about it or is there a longer term for higher priced vehicles?

October 11th, 2012, 04:05 PM	#2
XJ90 Do Work Join Date: 04-20-08 Location: Montague/Michigan Posts: 106 iTrader: (0)	Generally That's about as long as a bank or other financial institution feels comfortable having there money tied up for. If you get any further than that there are many factors that could affect them from not getting there money back in full. For example loss of job, bankruptcy, divorce, death etc...

October 11th, 2012, 04:08 PM	#4
XJ90 Do Work Join Date: 04-20-08 Location: Montague/Michigan Posts: 106 iTrader: (0)	some companies do 10+ yr terms for high end exotic cars, motorhomes and such

October 11th, 2012, 09:02 PM	#9
sumpter1 Senior Member Join Date: 04-22-11 Location: Maybee, MI Posts: 158 iTrader: (0)	If you have to finance a car for more than 60 months you are probably trying to buy something you really can't afford.

October 11th, 2012, 09:40 PM	#14
RockyMtnMike Senior Member Join Date: 02-14-06 Location: Brownstown Posts: 1,301 iTrader: (6)	Not sure how it really works but I've been checking out some cars and while at the Mercedes dealer I read something about baloon financing. From what I gather it is a way to get a cheaper payment for a few years and at the end you can either refinance it, sell it, or turn it back in like a lease. Thats about all I know since I didn't get any info from the finance person. So what kind of car have you always wanted?

October 11th, 2012, 09:46 PM	#15
Trendsetter Senior Member Join Date: 11-06-05 Location: Annapolis, MD and Holland MI Posts: 1,843 iTrader: (0)	Old man taught me long long ago don't take out a loan for a car for terms longer then the manufacture will warranty it for. Makes pretty good sense, you don't want to be paying on a car you will be making repair payments on as well As for the rationale about boats and rv's being longer, normally they are over 50k and at that point they normally have a galley and a head so it qualifies as a second home and you can write some of it off. And those are LUXURY items as well Smart money if you can't put enough down to make the payments right then hold off a little bit until you can

October 11th, 2012, 10:13 PM	#16
Nuggets Professional Pisser Offer Join Date: 09-15-06 Location: Bay City, MI Posts: 12,866 iTrader: (12)	Buying a new car is a piss poor use of money in today's economy. I'll take my turd car and lack of payment over shine and a self propelled mortgage.

October 11th, 2012, 11:14 PM	#19
Nuggets Professional Pisser Offer Join Date: 09-15-06 Location: Bay City, MI Posts: 12,866 iTrader: (12)	As I said, not as good use for money in today's economy. Vehicles devalue so quickly the first few years, it's hard to justify (to me) losing that money. Cell phones, and cable can be shut off if you are in a financial pinch, toys can be sold, but if you have a 6 or 7 year note on a car, you're committed to the payment no matter what. To each their own. I don't carrying a lot of debt and I'd rather let somebody else take the spanking on a car before I purchase it. Because of the way I do things, I have lots of "stuff" to show for my life's work, not just a stack of receipts for interest I've paid.