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04-11-2013, 11:34 AM
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#1 | | Everyone wants a piece of R S...
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| Introducing the 97-month car loan
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04-11-2013, 11:36 AM
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#2 | | RS.net, helping ugly ppl have sex since 2001
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Well if you need the car now and you don't see yourself losing your income that's not really bad. Considering a Camry will out last those loan payments if you don't crash it.
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04-11-2013, 12:02 PM
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#3 | | Everyone wants a piece of R S...
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Originally Posted by hk20000  Well if you need the car now and you don't see yourself losing your income that's not really bad. Considering a Camry will out last those loan payments if you don't crash it. | There is a difference between affording a car and affording a car.
Paying that much interest on a Camry is a very stupid financial decision. Never negotiate the monthly payment. Always negotiate the cash purchase price first. Remember you are buying a car, not a monthly payment.
Me? I would have bought a 10 year old civic and kept some money aside for repairs.
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04-11-2013, 12:14 PM
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#4 | | OMGWTFBBQ is a common word I say everyday
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The biggest problem with these loans is people owe more than the car is worth. The most i would do for a loan is 60 months on a new car, and 48 on a used.
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04-11-2013, 12:23 PM
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#5 | | RS.net, helping ugly ppl have sex since 2001
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hard to say. Considering the current prime rate is so freakishly low.
could still be better than a 5 year loan on a higher rate of yester years. which makes it alright.
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04-11-2013, 12:57 PM
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#6 | | OMGWTFBBQ is a common word I say everyday
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97 months?  | |
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04-11-2013, 12:58 PM
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#7 | | RS Veteran
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97 months on an Audi.
w00p w00p!
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04-11-2013, 01:03 PM
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#8 | | Everyone wants a piece of R S...
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Originally Posted by bcrdukes 97 months on a Mercedes C300.
w00p w00p! | Fixed
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04-11-2013, 01:08 PM
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#9 | | OMGWTFBBQ is a common word I say everyday
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Originally Posted by VRYALT3R3D 97 months on a 320i? | Fixed v3
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04-11-2013, 01:17 PM
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#10 | | Everyone wants a piece of R S...
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04-11-2013, 01:18 PM
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#11 | | :: Sells McLarens, Not tofu :okay: ::
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36-48 months is the sweet spot for leasing...
0% finance = free borrowing.. (at least on paper, manufacturer pays for interest basically)
84 term is awfully long... some domestics locally offer 96!
stupid thing is by the 7th year, the car is worth nothing, yet you still owe a fair amount on it... 
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04-11-2013, 01:36 PM
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#12 | | I contribute to threads in the offtopic forum
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Originally Posted by tofu1413 36-48 months is the sweet spot for leasing...
0% finance = free borrowing.. (at least on paper, manufacturer pays for interest basically)
84 term is awfully long... some domestics locally offer 96!
stupid thing is by the 7th year, the car is worth nothing, yet you still owe a fair amount on it... | It's not really free, you will effectively pay more for the car, you can always negotiate a lower purchase price with cash, so there is that aspect...
This is, in a simplified way, how the housing bubbles in US and now Canada started, cheap money, amortized over long periods (40yr amort on real estate)... People buying shit they can't afford - this wont end well
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04-11-2013, 01:51 PM
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#13 | | Banned By Establishment
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Originally Posted by 4444 It's not really free, you will effectively pay more for the car, you can always negotiate a lower purchase price with cash, so there is that aspect...
This is, in a simplified way, how the housing bubbles in US and now Canada started, cheap money, amortized over long periods (40yr amort on real estate)... People buying shit they can't afford - this wont end well | ...and the excess of the 80's
It NEVER ends well when money is cheap and people are desperate to pump up sales.
I had an ex that lived at home and went out and bought a car she didn't need and couldn't afford. Then, 6 months later she got fired. Them her mom moved in with someone.
So she was stuck working at a dead end job(x2) paying for it, AND now market rent. She moved into a basement suite that was literally the size of a bedroom and was completely underground.
So stupid me comes along, and starts dating her and we move in together, and one day she's like, "so I re-negotiated the car loan"
Oh. Yeah. Can't wait to hear the detes on this one.
She had a bit over a year and a half left at $550/month. Rolled it into a new loan for $420/month for another 4 years I think. Can't remember the specifics.
By the time she was done paying for it, at 400/month in year 7, she owned a piece of shit that got stolen or broken into all the time and was worth pennies on the dollar.
I remember her mom said to me once, "well, it was a good investment at the time she bought it". On what fucking planet is a single girl buying a 4x4 domestic truck...NEW...off the lot...for STICKER PRICE a good 'investment'?
I've heard of many people doing some stupid shit with cars(mostly here on RS  but have yet to see this one matched.
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04-11-2013, 02:16 PM
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#14 | | Even when im right, revscene.net is still right!
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But what will be the interest rate?
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04-11-2013, 02:39 PM
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#15 | | :: Sells McLarens, Not tofu :okay: ::
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| Quote:
Originally Posted by 4444 It's not really free, you will effectively pay more for the car, you can always negotiate a lower purchase price with cash, so there is that aspect...
This is, in a simplified way, how the housing bubbles in US and now Canada started, cheap money, amortized over long periods (40yr amort on real estate)... People buying shit they can't afford - this wont end well |
not true. end of the day, there is more room to negotiate on financing.
reason: sure up front they make nothing on gross, but on the finance side, the finance manager / dealer makes money for getting the customer financed even if its a 0% term.
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04-11-2013, 02:44 PM
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#16 | | I contribute to threads in the offtopic forum
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Originally Posted by tofu1413 not true. end of the day, there is more room to negotiate on financing.
reason: sure up front they make nothing on gross, but on the finance side, the finance manager / dealer makes money for getting the customer financed even if its a 0% term. | Ok, you go negotiate on a finance deal and a cash deal, see which principal price is lower
What you have said make no financial sense (I'm a finance guy, who has bought every car with cash, and negotiated heavily on all)... Maybe I'm just a champion negotiator, but I highly doubt that's true
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04-11-2013, 02:45 PM
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#17 | | I contribute to threads in the offtopic forum
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Originally Posted by Gridlock ...and the excess of the 80's
It NEVER ends well when money is cheap and people are desperate to pump up sales.
I had an ex that lived at home and went out and bought a car she didn't need and couldn't afford. Then, 6 months later she got fired. Them her mom moved in with someone.
So she was stuck working at a dead end job(x2) paying for it, AND now market rent. She moved into a basement suite that was literally the size of a bedroom and was completely underground.
So stupid me comes along, and starts dating her and we move in together, and one day she's like, "so I re-negotiated the car loan"
Oh. Yeah. Can't wait to hear the detes on this one.
She had a bit over a year and a half left at $550/month. Rolled it into a new loan for $420/month for another 4 years I think. Can't remember the specifics.
By the time she was done paying for it, at 400/month in year 7, she owned a piece of shit that got stolen or broken into all the time and was worth pennies on the dollar.
I remember her mom said to me once, "well, it was a good investment at the time she bought it". On what fucking planet is a single girl buying a 4x4 domestic truck...NEW...off the lot...for STICKER PRICE a good 'investment'?
I've heard of many people doing some stupid shit with cars(mostly here on RS but have yet to see this one matched. | Wow, what an idiot! No wonder she's an ex... People like that shouldn't be extended credit, for their own good (and watch the economy die)
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04-11-2013, 02:59 PM
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#18 | | :: Sells McLarens, Not tofu :okay: ::
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Originally Posted by 4444 Ok, you go negotiate on a finance deal and a cash deal, see which principal price is lower
What you have said make no financial sense (I'm a finance guy, who has bought every car with cash, and negotiated heavily on all)... Maybe I'm just a champion negotiator, but I highly doubt that's true |
per say 0% finance. 0 rebate on cash. principal price is the same. however, dealer technically makes more money if they were to get the customer to finance the car. In theory, finance deals makes more money, so those deals have that little bit more room to make a deal.
invoice price for cash or finance is the same with 0 incentives and 0% interest. Dealer makes money for setting up the loan. The bank pays dealer to set up the deal and the manufacturer pays for the interest.
I am a car salesman and I also buy cars with cash, although I am financing my most current car. :P
most people think cash is king, however, only true for those cars doing a factory cash rebate.
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04-11-2013, 03:43 PM
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#19 | | I contribute to threads in the offtopic forum
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Originally Posted by tofu1413 per say 0% finance. 0 rebate on cash. principal price is the same. however, dealer technically makes more money if they were to get the customer to finance the car. In theory, finance deals makes more money, so those deals have that little bit more room to make a deal.
invoice price for cash or finance is the same with 0 incentives and 0% interest. Dealer makes money for setting up the loan. The bank pays dealer to set up the deal and the manufacturer pays for the interest.
I am a car salesman and I also buy cars with cash, although I am financing my most current car. :P
most people think cash is king, however, only true for those cars doing a factory cash rebate. | are you considering at all the time value of money? doesn't appear as though you are in the above case
we may just have to agree to disagree
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04-11-2013, 03:45 PM
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#20 | | OMGWTFBBQ is a common word I say everyday
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Originally Posted by tofu1413 although I am financing my most current car. :P . | 97 Months?  | |
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04-11-2013, 03:49 PM
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#21 | | I only answer to my username, my real name is Irrelevant!
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here tofu http://en.wikipedia.org/wiki/Time_value_of_money
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04-11-2013, 04:24 PM
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#22 | | Zombie Mod
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$480 a month for the 2013 Camry
75 months of payments
$36,000 total paid for a $23,000 car.
WTF is the interest rate on the financing? I don't think it's that much, but more than 6 years of payments sure adds up!
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04-11-2013, 04:35 PM
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#23 | | "Entertainment" mod.
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Originally Posted by Presto $480 a month for the 2013 Camry
75 months of payments
$36,000 total paid for a $23,000 car.
WTF is the interest rate on the financing? I don't think it's that much, but more than 6 years of payments sure adds up! | Toyota is pretty shitty with their financing, coming from someone who works in a Toyota dealership. It's something like 6.5% outside of promos, and that's hardly considering the special offers put on throughout the year. If I was to finance a Toyota rather than the 0% I get on my current car, I only get a tiny bit below MSRP as a discount on the car, and still have a retarded interest rate on it.
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04-11-2013, 04:48 PM
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#24 | | :: Sells McLarens, Not tofu :okay: ::
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Originally Posted by 4444 are you considering at all the time value of money? doesn't appear as though you are in the above case
we may just have to agree to disagree | nope. didnt take that into account. im not the finance guy. however, cars are getting cheaper.. comparing model to models over the years. Quote:
Originally Posted by dared3vil0 97 Months? | maybe for a GT3RS Quote:
Originally Posted by StylinRed | 
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04-11-2013, 05:04 PM
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#25 | | I contribute to threads in the offtopic forum
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Originally Posted by tofu1413 nope. didnt take that into account. im not the finance guy. however, cars are getting cheaper.. comparing model to models over the years.
maybe for a GT3RS | then, with all due respect, you shouldn't ever get into a 'cost' discussion with anyone, as time value of money is ALL that matters in a cash vs. finance type decision
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