By on February 4, 2019

2019 Ram 3500 Heavy Duty Limited Crew Cab Dually with RV trailer

Image, for a moment, that the trailer pictured above is filled with debt. It’s a good representation of the average new vehicle purchase.

Looking at last month’s stats, you’d have to go back to the safe and comfortable pre-Twitter era to find a January in which fewer people got their hands on a zero percent new vehicle loan. January 2006, to be exact.

Last month wasn’t just a departure from a decade past — the car buying landscape appeared quite different just a year ago, all thanks to rising interest rates and the perpetual upward creep of new car pricing. Data from Edmunds helps break down the differences.

Suffice it to say you’re likely paying a lot more, but you’re spreading it out over a longer term.

Last month, the average new vehicle buyer borrowed $31,707 and financed the vehicle over an average term of 69.1 months. That’s up from 61 months in 2010, and 68 months a year ago.

While a longer term helps get buyers into the vehicle of their dreams, it widens the siphon on their bank account, especially considering the average APR in January — 6.19 percent — was up 1.2 percentage points over last January’s average (4.9 percent). Your average American financed their new car purchase with payments of $551 last month.

Average down payment? $4,191.

As mentioned already, finding a low-interest loan has become more difficult than sourcing a compatible mate online. Only 3 percent of new car buyers secured a zero-percenter in January. It wasn’t all that long ago, explains Edmunds Executive Director of Industry Analysis Jessica Caldwell, that more than one in five Americans could walk away with a zero percent loan. The highest concentration of said loans (22 percent) took place in March 2010, she tweeted.

On the higher end, the number of Americans agreeing to loans of more than 10 percent is on the rise, with 12.3 percent of new-car buyers taking on a double-digit APR in January. That’s up sharply from 9.5 percent of buyers just a year ago.

It’s no wonder why we’re seeing buyers flood the used vehicle market — and why certain segments of that market (mainly, small cars) are rising steeply in value. (It’s also no wonder why American auto loan debt has swelled to nearly $1.3 trillion.) The average monthly loan payment for a used car was $407 last month, Edmunds data shows.

[Source: CNBC] [Image: Fiat Chrysler Automobiles]

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80 Comments on “As Interest Rates and New Vehicle Prices Rise, Loan Terms and Payments Reach for the Sky...”


  • avatar
    highdesertcat

    Truly a harsh reality these days.

    Hence, pay CASH if you can afford it.

    And if you can’t afford it, don’t buy it.

    • 0 avatar
      jatz

      “And if you can’t afford it, don’t buy it.”

      There ya go!

      And if I can’t have a pony, I want a shotgun!

    • 0 avatar
      jalop1991

      No need to pay cash. Start with, if you can’t afford it, don’t buy it.

      But if you CAN afford it–and by that, I mean if you can afford to pay cash like it’s a shirt at Target–then do the math and evaluate on the best way to use that cash.

      It’s likely that if you can afford it, you’re better off in most cases taking the low cost loans that are available to you and letting the cash sit.

      Regardless, it’s just math. Handing over a wad of bills is NOT necessarily the best way to do it.

      But let’s look at things in another perspective: just because you CAN afford it, doesn’t mean you SHOULD. Technically, it’s best to find something used, like a 3 year old severely depreciated yet still reliable something that’s depreciated that much only because people think it’s not worth anything. Great. Let the guy who bought it new, take that hit.

      That is, if you’re just looking for transportation.

      If you’re looking for something specific, that’s a different discussion.

      Either way, do the math with the cash and the loan. It’s not hard. And there’s no hard and fast rule of how to use cash vs a loan, outside of “if you can’t afford it, don’t buy it”.

      • 0 avatar
        highdesertcat

        ” you’re better off in most cases taking the low cost loans that are available to you and letting the cash sit.”

        Why pay more for something than you have to by paying interest?

        And for many people, the source of money is never-ending. So why let it sit? It’s not like you can take it with you when you kick the bucket. I’ve never seen a Hearse with a U-Haul behind it.

        Among ttac’s B&B there are a number of people who pay cash for their car purchases, both new and used.

        Ultimately a buyer has to do what works for them, and theirs. My 21-yo grand daughter recently retired the 2008 Highlander we gave her to use. She bought herself a 2019 4Runner SR5 4×4. Paid for it herself out of the trust her great-grandfather had left her.

        She did the math. What it would cost her, plus the monthly payments if she financed.

        She came to her decision on her own. Write a check for the whole amount. And she did.

        • 0 avatar
          syncro87

          highdesertcat:

          http://noredos.com/wp-content/uploads/2016/12/hearse-pulling-uhaul-4.jpg

          • 0 avatar
            highdesertcat

            syncro87, Thank you. I already have a copy of that, an actual photo-print made at Walgreens, courtesy of my first born who gave it to me for my birthday.

            But thanks, especially for those readers who have never seen it.

        • 0 avatar
          MiataReallyIsTheAnswer

          “She came to her decision on her own. Write a check for the whole amount. And she did.
          —————
          Paid for it herself out of the trust her great-grandfather had left her.”

          That 2nd bit sure makes it easier!

          • 0 avatar
            PrincipalDan

            lolololololololololololololololol

            Gosh if people would just pull themselves up by their bootstraps!

          • 0 avatar
            highdesertcat

            MiataReallyIsTheAnswer, Of course. But that’s why he left her the trust. To do with as she needed to achieve the goals in her life.

            There are millions of people (who can) who do the same for their heirs.

            Some of the financial gurus like FreedMike should write an article about all the financial instruments out there in the wild that are used to underwrite financial transactions of all sorts. That would be educational.

            In my grand daughter’s case, she’s been doing her Mining Engineer internship at Kenecott each summer and the Highlander served her long and served all of us well for the time it was in use, over great distances.

            It was retired with dignity and its parts are sure to live on in other Highlanders as it is parted out by the junk yard that bought it.

        • 0 avatar
          jalop1991

          Regardless, she made the wrong decision, no doubt.

        • 0 avatar
          NormSV650

          Ugh…a 2016 4R SR5 is $27K under 30,000 miles on cars dot com. While a new one is $34K or about the same depreciation of $7,000 my Envision 2.0T saw in two years of ownership before trading it on a TourX.

          I got the dealership to pay off the car and then some which included the sales tax I originally included in the loan and discounted the TourX for about $12,000 in total savings. Not sure if I’ll get that good of savings when it comes time to trade in the wagon or not.

    • 0 avatar
      TheTruthAboutRob

      The problem with the sentiment “Pay CASH if you can afford it, and don’t buy it if you can’t afford it.” is that it permanently disenfranchises those who will never afford paying cash because car prices will increase faster than they can save.

      When one lives on a fixed income, financing is more about gaining time than gaining buying power. To be more specific, paying cash means going without a car for at least another four to six years—in a country which decreasingly assists those without an independent means of transportation (e.g. the only public transportation available to me costs $6 each way, the implementation is so impractical as to imply insult, and the local right wing argues against helping even that much).

    • 0 avatar
      David Mc Lean

      Cash is definitely king.

    • 0 avatar
      raph

      So like .00000001% of people in the US.

      Granted if everybody took your advice we’d be better off for it but the US would go broke and I imagine the oligarchy would just pass a law allowing
      ‘job creators” to bypass the usual indirect payments and just authorize direct transfers from your labor into their coffers.

  • avatar
    cimarron typeR

    I just don’t see people paying APRs as high as mentioned in this article, on most USDM,JDM,KDM vehicles 1.9, 2.9% etc.

  • avatar
    conundrum

    “Image, for a moment, that the trailer pictured above is filled with debt.”

    Sorry, I can only imagine it. Copy edit much?

  • avatar
    NiceCar

    What if you don’t pay cash? I’d urge buyers go back to the older auto purchase norms – and figure out what they can reasonably pay for a 48-month (60 at the most) loan. Many would probably settle for MUCH less car than they envisioned. But, there really are quality cheaper options if you don’t want to have an extra long loan and be upside down for a long time.

    • 0 avatar
      jack4x

      Nothing wrong in principle with a 72 or even 84 month loan. As long as you maintain it, just about any new car will last that term and have value at the end of it. The old days when cars were used up at 5 years/100k miles are long gone.

      That said, staying above water is obviously tougher on the longer loans. Every time I’ve taken one, I’ve been sure to put enough down to avoid being underwater through the term.

      • 0 avatar
        brn

        If you need a 72+ month loan, you need to reconsider your purchase.

        • 0 avatar
          jack4x

          Depends what you mean by ‘need’ I suppose.

          I’ve chosen to take 72 month loans because the interest rate penalty was trivial compared to a 60 or 48 month loan, and I can find better things for my money to do than write a check for a car.

          My personal opinion is that if you’re above water on the loan and earning better than the interest rate with your money, there’s very little downside to a longer loan. If you’re rolling negative equity into your next car and need an 84 month loan to do that, that’s obviously a different story.

          • 0 avatar
            PrincipalDan

            @jack4x

            YES. Money is a tool. Sometimes longer loans make sense within other goals you have for that same money.

      • 0 avatar
        ajla

        The biggest issue with long loan terms is that it tends to turn people into strict “payment buyers”.

        Someone with a $500/month budget and $4,000 could likely get themselves into a brand new & decently equipped Elantra GT over a 36 month term. But, the focus sticks on the $500/month and now they have a 72 or 84 month loan on a Santa Fe Ultimate or a G70 instead.

        Then in 2023, whoops, Omni Consumer Products bought out Intech so your job is being outsourced to Siam and you are going to be in a tough spot to continue covering your car payment.

  • avatar
    PrincipalDan

    I periodically check in on my auto loan to see that I’m paying it off quicker than it is depreciating. As long as I’m doing that, I’m happy. However I also have the discipline to not get another car until the one I have is paid off.

    I’m actually comfortable stretching a loan out to 72 months on a new car if the rate is low (currently my credit union is roughly 3%) and there’s a nice down payment or good value left in the trade in.

    On my current used car I’m nearly paid off and I paid greater than minimum monthly payments to get it paid off faster than the loan term.

  • avatar

    The average is 32k over 69 months ? I know averages are subject to wild misconceptions (Bill Gates moves to your Town, suddenly average income is a million dollars per person) but that is a $463 dollar payment without interest.

    Car prices have slipped upwards, pay in most places/for most humans has not kept pace. This is the result…permanent under water conditions. Rolling negative equity into the next loan…gaak.

    • 0 avatar
      R Henry

      When I first learned that auto finance companies are willing to roll negative equity into a new car loan, I was gobsmacked. “Who could be so dumb?” I wondered? My neighbor for one……

  • avatar
    JMII

    No thanks I’ll stick to buying used, having a decent trade in plus a big chunk of cash down. I’ve paid off my last two vehicles early and will likely manage the same with with my current car. I’d rather have a nice, slightly older car that is paid off then some shiny new trinket with sizable debt attached to it. Given the massive depreciation that occurs on new vehicles I don’t even consider a car until its at least 2 years old. Another good thing about doing this is any problems that might pop up are normally identified in this time frame so you know which models to avoid.

    • 0 avatar
      jatz

      Last Thursday I spent an entire day waiting for a plumber (frozen pipe) and a tow truck (stranded car). Did much internet research on a possible new car then looked at CPOs.

      They’re so close in price for anything I’d want that, especially here in Frostbite Falls, new makes more sense.

  • avatar
    Add Lightness

    I figure for every $100 I save in life, I can retire one day earlier.
    So… do I get that new vehicle or do I live with what I have and stop working 60+ weeks sooner???

    • 0 avatar
      SCE to AUX

      Sooner than what?

      Since you’re the type to do such math (and I don’t disagree with it), do you have a target nest egg size? If not, it sounds like you might retire at a standard age, but with more money.

  • avatar
    SCE to AUX

    “…the number of Americans agreeing to loans of more than 10 percent is on the rise, with 12.3 percent of new-car buyers taking on a double-digit APR in January”

    I’m stunned, although I shouldn’t be. Two million+ buyers took out a loan higher than 10% last year?! For a car?! (or anything for that matter)

    What is the default rate on these 10%+ loans?

    It saddens me that we have so many greedy banks combined with so many self-deluded buyers, although the banks are merely protecting against default risk.

  • avatar
    dwford

    “and why certain segments of that market (mainly, small cars) are rising steeply in value.”

    So you’re saying I did the right thing last year buying 3 Chevy Cruzes. Is there ever a right time to do that?! LOL

    • 0 avatar
      el scotto

      Park one, seal it in a bubble. Barret-Jackson in 30 years Baby!! Oh heck, I can’t be snarky and mean. They’re perfectly fine commuter beasties. Use them like rented mules until they get stupid miles on them then sell them for cash or just give them to someone who really needs a car.

  • avatar
    Whatnext

    Just the 1% screwing the working joe yet again. Instead of giving them wage increases to keep up with the increasing costs of cars (or homes) they give them more credit rope to hang themsleves with.

    • 0 avatar

      That is part one. Part two is to get your tax rate lowered, then loan your money to government as Bonds instead of losing it as tax. Confident workers are a lot harder to push around.

    • 0 avatar
      SCE to AUX

      You have it backwards.

      I’ll happily loan Working Joe #1 $40k @ 5% for his new work truck, because he has good credit.

      But I’ll also loan Working Joe #2 $40k @ 10% for his new Traverse, because he defaulted on his last 3 loans and never pays his credit cards on time. He should be buying a used vehicle for half the price.

      Income isn’t the only measure of somebody’s credit worthiness, and banks *should* charge interest according to risk.

      • 0 avatar
        ktm

        Exactly. The naive (and there are so many on TTAC) believe that giving people more money will solve the problem. It is not about money but knowledge and spending habits. Giving people more money will just mean that they will spend it on more frivolous goods and still take out a 72 month loan at 10% while rolling in negative equity from their previous car.

  • avatar
    R Henry

    If you can’t pay cash, a 36 month loan is as much financing anybody should consider on a car. If you can’t pay for it over 36 months, you most definitely shouldn’t buy it.

    • 0 avatar
      87 Morgan

      That is a nice sentiment R Henry, but none of us really want to live in a depression because that is what you would have.

      The good old days were not all that good. Cars were cheaper to buy for sure, they also only lasted 3 to 5 years and god help you if you wreck.

      Just about every new car or truck on the market today will last 12 years, easy, with normal maintenance and service if you are a bit above average as 12k per year = 144k miles in 12 years. My Suburban looks and drives brand new with 121k on the odo.
      So, the math is not all that bad really *if* you buy the correct car and keep it. 5 or 6 year loan and 5 or 6 years of payment free driving. $550 per month for 5 or 6 years, figure 2 mechanical failures in the back half of $2500 per. That is 4 months of payments x2. You are still ahead.

      • 0 avatar
        RHD

        How far back are you looking to define the “good old days”?
        If you are referring to a car rusting apart in 3-5 years, that’s one thing. Wearing out in 5 years or less, anything built after about 1960 should have lasted at least 10 years. Anything built after 1985 would last 15-20, and since 1990, 20 years minimum, unless it was poorly designed or had a lousy automatic transmission.
        12 years for a new car or truck on the market today is a very low bar, indeed. Anything that won’t make it past 200K with a minimum of maintenance is greatly subpar.
        If paying cash instead of making payments with interest for the better part of a decade leads to a depression, then you can blame folks like me for our current high unemployment rate and lack of industrial production.

  • avatar
    NG5

    Staggering average loan length to me. Would love to see the median too. Also, for curiosity’s sake, the minimums and maximums in the data they have. Does anyone opt for a one year or six month loan?

    • 0 avatar
      arach

      Yes.

      Or leases. 1 month and 6 months leases are hot right now…

      But they are tax games for the rich. You see, Bobby CEO wants a new Porsche. So he signs a 1 month lease agreement with the Porsche dealer as his company car. 1 month later, he has to return it to Porsche and he personally buys it for 40% off.

      12 month loans definitely happen more than you’d guess too. Normally these are people who have the money but are trying to balance cash flow on high dollar cars, or get it to bridge the gap over 2 actual years on trucks

      • 0 avatar
        NG5

        Interesting. I figured short loans could be used to cover gaps for buyers who prefer to use mostly cash and pay low interest cost, or for some other debt-carrying short-term games. Hadn’t thought about lease terms. It would be interesting to see how leasing has changed on the whole as well as new-car loans.

  • avatar
    el scotto

    Lions, and tigers, and bears; Oh My! things cost more!!! We get the; I scrap food off tinfoil/parchment/wax paper and and make a tasty (and free) casserole from those scrapings every month crowd making their comments. Newsflash: Vehicles last longer these days. Nervous? Go with a manufacture’s extended warranty. Most people have to have a vehicle. They will let their house get repossessed, evicted from their rental but still make their vehicle payments. This is not The Truth About The Best Shoes To Wear on Mass Transit. Really confused? Go to Carmax and find out what the extended warranty is on the vehicles you’re thinking about buying. Some may be cautious, some may throw caution to the wind. It’s their money and their freedom on how they spend it.

    • 0 avatar
      Tele Vision

      @ el scotto

      Newsflash: Vehicles do NOT last longer these days; only vehicle loans last longer these days. Seven years to pay off a car?! Insane. Here begins the lesson: Let’s start with a $100,000 car, to keep the numbers easy – extrapolate at will. That car lost 30% of its retail value in the first year. BLAMMO – you’re out $30,000 in 365 days but still paying for a $100,000 car. Assuming usual mileage and wear and tear you’ll lose $7000/year of equity for the rest of the loan. No big D: we all make far more than $7000/year, right? Well, now you’re out of warranty and your $100,000 car – that you’re still paying the SAME note on – is worth $18,000. At best.

      This is how I bought a seven year-old CTS-V sedan for 15% of its original retail price with the cash that I’d actually saved for a Miata. I banked $300/month for a few years and showed up with a bank draft for the Caddy. The car still does everything it did when new – but for a fraction of the cost. A little forward planning is all it takes – and a set of wrenches, honestly. Cheap at the price.

      • 0 avatar
        Mathias

        “That car lost 30% of its retail value in the first year. ”

        Please. Go buy a USED car, and try to sell it back the next day. 30% is about what it’ll cost you if you bought it right.
        The used-car market is efficient. You pretty much get what you paid for. I got my first car loan when I was in my mid-30s… and it was zero percent… we still have that car, 16 years later.
        I don’t regret buying all the hoopties I did when I was young, but the smart thing would have been to buy a cheap car NEW, take out the loan, and spend my time developing my career rather than chasing after and fixing old cars.

      • 0 avatar
        RHD

        Some people just don’t have a good enough answer to the question “What would it take for you to buy this car today?”.

  • avatar
    markf

    Rates will be back down to zero soon enough, even though they are barely above zero and no where historical norms. The federal Gov debt is not sustainable with normal interest rates and as soon as the current asset bubbles start to deflate it’s back to ZIRP, this time for good.

  • avatar
    ttacgreg

    From what I know of what is selling in the new vehicle market, it seems no one is really looking for basic practicality. It is evermore all about glitzy “luxury” gadgetry, and far more vehicle than needed (pickup trucks that are half the size of school buses, I’m looking at you). It’s all about image and ego statement, sheetmetal fashion, and attempted greed fulfillment rather than what is needed to get from point A to B. Going hugely into debt for all of this? No thanks.
    Quebec’s penchant for basic cars, frequently mentioned here on TTAC, appeals to me.

  • avatar
    427Cobra

    interesting discussion… I went through this last October when I bought my Focus ST (a leftover ’17). I wasn’t crazy about carrying a 2nd car loan, but my ’16 Ram 2500 (crew cab short bed 4×4 6.4L hemi) was financed at 1.99%, so I didn’t see the point in paying it off… {only owed about $10k). The dealership offered 4.99% on the focus, & said the deal was contingent on dealership financing. Pish. As soon as I got the DMV paperwork, I went to my credit union & refinanced at 2.75%. My current thought is to sell my ’04 Corvette Z06 (9600 miles), pay off the truck & the Focus… and buy a cheap (used) Mustang GT to play with. We shall see… it’s a mental thing, but would be nice to have no car loans again.

  • avatar
    SaulTigh

    I’ve lived my entire adult life in a low interest rate environment, nearly. My student loans were something like 6.5% when I got out of school, rode the market down and consolidated south of 4%. Played the 0% or nearly credit card transfer game like a pro, back in the day. My mortgage is fixed at 3.375%, my last car loan was 1.94% for 75 months. Paid it off in 50. Currently have no car payment and love it.

    The point of all this is, I pretty much refuse to sign up for a car loan over say 3%, so I guess I’m out of the game until the next crash.

  • avatar
    seth1065

    My 2 cents , the longer loans screw most folks bc since it seems most folks “need” the 22 inch wheels that all car makers seem to think they want so they make them standard , plan on 1000 bucks for tires the same month you gotta make payment number 62, that is gonna screw with folks, I usually buy used for me and new for my wife, no loans over 48 months but f it made sense I guess I could go longer but try to stay at 48. I have bought new for me and did not put a dime down and did a 48 month loan on my VW tdi wagon, vw bought it back after I had it paid off. We have had my wife Pilot since new when we bought it in 05, it will become sons first car this summer and she will get a Cpo, volvo, Infinity Audi something sedan , skipping new this time, with University Bills coming in 18 months or so want to save on big purchases. Most folks can not afford a long loan, some need to bc you need a reliable car to get to work , hopefully this folks can buy a decent car that gives them many years after their loan is over but with a 72 or 84 month loan the odds are against most folks.

  • avatar
    87 Morgan

    The average down payment was $4,191? That seems really high. Does that include rebates, seems like it has to?

    Interest rates have crept up no doubt, however for a lot of manufacturers the requirement to obtain the rebate, or ‘down payment assistance’ is that you finance through the captive finance arm (GM Financial, Toyota Motor Credit etc.). This drives the interest rate up as we all know nothing is free. I believe the captive finance companies bank on a certain percentage not refinancing these loans with their credit union for a lower rate which is obviously the intelligent thing to do. Secure the rebate, take the financing, refinance the factory loan with a credit union loan. It adds a step to the process, but for 4k why wouldn’t you?

    • 0 avatar
      PrincipalDan

      Could have also included trade-ins. My wife’s last car purchase the $3000 that we got for her old Vibe acted as a down payment as far as the purchase price was concerned.

      I’ve noticed that for certain manufacturers there are odd little incentives creeping back in. Like most of last month there was “$1000 Trade In Assistance” for a few of the GM brands. GM was going to pay the dealer to give you an extra $1000 for your trade.

      • 0 avatar
        gtem

        Our local greaseball Chevy dealer does all sorts of special promotions revolving around trade ins, promising to give you double for it, etc. They’re home of the “$197/mo” Silverado.

        • 0 avatar
          PrincipalDan

          I’m always most fascinated by the manufacturers incentives (in all their varied forms) because it tells something about their sales. Especially now that a few manufacturers are NOT reporting sales monthly.

          Hell GM was doing 0% for 72 months on many Buicks last month. I haven’t seen that since the Great Recession.

          At the end of 2016 when my wife was buying GM was only offering 0% for 36 months on a few GMC models.

    • 0 avatar
      arach

      Averages are deceiving.

      No one can put a downpayment less than 0.

      Most loans need 10% from my experience.

      So if the average loan is about 32k, and you need 10%, then thats 3,200.

      but then you have outliers on the high side… I put $50k down on a car for example and financed the rest. How many “0” down payments need to offset my 50k down to make it 4191?

      There was 1 of me, but it takes more than 11 to put 0 down to come up with an average of 4191.

      This is what gets most people- they think “average” is the middle, but in fact 95% of people are “below average”.

      I bet the median is closer to 3 grand.

  • avatar
    gtem

    My wife and I are the weirdos that saved for a few years (had to knock out her medical school loans first) and I drove cheap full depreciated old cars in the mean time, then scooped up a lightly used but heavily depreciated 2 year old minivan for $18,5k cash. Would a $34k new van be functionally better? Not appreciably so.

    • 0 avatar
      jh26036

      What’s weird about driving older cars? People choose to spend money in different ways.

      • 0 avatar
        highdesertcat

        Motor Trend TV (Chan 246 on Dishnetwork) has these programs about restoring, modifying and customizing old cars and trucks.

        Sometimes people choose to spend their money, a lot of it, on restoring, modifying and customizing their old car or truck, and the end result is gorgeous and unique!

      • 0 avatar
        gtem

        I’m speaking tongue in cheek about being the “weirdos” for living below our means and not stretching finances for the sake of driving the latest and greatest newest cars and eating staggering depreciation.

  • avatar
    monkeydelmagico

    Higher rates and longer terms. This is all excellent news for those who lend money. The default rates for the sub primes is creeping up a bit.

    https://www.kansascityfed.org/en/publications/research/mb/articles/2018/auto-loan-delinquency-rates-rising

    Thankfully the the mouth breathers have become a smaller segment of the loan pie. Good dealers and F&I don’t bother with the bottom of the barrel any more on new car loans. They refer them over to the used car lot and upsell the CPO programs. For the image conscious consumer Mercedes CPO really fishes with the best bait. Hook line and sinker suckers.

  • avatar
    Zipster

    Highdesert

    How ironic that you preach fiscal prudence to individuals yet your idol and his ilk have greatly increased the rate at which the national debt is accruing.

    • 0 avatar
      highdesertcat

      Zipster, I like the current US administration a great deal better than the previous one that had “redistribution of America’s wealth” at its core belief and mission.

      And yes, that tax cut is heaven sent for my wife and I, and millions like us. We worked hard all our lives to get where we’re at financially, and we finally get to keep more of what we got.

      If you think I’m being facetious, I’m not. Consider my wife’s $7K/mo annuity, plus my military retirement pay, plus our socsec retirement pay X2, plus rentals income, yeah, that tax cut comes in handy.

      But tax time is a filing nightmare because of ALL those forms. Fortunately we have a tax lawyer/CPA in the family.

      And as far as the national debt, how about the last guy, eh?

      I’m looking fwd to the SOTU. Hope he rips the ‘crats a new one.

  • avatar
    Zipster

    Bet that tax cut is helping you a lot.

  • avatar
    TheEndlessEnigma

    I really enjoy the “if you can’t afford to pay cash don’t buy it” arrogance that graces these virtual pages. *MOST* people don’t have the free cash sitting around to purchase an automobile but can afford the payment on a loan. According to the arrogant pricks that grace these pages, those who cannot afford to pay cash should therefore be shut out of owning an automobile. Nice attitude neighbors, nice attitudes.

  • avatar
    Arthur Dailey

    I’ll use Canadian statistics. The average car in Canada is according to on line research 9.66 years old. There were a grand total of 1.4 vehicles registered in all of Canada that were over 20 years of age.

    So cars do not last 20 years in Canada, with very statistically rare exceptions.
    Yes, you can expect a ‘new’ car to last 10 years.

    After that???
    And what is the cost of maintaining a car that is 10+ years old? And the impact of rust on its structural integrity?

    Yet I have one vehicle that is now over 9 years old and I hope to keep it running reliably for another 4 to 5 years. It is Krowned annually.

    However I have another vehicle that is now 13 years old, that we have decided to ‘give away’. We were offered at most $500 for it. Despite numerous new or nearly new parts. We decided that the cost of maintaining it, and the fact that we do not ‘trust it’ for bad weather, long distance trips have made investing any more time or money into it to be a ‘waste’.

    And we have learned what many have said, that the owner is more important than the make or model regarding long term reliability.

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