More than half of all new car loans in Canada financed for 84 months

[Serpent]

This is insane:
https://jalopnik.com/more-than-half-of-all-new-car-loans-in-canada-are-finan-1829964502


Now that I think of it, maybe I can afford an '05/06 Ford GT? LOL

 

[RedVenom48]

With the way the car market here is, Id guess that's more than the norm now. For example when new F-150 prices are at or near $50k.... yeah people need a little more help getting a payment they can afford.

My Shelby is the last vehicle I intend to purchase for myself via loan. Going to help my lady get her dream Wrangler (maybe bronco if is a real competitor in price and features). Probably need to finance it but after that she's done.

 

[Malern28us]

I agree. I am wanting a F150 with Nav and heated/cooled seats. Cannot bring myself to pay that much for the last vehicle I plan on purchasing in my lifetime.

 

[98slowbra]

I paid $70,000 for my Raptor and I went with 72 months cause it was just to much and I could not afford after I put everything I wanted on it. They are costly for the stuff you add to it.

 

[Corbic]

*shrug*

When your paying 0-3% interest why not?

Used car values are also higher then ever before. New cars last longer, are more reliable and more safe.

In many cases your also going to get better gas mileage compared to a used car further supporting the payment on something newer.


Most people just except a car is going to cost them $2-500 a month no matter what. Cash up front + maintenance and higher gas bill or monthly payment and warranty and lower gas bills

Lease, Long Term financing.

As mentioned, an Accord is easily $35k OTD, an F150 $50k, etc.





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[IronSnake]

Part of why I didn't buy my new Tundra was due to the financing terms. Prices of new cars/trucks are so damn high that it just doesn't make sense to go in, finance for 84, be stuck with the thing for 7 years, and pay a not great interest rate. Anyone that finances 4+ percent at 84 is going to go bankrupt.

It's used cars for us from now on. If I can pay cash for it, I will. And I'll keep them going.

 

[IronSnake]

Part of why I didn't buy my new Tundra was due to the financing terms. Prices of new cars/trucks are so damn high that it just doesn't make sense to go in, finance for 84, be stuck with the thing for 7 years, and pay a not great interest rate. Anyone that finances 4+ percent at 84 is going to go bankrupt.

It's used cars for us from now on. If I can pay cash for it, I will. And I'll keep them going.

 

[black92]

Personally, I'd do the same if it's an option, but treat it as a shorter term. I bought my car on a 5 year term, but paid it off in 2 years. I liked the idea that if something should happen, I can give myself a little breathing room if needed. Currently doing the same on the wife's car. Bought it on a 5 year term and will pay it off in the spring which is about 1.5 years of ownership.

 

[DriftwoodSVT]

My 18 Raptor is financed for 60 months, and that seems long. I can't imagine 84 months.

 

[Zemedici]

My f150 is 60 months as well....

if it was 84 months there would be another toy parked next to it lololol

 

[Kiohtee]

I'm not surprised. Being that I sell Volvo, I'm a little more protected from the 72-84 month financing, but I seen plenty of it during my short stint with Honda. It's really the only way for people with a house and kids to afford a new car anymore.

The average new car price is $35,285. That's $486 a month, assuming 0% interest and 72 months. That jumps to $520 a month if you can qualify (and if it's even available) for a 1.99% new car rate. Now imagine being average and getting something like a 3.5-4.9% rate.

 

[DriftwoodSVT]

Now imagine being average and getting something like a 3.5-4.9% rate.

This is SVTP. No one here is average!

 

[STAMPEDE3]

That's how they manage to keep selling them at the outrageous prices they are asking. Plain and simple.

 

[Kiohtee]

That's how they manage to keep selling them at the outrageous prices they are asking. Plain and simple.

And it's why the same salesman putting them in a vehicle in 2016 can't roll them into anything else in 2018. Because they're $8K+ buried.

 

[STAMPEDE3]

Yea,
84 months is good for 3 things,

1. car makers to keep asking prices way over what they are actually worth.
2. People buying cars that cost more than they can afford.
3. A person who actually will keep it for 7+ years to get a affordable note because he should have never bought that over priced F250 in the first place....

 

[03 Cobra DSG]

84 months???? The only things I’ve kept longer than that have been my wife and kid lol.


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[03Sssnake]

Jesus...I don't even like doing 60 months

 

[Zemedici]

Yea,
84 months is good for 3 things,

1. car makers to keep asking prices way over what they are actually worth.
2. People buying cars that cost more than they can afford.
3. A person who actually will keep it for 7+ years to get a affordable note because he should have never bought that over priced F250 in the first place....

what about if you put a fat down payment down, and therefore aren't upside down?

 

[13COBRA]

Doesn't surprise me. Cars last longer than they used to. More people live closer to where they work than ever before, therefore they put less miles on their vehicles. Interest rates aren't very high right now, a year from now it may be a different story.

Ford Motor Credit offers 84 months at 2.9% and 72 at 0% on most vehicles.

Personally, I wouldn't do an 84 month loan, but I see it all the time.

The people that shouldn't do an 84 month loan are people who drive 15k+ miles a year, they're $XXXX upside down in their current vehicle, and they trade cars every few years. That equals a recipe for disaster. BUT, if you drive 10k miles a year, don't have any inequity to roll in, and keep your vehicles for 7+ years...it makes sense. The money you're saving at 2.9% interest could go towards paying off credit cards, mortgages, etc that are at higher interest rates.

 

[STAMPEDE3]

what about if you put a fat down payment down, and therefore aren't upside down?

So you still overpaid but are not upside down.
As you can tell, I have a big issue with the auto industry at the moment. lol