Seven year auto loans

[ExFlyBoy5]

What are you going to do when gas engine cars are becoming obsolete, which could happen in 10-15 years? Self-driving cars will be here about the same time.

I think your time frame is a little skewed. There is a LOT of money that is pumped into the political system by the oil companies. Will this happen? Yes...eventually but 10-15 years? I hardly think so.

 

[athena53]

Keep a car for 20 years in this day and age of rapidly changing technology? I couldn't imagine driving a car without remote start, bluetooth, a USB port for my music, voice commands, rear view camera, etc.

Somehow I'm getting by. All those bells and whistles cost extra money, fail, and are expensive to repair. Some spy on you and "share" your data. As of 1/1/2014, all new cars are REQUIRED to have a "black box". Do you remember ever being asked if you wanted one, or being given an easy way to disable it? Heck, no. I lead a boring Church Lady, Suburban Grandma life but I'm very glad my current car doesn't have one. I have a standalone GPS that works just fine and is pretty cheap to replace because it's not built into the dash. I have a Bluetooth-enabled Bose speaker that amplifies podcasts stored on my phone on long trips. Clunky, but also far more versatile- I use it in the house, too.

There are times when I realy we wish we could still buy a 2019 version of a stripped-down VW Beetle- except with automatic transmission and A/C.

 

[Walt34]

I couldn't imagine driving a car without remote start, bluetooth, a USB port for my music, voice commands, rear view camera, etc.

Somehow, we have struggled through life without all of those amenities until very recently. Okay, the 5-year-old Honda as Bluetooth, but we don't use it, and a rear view camera, which we do. My 2003 GMC pickup truck works just fine without either or any of those things, and I don't miss them.

A lot of things are in the "nice to have" category like GPS navigation in one's car, but can hardly be called necessary. For decades we managed somehow with just reading maps and when needed, supplemented with directions from a local guy at the gas station. So if the GPS receiver, or the whole satellite system goes down, we can manage just fine.

 

[Qs Laptop]

Somehow, we have struggled through life without all of those amenities until very recently. Okay, the 5-year-old Honda as Bluetooth, but we don't use it, and a rear view camera, which we do. My 2003 GMC pickup truck works just fine without either or any of those things, and I don't miss them.

A lot of things are in the "nice to have" category like GPS navigation in one's car, but can hardly be called necessary. For decades we managed somehow with just reading maps and when needed, supplemented with directions from a local guy at the gas station. So if the GPS receiver, or the whole satellite system goes down, we can manage just fine.

Sure. Now go back 50 years. I grew up without a dishwasher, no garbage disposal, no garage door opener, no microwave, no programmable thermostat, didn't have air conditioning in our cars. Yep, got by without it. But imagine going back to that lifestyle. No thanks.

 

[Teacher Terry]

I don’t have any of those features. If gas engines become obsolete in 15 years it should be time for us to replace our cars that are 12 years old.

 

[Qs Laptop]

I think your time frame is a little skewed. There is a LOT of money that is pumped into the political system by the oil companies. Will this happen? Yes...eventually but 10-15 years? I hardly think so.

It might happen in less than 10 years. The cost of electric cars is coming way down. It will be simple economics and the oil companies won't be able to stop the switchover.

Pretty soon the choice will be to get a gas powered car for $30,000 with a 3 year warranty or get an electric car for $25,000 with a million mile warranty. Better acceleration than a gas powered car. Plug it in at home in your garage. Never go to the gas station. No maintenance except tire rotation and wiper blades. Tap your phone at the shopping mall and "summon" your driverless electric car to come and get you if it's raining.

And yes, I am aware of the limitations and shortcomings of electric vehicles, but the changeover will come quickly.

 

[jazz4cash]

I couldn't imagine driving a car without remote start, bluetooth, a USB port for my music, voice commands, rear view camera, etc.

And that’s exactly why some folks need 7 yr loans for autos because it’s the only way they can get all the things they can’t imagine being without. My daily driver is an ‘02 pickup truck so I haven’t gotten spoiled with all the new bells and whistles.

 

[Andre1969]

And that’s exactly why some folks need 7 yr loans for autos because it’s the only way they can get all the things they can’t imagine being without. My daily driver is an ‘02 pickup truck so I haven’t gotten spoiled with all the new bells and whistles.

For me, it seems like the whole "Bells and Whistles" era was the 1970's and 80's, and everything since then has just been baby steps. The 70's and 80's was when I started getting cars with more power assists, more likely to have split front seats that could adjust in a variety of ways, better factory sound systems, more features in general, and eventually, more safety features.

My range of vehicles, though, goes from a 1957 DeSoto Firedome to a 2012 Dodge Ram, so understandably, a 15-20 year range in modern vehicles really is baby steps, compared to how much cars used to change back in the day. For instance, I don't think modern cars really feel THAT much different from the 2003 Regal I inherited from my father. But then, look at what your typical car was like 15-20 years before 1957. Or after 1957, and see how much they changed.

 

[tb001]

Back up cameras and blind spot detection are two features worth paying for, IMO. So are air bags. And seat belts for that matter. Lane keeping assist and adaptive cruise control are also really nice to have if you drive a fair amount.

Are the extra safety features worth stretching a budget for, maybe not. But for us we’re happy to pay the extra costs associated with them. Part of that cost is having more recent models.

Given our driving now (lots of 5-10mile trips) it’s highly likely our next vehicle will be electric. And in 15 yrs if self driving tech is there, you can bet we’ll be embracing it as we age.

 

[Qs Laptop]

Back up cameras and blind spot detection are two features worth paying for, IMO. So are air bags. And seat belts for that matter. Lane keeping assist and adaptive cruise control are also really nice to have if you drive a fair amount.

Are the extra safety features worth stretching a budget for, maybe not. But for us we’re happy to pay the extra costs associated with them. Part of that cost is having more recent models.

Precisely. Now imagine your recent college graduate needing a vehicle. Suddenly lane assist, rear camera, adaptive cruise, blind spot detection, lane watch, etc. is sounding really good.

My 22 year old son, a recent college grad, got a good paying job in Arizona in February. He would be driving to Oregon and working there June through September, then going back to Arizona. He needed a car.

He had some money saved up, but only enough to buy a $5,000 to $6,000 car. That doesn't buy much--maybe an 8 to 10 year old small or mid-sized sedan with 150,000-175,000 miles on it. I couldn't stand the thought of him driving to Arizona in a 10 year old car of dubious reliability, never mind going to Oregon and back to Arizona. So the leasing option jumped front and center. He got a new Honda Civic with most of the Honda safety features.

He has less than $1,500 in monthly living expenses, so a $280 lease payment is not bad at all. The peace of mind it gives me as a parent to know he's in a new, safe vehicle with the safety features and no repair expense worries is incalculable.

 

[athena53]

And that’s exactly why some folks need 7 yr loans for autos because it’s the only way they can get all the things they can’t imagine being without. My daily driver is an ‘02 pickup truck so I haven’t gotten spoiled with all the new bells and whistles.

What irks me is that you have no choice in most of these items, especially if you buy off the lot. Airbags, pollution controls and seat/shoulder belts- I get that. Bluetooth, the "black box", backup cameras, onboard GPS, odd signals that go off when you change lanes on an empty road without signaling- why? I'm not a fan of "Power assist"- I found that when mine failed briefly, the car could not be driven safely, period. It was NOT like driving a car with manual steering. The "out of lane" signal displayed an icon I couldn't interpret in my rental car and of course there was no manual in the car so I could look it up. I resorted to advice from my friends on FB.

I'm better off without most of this stuff and yet my next car is likely to have it- and I'll pay extra for it.

 

[gwraigty]

What irks me is that you have no choice in most of these items, especially if you buy off the lot.

Just tell them you want the base model, or the next one up. One time a Ford dealer did a dealer locate to get us one, because it would have cost us $5K more to get a car off the lot, loaded with stuff we didn't want or need.

 

[pb4uski]

What irks me is that you have no choice in most of these items, especially if you buy off the lot. Airbags, pollution controls and seat/shoulder belts- I get that. Bluetooth, the "black box", backup cameras, onboard GPS, odd signals that go off when you change lanes on an empty road without signaling- why? I'm not a fan of "Power assist"- I found that when mine failed briefly, the car could not be driven safely, period. It was NOT like driving a car with manual steering. The "out of lane" signal displayed an icon I couldn't interpret in my rental car and of course there was no manual in the car so I could look it up. I resorted to advice from my friends on FB.

I'm better off without most of this stuff and yet my next car is likely to have it- and I'll pay extra for it.

That is why we ordered our last two new vehicles... so we could get what we wanted and valued and not have to pay for things we didn't value. Applies to both trim levels and options... as a bonus we get to pick the colors that we like.

 

[Running_Man]

Sure. Now go back 50 years. I grew up without a dishwasher, no garbage disposal, no garage door opener, no microwave, no programmable thermostat, didn't have air conditioning in our cars. Yep, got by without it. But imagine going back to that lifestyle. No thanks.

Really, there is not one thing there that I feel is very important…...

 

[Andre1969]

Really, there is not one thing there that I feel is very important…...

Personally, I think the microwave and air conditioning are nice. Air conditioning almost seems mandatory in modern cars, because of the way they're designed. They're a lot more airtight than back in the day, and the designs are more "fuselaged", where the sides curve in, plus rakish windshields and rear windows. That lets in a lot more of the sun's rays than older cars that were more slab-sided, and upright. Old cars tended to have vent windows, fresh air intakes under the dash, and had rear windows that rolled down, even in the 2-door cars. There's also a lot more plastic in them, rather than good old fashioned dangerous metal. And plastic seems like it holds the heat in more than metal.

But, those other things...garbage disposal, dishwasher, programmable thermostat, and garage door opener, I don't think are all that important. I have a dishwasher, and have to remember to run it every once in awhile, so the seals don't dry out! I also have a programmable thermostat, but I never programmed it. I just set it manually.

 

[Andre1969]

I'm not a fan of "Power assist"- I found that when mine failed briefly, the car could not be driven safely, period. It was NOT like driving a car with manual steering. The "out of lane" signal displayed an icon I couldn't interpret in my rental car and of course there was no manual in the car so I could look it up. I resorted to advice from my friends on FB.

Can you even get manual steering on a car, anymore? I had the power steering fail in a 1979 Chrysler New Yorker, at a car show back in 2011. And yep, definitely NOT the same thing as manual steering! For one thing, the steering ratio is tighter on a power steering car, so it requires more effort for each turn of the wheel. And all that power stuff actually seems to work against you when it fails. In the old days, when power steering was still optional, they also made the steering wheels a bit bigger, to give you more leverage. And these days, with nose-heavy FWD cars, and wide-profile tires, it requires even more effort to turn that wheel.

I had the power steering fail in a '68 Dart, and just drove it that way, for about 40,000 miles. But, that car was also lighter than a '79 New Yorker. And, I was a bit younger in those days, and in a bit better shape.

 

[joeea]

Keep a car for 20 years in this day and age of rapidly changing technology? I couldn't imagine driving a car without remote start, bluetooth, a USB port for my music, voice commands, rear view camera, etc.

LOL!

Sounds like a 2-year phone plan. How did we ever get by without the newest tech? Imagine having to actually sit in the car to turn it on!

 

[bclover]

They should just buy a car that they can afford. People want expensive SUV’s, trucks, etc. My first new car was when I was in my 30’s. It was small with no extras at all. Now we buy 3-4 year old cars pre-certified by the dealer with low miles and a warranty. We drive them until repairs become too costly.

sorry it is not expensive suv's. My son has a hydiua and yes they wanted to give him a 7 year loan.

One of the things i noticed is that especially with new college grads, they want the smallest payment possible so they are not looking at the total cost. My son got a 2 year old certified hyundai and he was all gung ho to get a 6 year loan because the payment was ridiculous like 89 bucks. with a new job, student loan and an apartment that's the number he saw.

Not everyone is bouncing around in cadillac escapades and tricked out f450

Stereotype

 

[The Cosmic Avenger]

I think your time frame is a little skewed. There is a LOT of money that is pumped into the political system by the oil companies. Will this happen? Yes...eventually but 10-15 years? I hardly think so.

I think it will be a very slow conversion, basically a more drawn-out version of VHS-to-discs (DVD/Blu-Ray/4K), as cars usually last longer than consumer electronics. We are already seeing similarities: a few early adopters pave the way, the market adapts to accommodate them a little but support (charging stations/DVDs) is not the standard and not always available, then as more people slowly try the new tech, the adaptations grow. Once they reach a tipping point, both choices are supported by the market for a while, and you get a higher conversion rate, but a lot of holdouts don't want to invest the money, so you have an inversion, where the old tech is still supported, but the new tech is the standard, and the old tech has support that is harder and harder to find. Eventually companies decide it's not worth their while to support it, and then the true death of the old tech begins.

 

[Mdlerth]

Rome wasn't burned in a day

I think it will be a very slow conversion, basically a more drawn-out version of VHS-to-discs (DVD/Blu-Ray/4K), as cars usually last longer than consumer electronics. We are already seeing similarities: a few early adopters pave the way, the market adapts to accommodate them a little but support (charging stations/DVDs) is not the standard and not always available, then as more people slowly try the new tech, the adaptations grow. Once they reach a tipping point, both choices are supported by the market for a while, and you get a higher conversion rate, but a lot of holdouts don't want to invest the money, so you have an inversion, where the old tech is still supported, but the new tech is the standard, and the old tech has support that is harder and harder to find. Eventually companies decide it's not worth their while to support it, and then the true death of the old tech begins.

+1

Infrastructure takes a long time to revamp. Anybody else remember Regular or Unleaded?

 

[Elizrogers]

I have always bought my cars new, because I'm not mechanically knowledgeable enough to know a clunker from a good car, so want a better warranty. But I keep my cars for decades. I had an '89 LTD for 16 years and currently have an '02 Highlander. The paint is fading/chipping/peeling in places and I'd like to get a new one for the looks. To get a good paint job in my area would cost $6000. The car blue book's at $3000 in excellent condition, so would never get that money back when selling. Otherwise it runs like a charm, seldom any maintenance other than regular oil changes, and the interior looks nearly as good as new. So, can't justify the cost of a new car just for my pride wanting a shiny new exterior. I lost the FOB a couple years ago and am too cheap to pay $150 for a new one, so have to open the old-fashion way, with the key. Guess what? It works just fine.

When I do get a new car the dilemma is how to pay for it. I could take $25-$30,000 from my retirement portfolio and pay cash, but one of my advisors reminded me that would increase the annual income I pay Fed tax on. If I make monthly payments, I could take less out each year and not increase taxes as much, but I would only do that if I could get like a 5 year 0% apr. In the past, when I was working, I would always finance it and immediately roll it into my mortgage via refi, which didn't increase the monthly payment as much as the car loan and I could deduct the interest. I don't know about leasing as this will probably be my last car, given how long I keep one (and I'm 68), and I don't want to have a car payment forever or have to choose a new one every couple years. A lot to figure out.

 

[Qs Laptop]

+1



Infrastructure takes a long time to revamp. Anybody else remember Regular or Unleaded?

Now do 4G cell phone towers.

 

[brewer12345]

It might happen in less than 10 years. The cost of electric cars is coming way down. It will be simple economics and the oil companies won't be able to stop the switchover.

Pretty soon the choice will be to get a gas powered car for $30,000 with a 3 year warranty or get an electric car for $25,000 with a million mile warranty. Better acceleration than a gas powered car. Plug it in at home in your garage. Never go to the gas station. No maintenance except tire rotation and wiper blades. Tap your phone at the shopping mall and "summon" your driverless electric car to come and get you if it's raining.

And yes, I am aware of the limitations and shortcomings of electric vehicles, but the changeover will come quickly.

I don't give a damn about any of that electric car stuff. I like my gas powered, full-sized pickup. It hauls and tows anything I want, I don't have to wait for a recharge, and if I am miles from nowhere and don't have quite enough go-go juice in the tank I can carry an extra 5 gallon container. At 5500 pounds curb weight, I don't worry too much what happens if I have a wreck with an electric car, either.

 

[morriss003]

I would never recommend a 7-year car loan. But one relevant factor is that modern cars last much longer than they used too. I saw an article the other day about how the interiors were now not lasting as long as the exteriors and mechanicals.

Good point. Our Suzuki Grand Vitara Sport is 12 years old. No plans to sell. But as we got older we began leasing electric cars. We are on our second, a Kia Niro.

 

[TappyGee]

......When I do get a new car the dilemma is how to pay for it. I could take $25-$30,000 from my retirement portfolio and pay cash, but....

I looked at new Highlanders a few weeks back. $25-$30,000 is not even close.