By on March 12, 2015

Ally NYSE Trading Floor

Though most lenders aren’t comfortable with the idea of 84-month auto loans, Ally Financial is going full steam ahead with such loans.

Automotive News reports the former financial arm of General Motors — joining Toyota Financial Services in the seven-year lending game — is taking on 84-month loans because, per CEO Jeffrey Brown, the lender hadn’t taken enough risk over the past two to three years. Representative Gina Proia adds that the loan terms would be offered to well-qualified consumers in 24 states in 2015 as part of Ally’s commitment “to offering competitive products designed to help dealers provide their customers with a variety of options that meet a range of consumer credit needs and monthly payment preferences.”

However, Ally and Toyota Financial are among the only ones to offer such terms, as most lenders want their customers to come back more often. Financial observers, meanwhile, are watching longer-term loans with a cautious eye, citing concerns of risks to the United States economy down the road if things were to follow the same path as the housing bubble in 2007 and 2008.

Moody’s Analytics senior director Cristian deRitis is among those observers, though he isn’t worried about the risks attached, citing higher lending standards for 84-month loans, the small market size compared to the overall auto financing market, and the consumer base for most of the loans coming from credit unions, whose members don’t fall into delinquency often.

Speaking of the overall market, the average length for an auto loan is 66 months for new vehicles in Q4 2014, 62 months for used models. Both figures are up one month over the same period in 2013.

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60 Comments on “Ally Financial Offering 84-Month Loans Amid Industry Risk Concerns...”


  • avatar
    DeadWeight

    38% of new GM vehicles are being sold to subprime consumers.

    Similar numbers on the FCA & Ford front – and I’m sure Hyundai, et al. are engaging in a parallel sales push.

    Without subprime – and often very SUBprime sales – how would happy ti es be here again?

    Fire sale on 2 to 3 year old car/trucks beginning next year stretching into 2019 and beyond.

    (just make sure there is oil in the crankcase & coolant in the reservoir)

  • avatar
    tuffjuff

    Wait, Toyota offers seven year loans? Wtf?

    • 0 avatar
      highdesertcat

      Yup! My best bud recently bought an Avalon XLE and the local Toyota dealership begged him to take out a loan on it through Toyota financing. My bud’s FICA score is 826, so he tells me, so getting a loan was not a problem, except for his age (68).

      He didn’t bite.

      But while at the Credit Union earlier that day, to transfer money from his Savings to his Checking account to write a check for a new car, the senior loan officer of the credit union came out and asked to speak to him and beg him to take out a loan against his savings account, instead of paying with a check for the full amount of that new car.

      It’s crazy out there. Makes me want to run out and buy a new car or truck.

      NOT!

      My buddy’s philosophy about financing is pretty close to mine. If you finance, you’re stuck with a lien holder on the title AND you have to buy expensive full-coverage insurance.

      If you buy something outright, you have less expense and you can replenish your savings account without duress or repayment schedule.

      • 0 avatar
        Megaqwerty

        But by taking a loan versus paying in cash, you can invest the cash you didn’t spend on the car. If the market returns at a higher rate than your loan accrues interest, it is better to take a loan than it is to pay in cash.

        Although the market isn’t growing particularly well right now, it is still very easy for portfolios to beat most interest rates.

        • 0 avatar
          highdesertcat

          Megaqwerty, I’m no longer invested anywhere and don’t care about the return I get on my money in the bank. It’s next to nothing.

          I got out at the top of the market and by mid-2008 I was fully divested.

      • 0 avatar
        michal1980

        So you’d buy a new expensive car with cash, and not buy full-coverage insurance?

        • 0 avatar
          highdesertcat

          Yep, been doing that since I started buying new cars outright, or any of my other cars, as well. When I financed, I paid through the nose for full-coverage insurance. Since 2008, when we bought our first car outright, we quit doing that.

          Where I live full-coverage insurance is a waste of money, unless you have a lien-holer against the title. Then it is a must.

          Traffic is very, very light out in the desert, and in all my 68 years of living I have NEVER had any insurance company have to shell out any money on my mistake.

          I’ve had people run into me, but their insurance company took care of the bill.

          The best one in my experience was GEICO. No questions asked, they furnished me a rental, fixed my car at one of their repair locations, and it was a great experience.

          That was years ago though. I don’t know what it’s like these days.

          The worst insurance company was State Farm, when one of their insureds t-boned my wife’s Caprice, with her in it.

          • 0 avatar
            krhodes1

            I even keep full coverage on my $6-8K beater Range Rover. Here it only costs me $150/yr for collision on it. Which is actually more than collision on my BMW or FIAT – go figure. Still pocket change. I pay less than $1000/yr for full coverage on four vehicles, with much higher than state minimum liability coverage.

            Cheap insurance, one of the perks of being middle-aged and boring.

          • 0 avatar
            highdesertcat

            Minimum insurance, that which my state requires all drivers have as a minimum on their vehicles, costs me ~$52 every six months on my $1 1989 Camry V6.

            On my 2011 Tundra it is ~$75 every six months and the 2015 Sequoia is ~$100 every six months.

            The 2012 Grand Cherokee costs me ~$68 every six months and the 2008 Highlander ~$61.

            I guess the varying rates are because of the weight of each vehicle and the possible damage they could inflict on another vehicle in case of a collision.

            But the billing is easy. The Grand Cherokee, Highlander and Camry are on one billing and Proof of Insurance form, billed on Jan 1 and Jul 1, the other two are on a separate billing and Proof of Insuranceform, billed on Nov 11 and May 11.

            Registration in New Mexico is also easy as pie, and I always renew for two years at a time; $75 per year for the Tundra, $65 per year for the Grand Cherokee and Highlander each.

            I didn’t pay for the Camry yet, and the business picked up the costs for the Sequoia.

            Were I to choose full-coverage insurance, my costs every six months would be astronomical.

          • 0 avatar
            mechaman

            Oh! State Farm again? Seems I hear that over and over again … the thing I was warned about was that if you BOTH have SF, you better get your claim in FIRST. Don’t know if that’s true, but, ain’t taking NO chances with it…

          • 0 avatar
            highdesertcat

            mechaman, I’m not selling auto insurance and I am insured with USAA, IMO the best insurance company of any and all kind.

            Next in line I would rate GEICO. My experience with them after one of their insureds ran into our car was absolutely fantastic! The GEICO adjuster came to my house, got me a rental for the duration, and took charge of having our car fixed at one of their body shops.

            When I lived at home in Huntington Beach, CA, during my adolescent years, my dad had State Farm because the agent was a personal friend. So after I joined the Air Force and left home, I also started off with State Farm. Their rates were very high for a poor, young airman. Too high!

            So after my wife and I got married in 1966 I cancelled my State Farm coverage and we continued with her GEICO coverage, mainly because I went to Viet Nam for 13 months and would not be driving anything stateside.

            After I got back from Viet Nam, neither GEICO nor State Farm would have us. Don’t know why. We never had a loss. Maybe it was our age, < 25 years of age.

            We got Farmers/Century of AZ to cover us and stayed with them until USAA sent me the nicest invitation I ever received from anyone.

            IIRC, it read, "Dear MSgt Cat, we are proud to announce that we have opened up membership of USAA services to all retired service members and invite you to join our organization with all the priveleges therof." Or words to such effect.

            Been with USAA ever since and have ALL my coverages and insurances with them. Best rates too! Great credit card with super military discounts, high credit card limits (mine is $25K), great rates, helpful new-car buying service, etc etc etc.

            During the past ten years or so, I have heard nothing but bad comments about State Farm. Of course State Farm is limiting their pay-outs to protect the interests of their shareholders, but some of the rate increases according to my friends who used to be with State Farm, have been unreal.

            And the burden is on you, the insured, whenever you have a loss and file a claim with State Farm, even if you weren't in the car when the damage happened by a hit-and-run driver.

            From what I have been told, you really have to stay on State Farm's case in order to get anything done, or get a settlement.

            Not my worry anymore though,

          • 0 avatar
            mechaman

            highdesertcat, I heard that! The first story I heard about SF came from a guy who had been hit twice by hit and run drivers – he wasn’t even going to file a second claim with SF, just fix the damage himself, and they cancelled him. Said HE was the risk! My family has had Allstate for a long time, and they’ve done VERY well by us. A woman in the neighborhood let her son play unattended out in the street: he slipped off his skateboard in front of my wife’s car while she was rounding the corner. Result, a broken leg, not much else. Then the woman tried to extort us. Allstate had everything airtight when the court case came up – they brought the boy to court in a wheelchair. Too bad the investigator had a picture of him running around the street (again) from just a day earlier …

          • 0 avatar
            michal1980

            highdesert – a fool and his money are soon part.

          • 0 avatar
            highdesertcat

            mechaman, an experience such as yours is yet another reason why so many East coaster people are moving to the wide open spaces of the Great Southwest. They just want to get away from other people.

            One guy I know moved here from New Jersey. On his 65th birthday he handed over his business and his house to his son and headed West in his Towncar. What made him settle out in the desert of New Mexico is anyone’s guess.

            My best bud since 1965 Air Force Basic Training days has been with Farmers insurance since he retired from the US Air Force in 1985. The reason he changed from State Farm to Farmers was because State Farm dropped him.

            No good reason was given for State Farm to drop him but to say that State Farm had chosen not to renew his insurance. No accidents. No claims. No losses. No speeding tickets – the guy drives like a snail could outrun him.

            So we speculated (he and I) that it was because he was no longer on active duty, and being retired generally means a lot more miles of travel for leisure (which he did, does, and will continue to do as long as he is able.) So, he must have been an increased risk to the assets and shareholders of State Farm.

            He and his wife rack up some serious miles, traveling. In fact, several years following 1985 he traveled more than 24000 miles per year. But he never had a loss or accident.

            But State Farm is the only company that I know of that fights having to pay out claims, like after Katrina or the Super Storm on the East Coast, and maybe some other disasters as well.

            I know that for me USAA is the answer to all my insurance wants and needs.

            And……, members can buy a new or used car through them, finance it, insure it, get mortgage financing, homeowners insurance, recreational vehicle insurance, all at better rates than at other insurers.

            Works for me!

  • avatar
    mikey

    A 7 year car payment..?. Right, so your going to upside down, for 4-5 years. I don’t care what vehicle you choose, your going to be into tires, brakes, fluid changes, etc, while your still making payments.

    I understand where a lot of folks, for one reason, or another, want or feel the need to drive a new car. With a 7 year loan, your vehicle will be a long ways from new, and you will still be making payments.

    Personally. I found a 5 year loan too long. Three years in, and I regretted it. I wish I had leased instead.

    In fairness, that was more than 10 years ago. The automotive world, and the financial world, has seen dramatic change in that time period.

    What hasn’t changed, is that 7 years is a long, long time. If your 29 years old, you will be 36 before your payments are done. Life can take a lot of twists, and turns, in a 7 year span.

    If it was me ? I would still choose a lease.

    • 0 avatar
      highdesertcat

      And for the more mature buyers, a 7-year loan could mean that they won’t be around to make that final payment.

      You’re right, ever since the Great Recession of 2009, things have changed in the universe of auto financing to the point of it being absurd.

      All in the name of getting people to buy overpriced cars.

      If demand for new cars and trucks were to plummet today, for whatever reason, we’d be amazed at how much money the OEMs would put on the hood just to move all that iron.

      • 0 avatar
        VW16v

        My dad sold RV’s for 30 years. 80 year old customers would finance for 15 years with a insurance policy on if they due the loan would be paved off. Then leave the RV to spouse or kids. It was uncommon I. The 80’s and 90′

        • 0 avatar
          highdesertcat

          Yeah, many lenders still require that term life insurance coverage from “older” buyers, like those sixty years old and older. Pretty common practice.

          But the added life insurance coverage for the declining balance of that loan can be very costly.

          I don’t have the exact figures for the added expense, because I never financed after 2008.

      • 0 avatar
        VW16v

        Those RV

      • 0 avatar
        VW16v

        Crap this sucks sometimes on cell phones. It was not uncommon in the 80’s and 90’s for people to finance $80-100k RV’s with those 15 year loans. Insurance on the loan would cover if they kicked the bucket.

        • 0 avatar
          krhodes1

          Boats are worse. I have a buddy with a *20-year* loan on a $60K boat, plus some negative equity rolled in from his previous boat that he traded. A few years ago he had a kid, bought a house, and wanted to sell the boat. He was so far underwater on the thing it might as well be a submarine. But the payments are low, low, low! I shudder to think how much that thing will cost him with all the interest. The rate is not all that cheap either, 6-7%.

          Especially here in Maine where the boating season is only about 3 months long, a new boat makes a new car look like a grade-A investment.

          • 0 avatar
            Lie2me

            20 years on a $60K boat. That is beyond dumb. Does he have any time shares to go with it? That could’ve been that kid’s education

          • 0 avatar
            hgrunt

            I wonder what his monthly payments were, in that case, and what associated expenses end up being.

            He may not mind, because he doesn’t have to go through the trouble of renting, and may go often enough to make him feel like he’s getting his money’s worth.

            I’d love to figure out what the break-even point would be, between the payments versus renting.

          • 0 avatar
            VW16v

            Damn, did not know about 20 year loan for boats. At least the RV’s were an investment for the family after the owner passed away. Well, investment that lost 1/3 its value the first year. But, the insurance would pay off the loan. In fact I remember him telling me about a 92 year old that purchased a $120,000 motor home with a 15 year loan. They even had to add large o2 tanks for the sale. Guy wrecked it with in 2 months then died a few months later. RV was payed off, and his kids eventually inherited the motor home.

          • 0 avatar
            vent-L-8

            the phrase “underwater on the boat” made me laugh

          • 0 avatar
            krhodes1

            At 6% that’s about $500/mo if he actually borrowed $70K. Maybe less, he may have gotten a discount when he bought it, I don’t know the exact details. But just colossally dumb, he could have bought one just like it like-new used for 1/2 the price or less. But like some people with cars, the first boat he bought was a used boat and he had problems with it. Which led to the first new boat which he also had problems with. Then a bigger boat that ended up being too big, that was traded for this one. Hence the negative equity.

            His family has a lake place, so it costs him very little to keep it, considering how expensive cars are to register here, boats are cheap. He does use it a lot. I think trying to sell it was a knee jerk reaction to OMG, I have a kid! The kid was NOT planned… Oops.

            It is a GREAT deal for me – he has nothing to tow it with, so I tow it with my truck as needed and he lets me use it whenever I want, I just have to put gas in it.

        • 0 avatar
          JimC2

          “Crap this sucks sometimes on cell phones.”

          When your post suddenly stopped in mid-sentence I thought maybe you needed a comment insurance policy… but fortunately it looks like you’re still alive to finish the

          • 0 avatar
            VW16v

            The issue is partially my 2 yo phone, I think they build them to self destruct after 2 years. But, this site can have issues.

          • 0 avatar
            JimC2

            I know, I was trying to be funny.

            My 2+ yo phone seems to also have automatically downloaded the secret app, “Nothing is wrong with me but I’m going to randomly not work so that you spend money on a new phone.”

            That was a good point about loan insurance for really old people buying stuff. Never heard of that, it makes sense, you learn something new every day, and one day I’ll be that old person.

          • 0 avatar
            Lie2me

            Yep, my phones generally quit the day the contract is up

  • avatar
    Speed3

    This can’t make good financial sense. Sure, the interest rate plays a key factor on how long to make a car loan term, but 84 months?

    • 0 avatar
      DenverMike

      36 months? Cash? Does you FICO $UCK? So with your excellent credit and zero (to negative interest rates?), why not drive around with someone else’s money for 7 years while gambling your own on the stock market? Ya CRAZY???

      That’s not my advice, but about all you get around here for asking.

  • avatar
    kincaid

    Just bought a 3 year old used car and financed thru a local credit union. Got a 5 year loan which means the car will be 8 years old when it is paid off. Banks do crazy stuff when money is free. I am not subprime. Got stellar credit but the interest rate was super low.

  • avatar
    JLGOLDEN

    My recent car purchase was partially steered by my insistence that I only have a 48 month loan. This meant that I would max-out the total drive-out price at $40K. Though I lusted for a 2015 Tahoe LTZ, it would be a SIX year loan. That is just insanity, since I pile on 25K miles per year. Back to reality: A loaded 2015 Impala LTZ serves us beautifully.

  • avatar
    fincar1

    On our last two Accords we’ve taken the five-year note, and then paid like $100 extra each month. We like the flexibility this gives us in case we want to do some traveling or some dentist bills pop up or something like that, we could cut back to the normal payment for a month or three. But in practice we haven’t needed to do that and each car got paid off well ahead of schedule.

    • 0 avatar
      sgeffe

      Did that on my ’06, but on my present car, the trade-in didn’t work out as well as I would have hoped, and I should have taken the down-payment and trade and socked it into SOMETHING, then had my broker have the dealer write up a two-year lease with a buyout, since I’m at the upper end of my “comfort” level on this note, much less being able to pay ahead anything significant.

      Might re-fi the original note to a new one with another year tacked on, then pay THAT off early, only a few months later than the ORIGINAL note.

  • avatar
    krhodes1

    I’ll take the longest loan duration that offers a decent interest rate. Currently, BMW is offering the same rate on 60 and 72 month loans. It’s nice sometimes to have the flexibility of a smaller payment. It’s a pretty good chunk of change on a $40K note. I assume the interest rate on an 84 month loan would not be enticing, even with a platinum plated credit limit.

    BUT, I will have it paid off in 4 years regardless, as I won’t owe money on a car out of warranty – the current one got paid off at 3.5 years. I also always put enough money down to never have to worry about being underwater. Just my own philosophy.

    • 0 avatar
      sgeffe

      “..always put enough money down to never have to worry..”

      ^ This. Although, this last time, I learned to take ANY on-line value guesstimator with an entire mine’s worth of salt!!

  • avatar
    johnhowington

    Why not a 10 year note? The profit would be astronomical, I dont much downsides for the lender. Enjoy that point of view.

  • avatar
    shadow mozes

    Hmm. I always thought that Ally financial was just a big scam from the look of their ads.

  • avatar
    PandaBear

    I can see it being ok on cars that are low in depreciation (i.e. a Corolla or a Civic) but for luxury cars? Come on now, it will for sure be up side down near the end of the loan term.

  • avatar
    superchan7

    If you need a 7-year loan for the most basic transportation (say, a $15k new car or an $8k used car), you’ve got bigger problems than a predatory lender.

    • 0 avatar
      mechaman

      I’m not surprised at this, just at who’s doing it (the companies). A friend of my father used to comment on the indie sellers you see on the corners and such in Chicago – he called them ‘Poor man’s nightmare’. Personal experience. I wouldn’t doubt that ‘Harry Hunnicutt’* will spot you 84 months for one of his ‘Honeys’, now. As long as people need a car, this will go on… (*A Twilight Zone reference)

  • avatar
    TW5

    Why do people use credit? It’s like hiring a professional nag. Why in the world would you pay someone to make you regret buying something?

    A home is a bit different but not much. If you pay the minimum payment over 30 years, and you relocate for work every 10 years, you’ll pay nothing but interest for your entire life.

    I question any democracy that teaches people the hidden symbolism of Shakespeare, but doesn’t educate kids how to balance a checkbook or calculate compounding interest.

    • 0 avatar
      krhodes1

      I use credit when the cash can make me more money than the credit costs me. Thus even though I could have bought 10 new garden tractors last year for cash, I took the 18mo 0%-interest deal from Home Depot. Because that $2K is making me about 6% a year. I set it to auto-pay from my checking account monthly and let it pay itself off. Similarly, technically I could pay cash for the new car I have on order. But why would I, when BMW or the credit union only charges 2% and my investment account is making 6%? That’s free money! Of course, I would make more by not buying the car at all, but that is an entirely different discussion. And the calculus was very different 10 years ago when auto loan interest rates were more like 8% than 2%.

      The VERY best time to borrow money is when you don’t actually need to borrow the money.

      I do try very hard not to buy things I can’t afford as a general rule. I never regret anything other than I wish I still had a couple cars I have sold over the years.

      • 0 avatar
        hgrunt

        I keep forgetting that one can use the arbitrage with a very interest loan!

      • 0 avatar
        TW5

        You don’t make money buying consumer goods. Creditors have merely created an irresistible specious argument that makes people feel wealthier as they go broke. Yes, if you convert $40,000 of investment property to a car, you lose money. If you borrow $40,000 and you buy a car, rather than investment property, suddenly you make money? *slow clap*

        It’s been heads 10 times, this one must be tails. I don’t want to cut-and-run from this bad home purchase because I’ll lose my earnest money. Look Ma, I’m making money by financing a new BMW.

        It’s all the same.

    • 0 avatar
      LectroByte

      @TWT5 – If you get a 15 year loan and make one extra payment every year towards the principle, then you own that home in 9 years, as I did. Not sure I would have ever saved up enough to buy a house otherwise, as rents always seem high. Obviously you are living in your mom’s basement, or you would know all this already.

    • 0 avatar
      mkirk

      Because I don’t have cash for a home and I see a mortgage, even of the 30 year variety as better financially than paying rent. Additionally my mortgage is cheaper than rent, and unlike the rent doesn’t go up every year. Yes, I’d like to pay cash for my home but it would not be easy to save that money while paying someone rent. Plus in my market I am building equity I’ll likely get back if I move…not so with the rent. As it is a new house it doesn’t cost much to maintain. So yes, I’ll take that nagging. Debt free is my goal, but it isn’t a religious devotion. Now I would not borrow for 7 years on a car. Unlike the home it isn’t going to appreciate and I can afford cash outlays to purchase outright or finance a minimal amount. New car payments on a 7 year old car is not a pleasant thought though

    • 0 avatar
      el scotto

      Most of the B&B know that almost any vehicle is a depreciating asset. An auto loan is the price you pay to play. So no, it’s not nagging it’s the enjoyment we get from our ride be it the commuter beast of burden, mommy missile, or something more sporty. This democracy does offer the chances to learn the nuances of Shakespeare and compounding interest on the ledger sheet. It all depends on who wants to learn it. Let me ask you this: If your dentist said you needed $7,000 worth of work on your teeth would counter with “only do $800 worth this time” or would you take the interest free financing? Nice teeth, nice ride; the choices and expenses are yours to make.

  • avatar
    AnotherMillenial

    In some cases even 96-month loans are being offered. At the rate modern cars are advancing in terms of styling, safety, connectivity and the “self-driving”/drivers-aid tech, making payments on a 2015 Camry, for example, will feel like dragging an anchor around in 2022 or 2023.

    If you’re going to be making seemingy infinite payments and are the on the younger side of the age spectrum, why not just bite the bullet and lease (if you can afford it).

    96-month loan link
    http://www.usatoday.com/story/money/cars/2015/03/04/5-things-we-learned-from-february-auto-sales/24329517/

  • avatar
    JimC2

    I’m kinda mixed on 84-96 month car loans. They’re not for me, I’m not the target market for them, and they don’t make economic sense to my personal finances.

    As for the loan period to car-is-reliable ratio, they actually make as much sense as 48-60 month loans and leases from yesteryear when mass market cars didn’t last nearly as long as nowadays.

  • avatar
    mictdxxx

    A friend of mine went to pay cash for a new truck, but in order to get the rebates offered he had to finance at least $5000. They force you to finance with their lending company.

  • avatar
    donutguy

    I drove beaters for 20 years while my kids were in high school and college. I’ve been putting money aside for a new car the whole time and last year I bought (and paid cash for) a 2014 Elantra.

    Not the most sporty car out there……heck, it’s probably a little boring, but it only cost me a touch over 19k including taxes and tags.

    I still have a good amount of money leftover in my car fund, in the next couple years- I plan on buying a few toys :-)

    • 0 avatar
      highdesertcat

      I went halfsies with my son on his daughter’s brand new 2011 Elantra bought in May 2011 and it held up remarkably well for her years of commuting to college. She sold it last summer, after graduation.

      IIRC, we bought it for ~$17K plus tt&l. And when she sold it, she got $10K for it, minus the cost of the four new Pirelli 9000 tires I had her get from Discount Tire. It had ~ 70K on the odo when she sold it.

      Other than oil and filter changes I did every 3000 – 5000 miles, there were no issues and no warranty problems.

      I would recommend the Elantra to anyone, based on our ownership experience.

      • 0 avatar
        mkirk

        My wife’s Tucson is based in the Elantra and I would back this up. 95,000 and its been solid. I need to replace a couple of suspension bushings but for a car that lived half its life in upstate NY it has been great.

  • avatar
    DeadWeight

    Anyone who is older than 32 and who doesn’t understand that we’re merely in the 3rd major asset bubble blowing (asset inflation; this time financial assets, mainly, such as equities AND bonds – best trick to do this simultaneously) period of central bank asset inflation AND consumer debt releveraging (car loans, student loans, re-fi’s, etc.) of the last 17 year period hasn’t paid attention to how these cycles begin and end.

    We’re locked into a perpetual debt ramping up cycle in developed nations, rather than normal business cycles, now, where central bank monetary policy produces bigger booms (though wealth shifting and more transitory) and bigger busts than a more normal or natural aggregate demand & supply cycle (based on organic economic marginal productivity) ever did.

    This cycle of central bank monetary madness will end the same way the 1993-2000 and 2002-2008 ones did.

  • avatar

    84 month terms are not ideal but sometimes necessary to help bury negative equity. If purchasing with no trade, I would never recommend going over a 60 month term since you want to be able to pay off that asset parallel to its amortization schedule in black book. Don’t spin your wheels in mud and end up paying more in interest than principal!


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