Car buyers stretch loan payments to record lengths to get in pricier vehicles

[rangerrebew]

Car buyers stretch loan payments to record lengths to get in pricier vehicles

Published: July 4, 2017 6:10 a.m. ET
 
By
Rachel
Koning Beals
 

As car buyers’ obsession with bigger, pricier vehicles grows, so does their willingness to take longer to pay for them, says new analysis from Edmunds.com.

The average auto-loan length reached an all-time high of 69.3 months in June. That’s 6.8% longer than five years ago, said the site that provides auto industry statistics and news.

The average amount that buyers financed was hit with the biggest uptick for the year last month, at $30,945, or up $631 from May. The financing trend also lead to the highest monthly payments for the year, now averaging $517, which increased from $510 in May.

http://www.marketwatch.com/story/car-buyers-stretch-loan-payments-to-record-lengths-to-get-in-pricier-vehicles-2017-07-03

[Fishrrman]

I just pay cash.
Easier that way!

[ABX]

Many people don't realize, like other collateralized loans, often if you go with a shorter term, you get a lower interest rate for only paying a bit more each month.  You end up paying less and in less time.

[goodwithagun]

As I posted on a similar thread, this is truly the trend. Although hubby and I just barely escaped being millenials, we work with them and our kids' peers have them as parents. It's a total culture shock. Right now we are planning an elaborate professional firefighter funeral (for an amazing human being who happened to be a professional firefighter) and the few milenials on the department don't have complete dress uniforms. They have been given uniform allowances AND STILL DON'T HAVE DRESS UNIFORMS!

They insist that the money was spent on wiser issues (aka student loans that have nothing to do with Fire science) and that they should be allowed to have a role in the service without the complete uniform. They were obviously told no, instructed that they coud be fired, and my husband might have told them that they have no business showing up tomorrow looking like a bag of assholes. Needless to say, they miraculously came up with money for the dress uniforms.

@Wingnut my new go-to insult is now bag of assholes thanks to my husband. Feel free to dole that one out generously.

[Wingnut]

@Wingnut my new go-to insult is now bag of assholes thanks to my husband. Feel free to dole that one out generously.

@goodwithagun

Oaky doaky! 

[goodwithagun]

@goodwithagun

Oaky doaky! 

I'm also pretty raw from the death of a good friend and drinking heavily, so run those instructions by the mods first.

[Wingnut]

I'm also pretty raw from the death of a good friend and drinking heavily, so run those instructions by the mods first.

Same here.  Cept for the death part.  But I am raw (recurring jock itch) and I alway ignore the Mods...  so we are good then!

[roamer_1]

The most expensive vehicle I ever bought was my current Caravan... three grand. And that was a fluke. I have seldom paid 2500... Little it of fixin involved, but I can usually keep a rig for around 10 years.

I can't imagine why someone would pay 30k for a car. I only paid 42k for my house. Doesn;t make any kind of sense.

[goodwithagun]

Same here.  Cept for the death part.  But I am raw (recurring jock itch) and I alway ignore the Mods...  so we are good then!

Jameson Caskmates is my drink of choice tonight, and I'll drink to that sir!

[Smokin Joe]

Kids aren't taught how to handle money or credit any more. They aren't taught enough about vehicles to work on their own, and teevee convinces them they need new. Crap that's more for a car loan than I paid for my house.