 digitalfuturSees More Than Shown
Premium Member
join:2000-07-15
GTA |
6 Year+ loans Now Account For More Thanhalf of all financing for vehicles, up from 14% five years ago. At trade-in time, more than a quarter of all vehicles are not paid off. Seems the desire to be a homeowner at any cost is the root cause, as overpriced houses and the huge mortgage payment that go with them squeeze cash flow for other necessities. » www.theglobeandmail.com/ ··· 4434786/If you can't pay off a car in 5 years, get something cheaper or something used. Financing for a longer period of time than ownership is simply piling one cost on top of another. |
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Everyone plans their lives on payments, not on full dollar value. They buy houses this way and run their credit card balances this way, too.
So does the country. We don't pay down our national debt, we service it.
I don't like the smell of this, but it's a societal trend. What can you do? You can't go back to the old ways, they call that "austerity" now. |
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 dirtyjeffer0Posers don't use avatars.
Premium Member
join:2002-02-21
London, ON |
to digitalfutur
if your intention is to flip vehicles every few years, then you should either lease (if you don't exceed the km limits) or buy used...i keep my vehicles for a long time now, so i went with the long term financing (7 years)...one car is 0% interest, the other is 2.9%...i could have afforded the payments for 60 months, but would rather the flexibility should circumstances change...the loans are open anyway, so they can be paid off at any time without penalty...i over pay my mortgage by paying bi-weekly instead of monthly and have added 15% extra to go directly to the principal...i would rather accelerate my payments on my mortgage than my cars, since the interest rate on them is lower anyway, and the mortgage is a higher amount. |
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 AR
join:2000-09-21
Toronto, ON |
to dsanfte
said by dsanfte:You can't go back to the old ways, they call that "austerity" now.
Or if you're my generation: you're termed "negative". |
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 DevanchyaSmile
Premium Member
join:2003-12-09
Ajax, ON |
to dirtyjeffer0
I have 2 cars that are being paid off right now. My personal car is 1 year from being paid off and has 124,000km on it. I expect it to be 170,000km next year. My wife's car is 3 years from being paid off, and has 12,000km on it... you can see which car is the Commuter car. Both are on Zero percent Financing deals (through Scotia Bank) for 5 years. To quote my financials advisor "If they are giving away money take it... take the money you would have paid it off with, and invest it in anything... even a savings account. You will make more" My first car was a 9% loan through Saturn, I had that paid off a year early.... HSBC  |
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 Pauly
join:2004-05-29
canada |
Pauly
Member
2012-Jul-22 10:16 pm
I don't see why people dont just buy things when they have all the money to. Don't have the money to buy a car? dont buy it, simple as that. why "treat" yourself when you really shouldnt. Don't have money to blow on parties, booze, drinking, and restaurants? dont go. buy Kraft Dinner. People are buying cars and financing them to "look cool" when they cant afford it, they are trying to "look" like they fit into a lifestyle when they shouldnt then fall behind in payments and loose everything, if everyone just bought something when they saved up, then all our lives will be better. |
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peterboro (banned)Avatars are for posers
join:2006-11-03
Peterborough, ON |
to dirtyjeffer0
said by dirtyjeffer0:if your intention is to flip vehicles every few years, then you should either lease (if you don't exceed the km limits) or buy used...i keep my vehicles for a long time now, so i went with the long term financing (7 years)...one car is 0% interest, the other is 2.9%...i could have afforded the payments for 60 months, but would rather the flexibility should circumstances change...the loans are open anyway, so they can be paid off at any time without penalty...i over pay my mortgage by paying bi-weekly instead of monthly and have added 15% extra to go directly to the principal...i would rather accelerate my payments on my mortgage than my cars, since the interest rate on them is lower anyway, and the mortgage is a higher amount. We'll see. Mark my words and save my post cause in 5 years you'll be posting in here about getting a new car.  Must suck to have to go to people to borrow money for a car and pay interest or a higher sticker price to cover the 0% financing. I should have another car sold this week that we drove for two years and are selling for 3k more than we paid cash for it two years ago. |
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Pauly
join:2004-05-29
canada |
Pauly
Member
2012-Jul-22 10:19 pm
i dont own any money on my car. never have in the last 10 years. i just pay for gas, oil changes and regular repairs/maintenance. problem solved |
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peterboro (banned)Avatars are for posers
join:2006-11-03
Peterborough, ON |
peterboro (banned)
Member
2012-Jul-22 10:23 pm
said by Pauly:i dont own any money on my car. never have in the last 10 years. i just pay for gas, oil changes and regular repairs/maintenance. problem solved There are people who don't like you in the financial services sector. Don't take it personally. |
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DevanchyaSmile
Premium Member
join:2003-12-09
Ajax, ON |
to Pauly
If I have a car I can go to work.
If I don't have a car I cannot go to work.
It is a 4 hour transit ride one way to the Black-hole of Transit known as where I work. |
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Pauly
join:2004-05-29
canada |
Pauly
Member
2012-Jul-22 10:32 pm
i was like you at one point in my life, had no car. guess what? there was a way for me to obtain a car, it was called working and not blowing my money on useless things. my friend would go out every weekend and blow money on movies, bars, clubs, etc. i cutt this out for a whole year guess what i got a car next year. and i was nice enough to see one guy whio liked to blow his money on the sidewalk, i was nice enough to give him a lift to the bus stop, that was nice of me. |
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to dsanfte
said by dsanfte:Everyone plans their lives on payments, not on full dollar value. They buy houses this way and run their credit card balances this way, too.
So does the country. We don't pay down our national debt, we service it.
I don't like the smell of this, but it's a societal trend. What can you do? You can't go back to the old ways, they call that "austerity" now.
If you can get a 0% financing loan that's a good deal. I'm surprised you can get them for longer than 3 years though! To be honest, there must be some crazy fine print in those loan contracts though.  |
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DevanchyaSmile
Premium Member
join:2003-12-09
Ajax, ON |
to Pauly
wtf are you on Paolo, because I don't see your point here... You want me to stay at home not working... in order to afford to get a car so I can work?
Are you one of those nutters that think that Public Transit actually covers everywhere? |
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MichelR
join:2011-07-03
Trois-Rivieres, QC |
to Pauly
said by Pauly:I don't see why people dont just buy things when they have all the money to. Don't have the money to buy a car? dont buy it, simple as that. why "treat" yourself when you really shouldnt. Don't have money to blow on parties, booze, drinking, and restaurants? dont go. buy Kraft Dinner. People are buying cars and financing them to "look cool" when they cant afford it, they are trying to "look" like they fit into a lifestyle when they shouldnt then fall behind in payments and loose everything, if everyone just bought something when they saved up, then all our lives will be better.
Not everyone has $25K+ lying around. And by your logic, one wouldn't buy a house until they have a couple of hundred thousand dollars (or whatever a house cost in their area). The problem isn't car loans, but maybe rather people going for bigger than they can afford (going for a trend or status symbol). I remember thinking 5 years was pretty damn long for a car loan. I've had two car loans, 4 years each - the first one I paid in full several months before term. That's the longest I'd tolerate doing car payments. |
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booj
join:2011-02-07
Richmond, ON |
to Pauly
said by Pauly:I don't see why people dont just buy things when they have all the money to. Don't have the money to buy a car? dont buy it, simple as that. why "treat" yourself when you really shouldnt. Don't have money to blow on parties, booze, drinking, and restaurants? dont go. buy Kraft Dinner. People are buying cars and financing them to "look cool" when they cant afford it, they are trying to "look" like they fit into a lifestyle when they shouldnt then fall behind in payments and loose everything, if everyone just bought something when they saved up, then all our lives will be better.
So you're in favour of stricter bank regulations designed to prevent these types of predatory lending? |
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Pauly
join:2004-05-29
canada |
Pauly
Member
2012-Jul-23 7:03 am
nah, maybe you guts cant read clearly. putting money asside in a savings account, then when u have a couple grand saved, you can buy a "used" car. no one is telling you to buy a NEW car. I never said brand new car. that was you thinking that. if u cant afford a new car, then start looking for a used one, theyre are pleanty available. second of all, im trying to teach people that saving is important, if u dont saave and live paycheck to paycheque, and have a hard time with the downpayments and deposits, then dont say i told u so. |
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 elwoodbluesElwood Blues
Premium Member
join:2006-08-30
Somewhere in |
to digitalfutur
That sound like DJ and his perpetual car payments. By the time he's finished paying for his econoboxes, he'll have to go buy new ones, they'll be all worn out. |
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| elwoodblues |
to peterboro
said by peterboro:said by dirtyjeffer0:if your intention is to flip vehicles every few years, then you should either lease (if you don't exceed the km limits) or buy used...i keep my vehicles for a long time now, so i went with the long term financing (7 years)...one car is 0% interest, the other is 2.9%...i could have afforded the payments for 60 months, but would rather the flexibility should circumstances change...the loans are open anyway, so they can be paid off at any time without penalty...i over pay my mortgage by paying bi-weekly instead of monthly and have added 15% extra to go directly to the principal...i would rather accelerate my payments on my mortgage than my cars, since the interest rate on them is lower anyway, and the mortgage is a higher amount. We'll see. Mark my words and save my post cause in 5 years you'll be posting in here about getting a new car. Must suck to have to go to people to borrow money for a car and pay interest or a higher sticker price to cover the 0% financing. I should have another car sold this week that we drove for two years and are selling for 3k more than we paid cash for it two years ago. Damn it, you beat me to to, I said effectively the same thing. |
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to peterboro
said by peterboro:said by dirtyjeffer0:if your intention is to flip vehicles every few years, then you should either lease (if you don't exceed the km limits) or buy used...i keep my vehicles for a long time now, so i went with the long term financing (7 years)...one car is 0% interest, the other is 2.9%...i could have afforded the payments for 60 months, but would rather the flexibility should circumstances change...the loans are open anyway, so they can be paid off at any time without penalty...i over pay my mortgage by paying bi-weekly instead of monthly and have added 15% extra to go directly to the principal...i would rather accelerate my payments on my mortgage than my cars, since the interest rate on them is lower anyway, and the mortgage is a higher amount. We'll see. Mark my words and save my post cause in 5 years you'll be posting in here about getting a new car. Must suck to have to go to people to borrow money for a car and pay interest or a higher sticker price to cover the 0% financing. I should have another car sold this week that we drove for two years and are selling for 3k more than we paid cash for it two years ago. What's your secret? Do you buy em cheap cause they need work, fix em up then sell them after getting bored driving it? |
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peterboro (banned)Avatars are for posers
join:2006-11-03
Peterborough, ON |
peterboro (banned)
Member
2012-Jul-23 9:34 am
said by Warez_Zealot: What's your secret? Do you buy em cheap cause they need work, fix em up then sell them after getting bored driving it? Some I do a little or no work and some are written off and some I get a deal on when I buy by being in the right place at the right time. |
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 BryceS
join:2007-09-17
Stouffville, ON |
to MichelR
said by MichelR:said by Pauly:I don't see why people dont just buy things when they have all the money to. Don't have the money to buy a car? dont buy it, simple as that. why "treat" yourself when you really shouldnt. Don't have money to blow on parties, booze, drinking, and restaurants? dont go. buy Kraft Dinner. People are buying cars and financing them to "look cool" when they cant afford it, they are trying to "look" like they fit into a lifestyle when they shouldnt then fall behind in payments and loose everything, if everyone just bought something when they saved up, then all our lives will be better.
Not everyone has $25K+ lying around. And by your logic, one wouldn't buy a house until they have a couple of hundred thousand dollars (or whatever a house cost in their area). The problem isn't car loans, but maybe rather people going for bigger than they can afford (going for a trend or status symbol). I remember thinking 5 years was pretty damn long for a car loan. I've had two car loans, 4 years each - the first one I paid in full several months before term. That's the longest I'd tolerate doing car payments. $100,000 saved to purchase a $500,000 house isn't unrealistic. |
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dirtyjeffer0Posers don't use avatars.
Premium Member
join:2002-02-21
London, ON |
to peterboro
said by peterboro:
Must suck to have to go to people to borrow money for a car and pay interest
not at all, every dealership has a finance department for just that very purpose. quote:
or a higher sticker price to cover the 0% financing.
nope...with both our cars, were given the small discount that was available at the time ($500 off the Kia, and a similar amount off the Hyundai with a gas card) and the special financing...what the Koreans DON'T do is what Ford and GM are infamous for..."Friends and Family Pricing", but if you finance, they charge you 6%...so whatever deal you go, you just lost it...as well, their MSRP's are already so "overpriced" to start with, your "cash" price is really what the car should have sold for in the first place...Kia/Hyundai have very little "wheeling and dealing" with their cars, as they are already very competitively priced...factor in the simple offers and attractive finance rates, they focus on the value equation right from the start. |
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resa1983
Premium Member
join:2008-03-10
North York, ON |
to peterboro
I gladly take the TTC to & from work - I can actually make it to work faster in the mornings via TTC than my co-worker who lives in my building does, however its faster to take a car to get home than to bus it. My husband however, does need a car to get to/from work due to his hours, and his job.
We bought an off-lease mazda 3 2 years ago, just as our old car was failing. We didn't have the cash to purchase outright, so had to finance it - a 7 yr car loan, with no penalties for doing additional lumpsum payments & paying it off sooner (which we have done several times now). We'll probably have this car for quite a long time - no real point in switching cars constantly. |
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dirtyjeffer0Posers don't use avatars.
Premium Member
join:2002-02-21
London, ON |
to peterboro
said by peterboro:We'll see. Mark my words and save my post cause in 5 years you'll be posting in here about getting a new car. not sure why you think so...the new car i just bought replaced a 2000 Ford Taurus that i had for a decade...i do find it odd you and elwood get on my case about replacing a 12 year old car with a new Kia Rio5 (which is their lowest priced model), when you don't say boo to AR, who drives a BMW....you want to bust someone's balls, why not look to the people who dropped a lot of money "Premium" vehicles...or, perhaps shut up, because what does it matter to you what i drive??? |
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elwoodbluesElwood Blues
Premium Member
join:2006-08-30
Somewhere in |
to dirtyjeffer0
said by dirtyjeffer0:.Kia/Hyundai have very little "wheeling and dealing" with their cars, as they are already very competitively priced...factor in the simple offers and attractive finance rates, they focus on the value equation right from the start.
Says the guy who saved all that money and gave it right back to the dealership in the form of an extended warranty Cha CHING |
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dirtyjeffer0Posers don't use avatars.
Premium Member
join:2002-02-21
London, ON |
i didn't see you offering up your bank account to pay for any possible repairs, should they arise...if you aren't willing to take the risk, why do you expect me to??...either provide me access to your account to pay for possible repairs, or STFU about the extended warranty. |
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elwoodbluesElwood Blues
Premium Member
join:2006-08-30
Somewhere in |
to dirtyjeffer0
We don't say BOO to AR, because
1) AR is not up to his eardrums in debt
2) AR makes at least 3-4x what you do
3) He bought the car in Cali and brought up with him, so what he did in a previous life is no different then you buying your Taurus 12yrs ago.
And you think that Rio is going to last 12yrs with daily commuting, you got another thing coming to you. It'll be dead before you finish paying for it.
You get harped on simply because you live in a house of cards, and you PUBLICIZE IT. If you simply kept quiet about your income, your debt levels, etc, nobody would harp on you.
You went and spent 50K on 2 new cars, but without the context of your income and debt , nobody would know that it was a dumb move. |
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dirtyjeffer0Posers don't use avatars.
Premium Member
join:2002-02-21
London, ON |
don't worry elwood, i am fine financially...i really don't understand why you care so much...the only thing i can guess is you are jealous...nothing else makes sense. |
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elwoodbluesElwood Blues
Premium Member
join:2006-08-30
Somewhere in |
to dirtyjeffer0
Extended warranties are a cash grab. I have never bought an extended warranty in my life. Spend sometime reading (or are you waiting for that movie too?) and you'll see that's the general consensus. |
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| elwoodblues |
to dirtyjeffer0
said by dirtyjeffer0:don't worry elwood, i am fine financially...i really don't understand why you care so much...the only thing i can guess is you are jealous...nothing else makes sense.
Yeah that must be it. |
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