Comments on: Now you can have a 7 year car loan. Outrageous!!

By: Frugal Confessions

Frugal Confessions — Tue, 12 Oct 2010 12:05:18 +0000

[...] Early Retirement Extreme discusses the long term effects of new 84-108 (that’s over 7 years) car loans being offered. [...]

By: Piggy Bank

Piggy Bank — Sun, 10 Oct 2010 15:49:33 +0000

CASH, CASH, CASH. Is all I can say about buying any car. Never buy new unless you are a millionaire. Cars depreciate so much and so quickly new is just crazy. Plus when buying used you can develop your bartering abilities and get a great deal.

By: HSpencer

HSpencer — Sun, 10 Oct 2010 15:40:25 +0000

http://www.amazon.com/Car-Wreck-Rear-Ended-Over-Crushed/dp/1934938653/ref=sr_1_1?s=books&ie=UTF8&qid=1286725107&sr=1-1

This book is very informative on current car loans and pitfalls.

By: uncertain algorithm

uncertain algorithm — Sun, 10 Oct 2010 14:37:44 +0000

These have been around a while. Many of the young people I speak with have 7-year loans from their credit union.

Of course, banks are taking risk too. If inflation is high in the future, the consumer wins.

By: Robert Muir

Robert Muir — Sat, 09 Oct 2010 16:07:28 +0000

I agree. About 25 years ago, when I was younger and not as financially knowledgeable as I am now, I bought a brand new Pontiac Fiero and the only thing I was concerned about was if I could afford the monthly payments. :-/ I doubt if even seeing an amortization schedule would have made a difference.

By: Jacob

Jacob — Sat, 09 Oct 2010 15:23:54 +0000

@gibberade – I think the answer is a resounding NO. They only understand “minimum payments”.

I have started using amortizing loan calculators to show people how much interest they’re paying on a loan. This is usually shocking [to them], when it shouldn’t be.

By: gibberade

gibberade — Sat, 09 Oct 2010 13:27:30 +0000

People just love to take on DEBT. Do they understand interest?

By: car man

car man — Wed, 04 Jun 2008 12:29:36 +0000

You will be upside down by the time you finish paying. However, used car are always better to buy especially when you taking about bad credit car loans. They are more affordable but more importantly a new car losses 15 to 20 percent of its value from the time it leaves the car lot

By: H_Roarke

H_Roarke — Wed, 20 Feb 2008 18:41:42 +0000

Glad to see we aren’t the only stupid people on the planet…welcome to the club Malaysia.

By: moneymonk

moneymonk — Tue, 19 Feb 2008 16:56:02 +0000

It’s an American thing, “We want it and we want it now” at whatever price

By: fathersez

fathersez — Sun, 17 Feb 2008 14:30:37 +0000

7 year loans are very common in Malaysia. Almost all the banks give these tenured loans.

They also know that most companies depreciate their cars over 5 years.

THis is clearly a mismatch,but everyone seems to be happy and the Authorities happily make press statements that everything is gung ho because the number of cars sold is high.