Comments on: Are Car Loans the Next Big Credit Worry?

By: Thomas Bailey

Thomas Bailey — Sun, 25 Oct 2009 07:48:09 +0000

I have avoided this mess by never buying a car. I could function quite well without a car, preferring to walk or bike. My most expensive bike was $350, and most were under $100. The other way I avoid this mess is to pay the entire amount at the time of purchase.

By: rob tree

rob tree — Wed, 19 Mar 2008 22:54:11 +0000

The financial problem clouds are gathering for many people:
I found some videos on the internet around this subject, maybe you have time to look I think you will find them interesting.http://car-loans-1.com

By: Secured loans

Secured loans — Tue, 19 Feb 2008 09:35:26 +0000

I think you are right though – people don’t tend to default on their car payments unless they absolutely have to.As it has become a status symbol now a days. I think Today they are affordable.

By: Secured Loans

Secured Loans — Sat, 15 Dec 2007 13:13:00 +0000

With a lot of Car Loans being Sub prime, I think it is only a matter of time before it does happen. In the UK, Paragon a sub prime lender is trying to sell off it’s Car loan book.

Worrying times if you need finance!

By: James Smith

James Smith — Fri, 14 Dec 2007 09:53:42 +0000

Talking about Online Loan, I think you should see this Payday Loans Online site, which offers all sorts of personal loans for your needs. It is a personal loan resources and financial services portal plus an online directory for financial products and services. Through OnlineLoanResources, Obtaining personal loans or financial services is as easy as 1 – 2 – 3.

By: Anonymous

Anonymous — Mon, 10 Dec 2007 20:49:57 +0000

The signs that car loans are a problem have been there for years. In the mid-90’s I started hearing about people having problems because they were “underwater” on their cars loans (owing more than the value of the used car). That was happening because of low down payments and long terms (5-6 years). As long as you are driving the car and making the payments, it isn’t so bad. You are getting the car you intended for the monthly payments you intended. But when you want to trade it in, or the car gets totalled in an accident, you owe money on a car that depreciated faster than you paid it off.

A few years ago, I bought a car and received some alarming news. I wasn’t able to pay for the entire cost of the used car in cash. I took a loan for a bit under half the price. The salesman was a bit apologetic about having to mention it, because he knew it wouldn’t apply to me, but he said NY State required that he mention it. There was an insurance policy available to pay off my negative equity in case the car was totalled. For the insurance industry to sell such a policy was a clear indication that there were a lot of people in that situation.

Finally, in the last few years, I’ve been regularly seeing ads for new cars that offer to pay off your existing car loan. So far, that’s nothing new. I’ve been seeing those for a long time. But recently, the fine print has been mentioning that the advertised monthly payments don’t include negative equity rolled into the new loan. Holy bankruptcy, Batman! Now, people not only owe more on their current vehicles than they are worth, they are rolling the negative equity from their previous vehicles into that loan!

By: Tim

Tim — Sat, 08 Dec 2007 20:11:48 +0000

my wife just told me about her friend who was complaining about gas costing $81 to fill her new Porsche Cayenne. She also complained about how expensive her insurance was for her and her husband. Having 1×2008 porsche cayenee, 1×2006 porsche 911, 1×2004 MB CLK320, and 1×2004 toyota camry between the two of them doesn’t help. of course, they aren’t paying any financing on any of them either.

By: Tim

Tim — Sat, 08 Dec 2007 20:03:44 +0000

Yeah, where the heck are people getting credit and loans? I couldn’t even get Bank of America to give me a credit card and I had $30k in deposits with them (one of the many reasons I’m severing my “relationship” with them).

If car loans are the next big thing, we are deep trouble considering all the 0% and under 5% financing options that were around. as far as actually being the next big thing, I doubt it simply because the evaluation on cars and your ability to get car loans was tighter than for mortgages.

actually, americans are a little late on the spend lots on the car thing. many countries have 10 year car loans and that is what people did (like the europeans), and live in a small one room apartment.

it’s funny, when I moved to Austin, TX, for grad school, i was looking at a place to live. I went to one house that was renting out a room, there were three other couples living in the house, and they had turned every room into a bedroom. the living room was actually the entryway. The funny part was, all three couples had a brand new Volvo s60 parked out front.

when my wife and I bought a new 325i, there was another couple getting a 5 series. we were talking about price and what we were each getting. then the guy asked what our financing was, and we told them we were paying cash. it took him by surprise. that’s just the way it is with cars, the vast majority of people will finance. nothing wrong with it, so long as you can afford to do so. yes, we buy new cars because we like new cars and we keep them for a long time. there is no depreciation if you don’t sell the vehicle. yeah, yeah, we could save the money and buy used, but we are saving 90% our of income so, there’s not much for us to worry about.

By: JEFF

JEFF — Sat, 08 Dec 2007 15:38:36 +0000

‘man plans God laughs’

By: Chris

Chris — Fri, 07 Dec 2007 15:23:35 +0000

I have become firmly against car loans. Shortly after I bought my first new car, I decided never again to do that either. It makes no sense. Why pay $400/mo for a car when you can just put $400/mo into your bank account? For the cost of a car, the difference between what you pay and what you earn is thousands of dollars over just a few years. Then consider you are buying a rapidly depreciating good, and when buying new it drops like a rock in value just because its been titled!

My car buying philosophy- save the money, buy used.