Seven-Year Car Loans: America’s Middle Class Can’t Afford Its Cars; own cars after the brakes brehs

[MMA]

And.. nothing will change.

I’m in no position to speak about others who also overspend on vehicles. You may not think it will affect you now but 10-30 years from now this will be many people chance of funding their child education, paying off the mortgage faster or contributing to your 401K.

People have learned nothing since the recessions. Stop betting on credit, if it is not real estate you are fighting a losing battle. Consumerism has won this fight. Have fun working in your 70s.

 

[Collateral]

Got a brand new car in February 2016. It’s a 2015 year model (my car was built in Oct ‘15 so it was literally brand new)

6 year loan 10% interest (I put 0 down and was a first time buyer @ 22y.o. I was desperate)

Worst decision in my 26 years of life. I’d have so much money in my pocket if I had waited and saved up for a old Camry or something. Legit mad at myself. Never getting into another loan again. The shyt is legit slavery.

Paying it off next year though, so it ain’t all bad.

Don’t know how I managed. $338 note + nearly $400 insurance (didn’t even have full coverage on my car till THIS YEAR) all while only making $12 an hour at the time. shyt had me legit depressed, I was broke all the time & couldn’t do anything. Broke up with my girl because I was so down and depressed.

Foreal, financial literacy should have been a HS requirement since the 80’s. Black people are falling into debt because they don’t know how money works & how predatory these banks and shyt are.

 

[IsThatBrothaMouzone?]

Tips for car shopping:

Don't focus on the monthly payment. Salesmen will use as many years on the car loan as needed to get you in that new ride. Let's say your budget is $450/month. It won't work on a 4 year loan, but they can do it on 6 years. You fall in love with the car....and they got you hook, line and sinker. Focus on the total cost and negotiate that....then see the payment breakdown. Be ready and willing to walk away.


Next, visit local banks and credit unions to see what kind of loan you can get (check those interest rates). Perhaps ABC Credit Union can give you a $25k loan at a much better rate/terms than the dealer. If so, use that financing offer from the credit union and see if the dealer can match or beat it. Obviously if you have a shytload of cash, just find a nice used ride and pay cash.

If you buy used or new...make sure you get some kind of bumper to bumper warranty that covers drivetrain, powertrain etc. Pay more upfront but avoid expensive headaches down the road. This is especially true of cars that are known for reliability issues (mid to higher end German and British rides, certain American brands etc.).

Walk away. Don't buy a new car when your current ride is literally about to break down. Sometimes you need to do extra research and shopping. Dealers can tell when you're anxious and will play on that. Of course sometimes it's good to pretend a little bit. If they think you're close, they might sweeten the pot to close the deal.

 

[CashmereThoughts]

its all bad now.

subscription tv services, recurring monthly bundles of services for food and clothes and ride-sharing and deliveries...

people are being nickel and dimed and DONT. EVEN KNOW IT!

smartphones costing fukking $1500!?!

Only recurring auto withdrawal I have is Apple Music and I’ve been swimming the, for the “student discount” for years.

as far as smartphones go. I have and $1100 phone but there half a dozen phones that drop annually with flagship specs in the $500 range.

 

[Kyle C. Barker]

Got a brand new car in February 2016. It’s a 2015 year model (my car was built in Oct ‘15 so it was literally brand new)

6 year loan 10% interest (I put 0 down and was a first time buyer @ 22y.o. I was desperate)

Worst decision in my 26 years of life. I’d have so much money in my pocket if I had waited and saved up for a old Camry or something. Legit mad at myself. Never getting into another loan again. The shyt is legit slavery.

Paying it off next year though, so it ain’t all bad.

Don’t know how I managed. $338 note + nearly $400 insurance (didn’t even have full coverage on my car till THIS YEAR) all while only making $12 an hour at the time. shyt had me legit depressed, I was broke all the time & couldn’t do anything. Broke up with my girl because I was so down and depressed.

Foreal, financial literacy should have been a HS requirement since the 80’s. Black people are falling into debt because they don’t know how money works & how predatory these banks and shyt are.

I got got too with a $400 car payment when I was your age. NEVER AGAIN THOUGH!

fukking up like that is rough way to learn financial literacy

 

[The M.I.C.]

Paying over $1200 I believe in car payments.. Might have to look at trimming some fat soon.

 

[Strapped]

Wall street is destroying the u.s. economy & the government's policing of the world will end it

 

[904]

Vehicles are getting more expensive

Auto loans are going to be on mortgage terms soon lol

But truthfully and seriously, most are under educated when it comes to buying cars or just budgeting period.. That goes for the 800 beacons making 6 figures as well..

We joke around at work but at the same time it's true: People would would finance our trucks for 15 years if I told them their payments would be 400 a month..

 

[chineebai]

I suggest using an auto broker, they may find you the best deal whether for buying or leasing. Theres a lot around on Yelp.

 

[The M.I.C.]

Same people you see at a laundry mat with a new iphone etc..

I buy cars from auto auctions (look in your area for government/bank auctions), if I can buy a 5k car and it lasts me a year or even 6 months I made my money back..

I used to be one of those people with a new car every 2 years etc, once I got to 100% debt free I stopped with that slavery to material possessions bs...

This.

I bought a membership to IAA here in Charlotte a month ago off a recommendation from a friend who does security here and got this G Wagon AMG for 46k recently, no frame damage.. Already working on having the front end fixed and ready in a few weeks.

 

[Kyle C. Barker]

Vehicles are getting more expensive

Auto loans are going to be on mortgage terms soon lol

But truthfully and seriously, most are under educated when it comes to buying cars or just budgeting period.. That goes for the 800 beacons making 6 figures as well..

We joke around at work but at the same time it's true: People would would finance our trucks for 15 years if I told them their payments would be 400 a month..

These new car prices are ridiculous man.

2020 acura rlx going for $55k base means $650-$900 a month for a 5-7 year lease respectively.

If I made $300k a year I might be cool with that payment... Maybe...

But they're mad people who are willing to be down with that.

 

[The M.I.C.]

These new car prices are ridiculous man.

2020 acura rlx going for $55k base means $650-$900 a month for a 5-7 year lease respectively.

If I made $300k a year I might be cool with that payment... Maybe...

But they're mad people who are willing to be down with that.

5 year fukking leases? Might as well finance the shyt outright if you gonna be paying that much.

 

[904]

These new car prices are ridiculous man.

2020 acura rlx going for $55k base means $650-$900 a month for a 5-7 year lease respectively.

If I made $300k a year I might be cool with that payment... Maybe...

But they're mad people who are willing to be down with that.

I see it everyday..

People paying 1600 a month for an Expedition

Carrying 30-40K in negative equity

 

[Astroslik]

These new car prices are ridiculous man.

2020 acura rlx going for $55k base means $650-$900 a month for a 5-7 year lease respectively.

If I made $300k a year I might be cool with that payment... Maybe...

But they're mad people who are willing to be down with that.

7 year lease?

 

[Kyle C. Barker]

I see it everyday..

People paying 1600 a month for an Expedition

Carrying 30-40K in negative equity

$1600 blows my mind breh. They gotta be living with they moms