More than half of all car loans in Canada are for 84 months
Dabutcher
Posts: 2,594
Crazy. I wonder what the US average is ? Peace. D.
https://jalopnik.com/more-than-half-of-all-new-car-loans-in-canada-are-finan-1829964502?utm_medium=sharefromsite&utm_source=jalopnik_copy&utm_campaign=top
https://jalopnik.com/more-than-half-of-all-new-car-loans-in-canada-are-finan-1829964502?utm_medium=sharefromsite&utm_source=jalopnik_copy&utm_campaign=top
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Guess most Canadians hate math as much as most Americans.
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Most people live month to month. Long term lower monthly payments are all they can afford.If you can't hear a difference, don't waste your money.
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Sold cars for a few years... Brought an interesting perspective to my life.- Not Tom ::::::: Any system can play Diana Krall. Only the best can play Limp Bizkit.
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Car loans will be one of the catalysts for the next recession in the US, but it will also be a good time to pick up a truck on the cheap.The best way to predict the future is to invent it.
It is imperative that we recognize that an opinion is not a fact. -
It's not a bad thing if you keep your car. But most people are like fish. The new shiny thing looks better and go after it. We bought our rav4 7 years ago cash. It was used, it's 11 years now and has only a bit of skin cancer otherwise great vehicle. Our rdx bought used @.99% for 5 years. Almost free money and yes we will keep it. So 84 months isn't a bad deal if you keep it.
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Not a bad deal as long as the interest rate is (as we say in New England) wicked low (zero is best!)
We financed Mrs H's CR-V when she bought it because the interest rate was so
low it made more sense than paying cash. 'Twas the first time we ever financed a car (other than "self-financing", which, when interest rates are high, can be cost effective).
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Like my Pappy told me "Rent your women, Own your car"The best way to predict the future is to invent it.
It is imperative that we recognize that an opinion is not a fact. -
Very smart Pappy
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Paid cash for my current car, 2005 Mazda3, and will pay cash for my next, and last, car.Lumin X1 file player, Westminster Labs interconnect cable
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^^same here, paid cash for my current car (2014 CRV) I should be good for one
more before my dirt nap.
The best way to predict the future is to invent it.
It is imperative that we recognize that an opinion is not a fact. -
Probably a lot of trucks or big SUV's in Canada, and, with prices approaching $100k it makes a 48 month payment pretty steep.
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Apparently, the figure is around ten percent of US auto loans are for 7 years. The standard is still 5 years for US bank lenders. I suspect there are far more US buyers who lease vehicles for lower monthly payments than Canadian buyers though, but I haven't checked.
People in Canada would not be getting manufacturer financing for 7 years, which means most are probably getting loans from finance companies similar to those that were selling mortgages to subprime borrowers last decade. And that didn't turn out so well!
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One car I own, the other has two years left on a 4 year 0% loan. New car prices scare the crap out of me. I love cars but I could never pay for one for that long. I think you can even get a 10 year loan now. Im glad it works for some people but I also see it as a way to jack up car prices. Isn’t the average price of a new car something like $30k now?
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Leasing is becoming more popular these days.
Often you can find a lease rate for extremely cheap. Here in the Detroit area you can easily find a brand new vehicle for $100 - $200 month, no money down.
Yeah you turn it in after a few years, but you then get another brand new vehicle. Kinda like an appliance, according to the marketing research out there.
Mileage is a restriction though. Those folks that drive a lot of miles annually, leasing is not a good option.
And, the leased vehicles are usually fully covered by the warranty during that period.
Not for everybody, but leasing gets you into something that you ordinarily couldn't afford if purchased.Basement: Polk SDA SRS 1.2tl's, Cary SLP-05 Pre with ultimate upgrade,McIntosh MCD301 CD/SACD player, Northstar Designs Excelsio DAC, Cambridge 851N streamer, McIntosh MC300 Amp, Silnote Morpheus Ref2, Series2 Digital Cables, Silnote Morpheus Ref2 Series2 XLR's, Furman 15PFi Power Conditioner, Pangea Power Cables, MIT Shotgun S3 IC's, MIT Shotgun S1 Bi-Wire speaker cables
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I don't know a lot of the leases in my area ask for 4k down. To me that takes all the incentive away for a lease plus the mileage penalty at .25 per mile over so much a year.
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Leasing is totally impractical for us, as each of us puts ca. 20k miles on our respective car per year.
Mrs. H's 2005 Ford Escape 4WD Hybrid on its Last Day (June 2016):
039a by Mark Hardy, on Flickr -
I always save up for next vehicle and pay cash. Lucky for me it works with no emergency coming up to have to finance. I have never owned a new vehicle. Closest I have gotten is a one year old Sienna and saved 8K over new. I love Toyota’s . Most reliable vehicles on the planet and all Sienna’s and Tundra’s are made in America. Which is a big deal to me. Americans making great cars and trucks. I love my ten year old Tundra.
Love yours,D
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I think the target market for leased vehicles is....rich people who always want to be driving a shiny new car.
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I'm homeless and have no need for a car.
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But you could use some new underwear. The pair you have on now have at least 200k miles on them since the last washing...I'm homeless and have no need for a car.
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“When once a Republic is corrupted, there is no possibility of remedying any of the growing evils but by removing the corruption and restoring its lost principles; every other correction is either useless or a new evil.”— Thomas Jefferson -
Believe it, or not, but sometimes there are better incentives for leases that make them better options. I would have never believed that but saw it for myself today. Even with low mileage restrictions it was more beneficial to take the 4k incentive to lease and then buy it for residual in 3 years.
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When they start 30 year programs, let me know...
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“When once a Republic is corrupted, there is no possibility of remedying any of the growing evils but by removing the corruption and restoring its lost principles; every other correction is either useless or a new evil.”— Thomas Jefferson -
nooshinjohn wrote: »
You seem to know a lot about his underwear!!!!!!!!!If you can't hear a difference, don't waste your money. -
nooshinjohn wrote: »
You seem to know a lot about his underwear!!!!!!!!!
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“When once a Republic is corrupted, there is no possibility of remedying any of the growing evils but by removing the corruption and restoring its lost principles; every other correction is either useless or a new evil.”— Thomas Jefferson -
Believe it, or not, but sometimes there are better incentives for leases that make them better options. I would have never believed that but saw it for myself today. Even with low mileage restrictions it was more beneficial to take the 4k incentive to lease and then buy it for residual in 3 years.
Maybe, but not in my state. You'd be paying tax on that car, twice, under that scenario. The fine print is really fine in some states.
Lease a car with no money down....sure you can, but in the fine print you may have to cough up some capital cost reduction. You pay sales tax on a car too, say a 30-40k car....would be an extra 3-4k in taxes. Buy it for residual after a 3 year lease, yep you pay taxes again.
In my state, leasing is for those people who don't drive much and never want to deal with auto repairs, and don't mind having a payment their whole life.
7 years on a car loan is crazy. Especially since some cars may not make 7 years without a major repair needed. These types of programs remind me of what went wrong with the housing market and their free money loans. The other day I saw advertised a 7 year loan for a mattress...a frickin' mattress.HT SYSTEM-
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I think most automobiles today are a pretty low risk in terms of major repairs for seven years.
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My wife and I buy slightly used cars (my latest one an Accord with 3,500 miles on it). Take a 4-5 year loan and drive the car for 10 years, alternating who gets the new one. So, we always have one car payment, but never 2. Most cars can easily go 10 years anymore without too many issues.
Not saying it's the best way, it's just what works for our financial situation.
Post edited by Jimbo18 on -
My last 2 cars including my most recent (3 total), have been Honda Certified used. I let others take the depreciation. I have bought one new car in my life, that was 1974.
I drive my cars 7-10 years minimum.The best way to predict the future is to invent it.
It is imperative that we recognize that an opinion is not a fact. -
The most I've spent on a vehicle is 3500.00 and it is the one I'm driving now. 03 F150 Heritage 227,000 on the odometer still runs like new. Uses/leaks no fluids, i work on my own vehicles and I'll drive it until the frame rusts through. Spent its first 10 years in Florida so very little rust under it.
@tonyb is correct our state just rapes you 7 ways from Sunday
