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      04-05-2020, 01:50 PM   #23
DarkstarZero
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Quote:
Originally Posted by Bongoxxx View Post
What reputable Financial Institution would even offer a 10 year auto loan?
Most of them.

BMW and Merc's official version is a balloon with refinancing at the end, essentially a 10-12 year auto loan.
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      04-05-2020, 10:44 PM   #24
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Quote:
Originally Posted by BzsBimmer View Post
Who gets a 10 year loan at 12% interest so they can afford it or have a low monthly payment? Especially for a luxury vehicle?

Your loan officer might be exaggerating a bit much.

There will be a meltdown in the financial markets but my biggest concern is that this C19 may never go away until a vaccine comes out. With global contact, this could just end up being a cyclical crisis.
If people are truly getting 10yr loans at 12% interest for a car... 1. You REALLY can't afford it and 2. You need to take some financial courses ASAP on managing money. 3. Get some help for how stupid you are.
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      04-05-2020, 10:53 PM   #25
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Quote:
Originally Posted by premier3is View Post
If people are truly getting 10yr loans at 12% interest for a car... 1. You REALLY can't afford it and 2. You need to take some financial courses ASAP on managing money. 3. Get some help for how stupid you are.
I am not surprised because we don't do ANY financial education of the general population in this country unless your local high school has an elective or something. People are financially illiterate and easily talked into buying things they cannot afford. Corporate America does not mind this one bit.
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      04-06-2020, 01:35 AM   #26
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      04-06-2020, 08:09 AM   #27
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Quote:
Originally Posted by premier3is View Post
If people are truly getting 10yr loans at 12% interest for a car... 1. You REALLY can't afford it and 2. You need to take some financial courses ASAP on managing money. 3. Get some help for how stupid you are.
I find this hard to believe this is happening on any modern luxury car. It sounds like the situation at a Mitsubishi or Nissan dealer. Or one of those fly-by-night used car lots selling beaten 20 yo S class mercedes for $10k. I don't think there's going to be much of a sustained dip in auto values. Most banks are trying to do what they can to make sure people can stay in their cars and houses, so deferring payments and such are not uncommon. This should hopefully prevent a massive sell-off of higher end vehicles, thereby tanking resale values. I mean the whole purpose of the financial rescue legislation is to prevent complete collapse. I know many people here are wishing and hoping for financial ruin, but it seems a bit unlikely. Looks like we're nearing the apex of the infection and even data from NY is looking a smidge better.

There may be a dip in used car prices, but I see it to be very unlikely that you're buying $20k mint condition 993s for example.
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      04-06-2020, 08:27 AM   #28
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To be clear I am not hoping for it, far from it as I am affected, but i think it will happen.
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      04-06-2020, 09:46 AM   #29
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Quote:
Originally Posted by premier3is View Post
If people are truly getting 10yr loans at 12% interest for a car... 1. You REALLY can't afford it and 2. You need to take some financial courses ASAP on managing money. 3. Get some help for how stupid you are.
I completely agree if the person in question is buying/leasing a BMW/MB/Audi,Lexus, etc. But if the person is doing that on a basic economy car, that may be all that person can afford and the person may have no other choices.
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      04-06-2020, 09:58 AM   #30
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Quote:
Originally Posted by SteveinArizona View Post
I completely agree if the person in question is buying/leasing a BMW/MB/Audi,Lexus, etc. But if the person is doing that on a basic economy car, that may be all that person can afford and the person may have no other choices.
Exactly. My mother-in-law, even though she could afford to buy a very expensive car (she's very frugal) financed a Hyundai Sonata for 9 years at 0% financing! She drives MAYBE 2,500 miles per year so will own this car for probably 15+ years. There are TONS of people out there that do this.

So to your point, even if the interest isn't 0%, many people just need basic transportation and have to extend loan amounts just to not overextend themselves in the immediate term. It's stupid on a luxury car, but lots of people are stupid lol.
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      04-06-2020, 11:37 AM   #31
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Quote:
Originally Posted by Burrcold View Post
Exactly. My mother-in-law, even though she could afford to buy a very expensive car (she's very frugal) financed a Hyundai Sonata for 9 years at 0% financing! She drives MAYBE 2,500 miles per year so will own this car for probably 15+ years. There are TONS of people out there that do this.

So to your point, even if the interest isn't 0%, many people just need basic transportation and have to extend loan amounts just to not overextend themselves in the immediate term. It's stupid on a luxury car, but lots of people are stupid lol.
I can totally see financing a car for that long at 0% interest. Thatís basically free money. Why wouldnít you, and use the savings from a finance rate to invest?

My belief is that when you get into luxury vehicle territory, most people have some financial purpose in leasing, financing etc.. Is it really common for people to purposefully over extend themselves? Maybe a poll needs to happen lol.
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      04-06-2020, 11:59 AM   #32
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Quote:
Originally Posted by BzsBimmer View Post
Is it really common for people to purposefully over extend themselves? Maybe a poll needs to happen lol.
A poll won't work because nobody would admit that they are overextending themselves to buy a luxury car (or even know they are since banks/credit unions/etc. are willing to offer long loans so that must mean they can afford it? LOL ...just like mortgages where unemployed people are in some cases approved for half a million or more purchases. We are a society of debt with no regard for rainy day savings unfortunately.
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      04-06-2020, 12:01 PM   #33
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True. Rainy day, yes. But this current situation is a flat out typhoon!!
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      04-06-2020, 12:25 PM   #34
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Quote:
Originally Posted by BzsBimmer View Post
True. Rainy day, yes. But this current situation is a flat out typhoon!!
Agreed! Crazy times.
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      04-06-2020, 12:38 PM   #35
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Quote:
Originally Posted by BzsBimmer View Post
True. Rainy day, yes. But this current situation is a flat out typhoon in a hurricane, in an earthquake, in a thunderstorm, in a blizzard in a fire!!!
Fixed it for you.
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      04-06-2020, 12:40 PM   #36
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Quote:
Originally Posted by New2Roundel View Post
I find this hard to believe this is happening on any modern luxury car.
You'd be surprised to know how many people live beyond their means.
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      04-06-2020, 12:58 PM   #37
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Originally Posted by flybigjet View Post
Fixed it for you.
Thanks. Interesting you can have a fire with so much moisture lol.
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      04-06-2020, 02:55 PM   #38
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yup. most live beyond there means. its insane how much you can finance things. I was just reading the average cc debt is like $8300.

- 30 year mortgage on a house. sure sign here. oh and add another 50% to the cost because that's what you'll pay in interest over the lifetime of the loan.
- bought a house but don't have furniture. sure we can finance that too
- don't have much left in the bank to plop down 60k on an M3? no problem, you don't need to save up, for just 800 a month you can drive off with one today with a lease.
- new iPhone/android ? no need to pay the $1000 right now, just finance it.

people are just short sighted. they live month to month.

I was watching some car youtubers at work today. everyone is just sitting at a desk and talking instead of driving. As much as a get annoyed by Doug Demuro he's a smart man... he had 3 months of car review videos saved up to upload in case of a crisis like this.
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      04-06-2020, 03:06 PM   #39
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Yeah having content funnel or funnels in general are wise.

I guess YOLO is the theme of humanity.
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      04-06-2020, 03:08 PM   #40
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Quote:
Originally Posted by BzsBimmer View Post
My belief is that when you get into luxury vehicle territory, most people have some financial purpose in leasing, financing etc.. Is it really common for people to purposefully over extend themselves? Maybe a poll needs to happen lol.
That's what you would think, because you're a reasonable person. I know a Porsche sales associate in my state and he's told me a lot of scary stories. There are people who make tons of money but spend it even faster. They get addicted to the lifestyle and are constantly balancing on the razor's edge.
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      04-06-2020, 03:13 PM   #41
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Yeah I can see that. As they say, the more you make, the more you spend.

Sure, a very big generalization but thereís always some truth to these phrases, arenít there.
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      04-06-2020, 03:14 PM   #42
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Quote:
Originally Posted by chris719 View Post
That's what you would think, because you're a reasonable person. I know a Porsche sales associate in my state and he's told me a lot of scary stories. There are people who make tons of money but spend it even faster. They get addicted to the lifestyle and are constantly balancing on the razor's edge.
The wife is one of them. Our combined incomes are very decent, 10%ers basically. But I am called cheap and stingy because i trip out at the absolutely relentless spending.
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      04-06-2020, 03:14 PM   #43
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Quote:
Originally Posted by premier3is View Post
If people are truly getting 10yr loans at 12% interest for a car... 1. You REALLY can't afford it and 2. You need to take some financial courses ASAP on managing money. 3. Get some help for how stupid you are.
https://www.evanpaulmotorcars.com/car/505-mclaren-570s

McLaren 570s.
Probably 160k asking price. and 20k down

$140,000 to be financed.
144 month loan at 6.25% ~ 1380 a month.

That's $60k in just interest for a $160k car
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      04-07-2020, 09:56 AM   #44
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Quote:
Originally Posted by Humdizzle View Post
https://www.evanpaulmotorcars.com/car/505-mclaren-570s

McLaren 570s.
Probably 160k asking price. and 20k down

$140,000 to be financed.
144 month loan at 6.25% ~ 1380 a month.

That's $60k in just interest for a $160k car
A 12 year loan straight from the dealer!?

We're in a recession. Right now all the lost jobs are in travel and service but they will come back once C19 is over. The jobs that will have a more long-term loss are in Sales. Sales is always the main thing to go in a recession.

I'm guessing a ton of cars like this McLaren will be at auction in 2 months. No payment deferral is going to make up for lost commissions over the next year.
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