Tag: Financing

By on April 15, 2013

8 years to pay off a car? A report by the Wall Street Journal claims that in Q4 of 2012, the average car loan stretched out to 65 months, or just over 5 years. Loan terms were being stretched out over increasingly longer terms too, with credit firm Experian reporting that nearly 1 in 5 car loans had terms between 73 and 84 months long, with some stretching for as long as 97 months.

(Read More…)

By on April 9, 2013

When Lee Iacocca was a Ford regional manager, he helped pioneer auto loans. Consumers could buy a 1956 Ford for 20% down and $56 a month. The loans were paid off in just 36 months. In the final quarter of 2012, the average term of a new car note stretched out to 65 months, says Experian. 17% of all new car loans in the past quarter were between 73 and 84 months. A few were as long as 97 months. This trend bears huge risks for consumers and industry, says the Wall Street Journal. (Read More…)

By on April 3, 2013

Anyone looking for an anecdote illustrating the QE-fueled madness that is subprime auto lending, take a look at this Reuters report on what constitutes a down payment in the subprime world.

And still, though Nelson’s credit history was an unhappy one, local car dealer Maloy Chrysler Dodge Jeep had no problem arranging a $10,294 loan from Wall Street-backed subprime lender Exeter Finance Corp so Nelson and his wife could buy a charcoal gray 2007 Suzuki Grand Vitara.

All the Nelsons had to do was cover the $1,000 down payment. For most of that amount, Maloy accepted Jeffrey’s 12-gauge Mossberg & Sons shotgun, valued at about $700 online.

(Read More…)

By on March 6, 2013

Long-term auto loans, leasing and sub-prime financing all saw increases year-over-year from 2011 to 2012, according to a report by Experian, a consumer credit rating agency. While typically a dry and detail-oriented subject, the area of auto financing gives us some insight into the nature of the new car market and even the economy itself.

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By on March 4, 2013

When you have 120 dealers looking at the same exact car on a Monday morning, you have three options if you plan on buying a car.

1) Bid

2) Watch

3) Leave

After I saw a 2003 Infiniti FX35 with 220,558 miles sell for $9100 plus the auction fee, I left for good.

(Read More…)

By on February 18, 2013

I told you that I would report back to the TTAC faithful when something new came up.

Well, for quite a few weeks there has been the usual distribution of dominance when it comes to high mileage cars that are curbed by their owners. 70% to 80% of the vehicles in the Top 25 of trade-ins mileage wise (out of 6000+ a week) were either Ford and Chevy trucks, Honda cars, or Toyota anything.

This week the streak is broken. Thanks to two Saturns which managed to cross the 400k mark.

(Read More…)

By on January 24, 2013

“Aaahh Steve? My rig caught on fire.”

At first I thought about oil rigs in the Gulf of Mexico engulfed in an endless torch of black smoke and molten metal.

Then I realized that the repo driver was talking about his own truck. In all my years of dealing with repo companies, I had never known an auto recovery company, big or small, that was neglectful enough to turn their money maker into an ashen shell.

Before noon I would be awakened by another surprise.

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By on August 28, 2012

Whether you drive a $30,000 or a $1,500 a car, one variable in life stays constant.

You want to minimize your costs.

(Read More…)

By on August 11, 2012

 Courtesy of flickr.com  Photograph taken  by hinterland-1

 

A 1995 Volvo 960. Supple leather that made long trips easy. Great safety and visibility. It represented what I thought would be the perfect family car.

I financed it quick enough. But then the troubles began.

(Read More…)

By on August 2, 2012

 

First the guy called. Then his wife. Then the repo driver.

The truck had been out in front of their house for nearly a half hour. Lights flashing. Neighbors peeved, and humiliation aplenty.

“Steve, I can get both cars. What do you want me to do?”

(Read More…)

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