car payments??

Just 95 more payments and... What's next for U.S. consumers looking to cut car payments? Believe it or not, in some areas, 96-month car loans are bubbling up.

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car payments?? Group: alt.autos.ford Date: Mon, Sep 22, 2003, 5:00pm (EDT+4) From: snipped-for-privacy@cfl.rr.com (edb352) Just 95 more payments and... What's next for U.S. consumers looking to cut car payments? Believe it or not, in some areas, 96-month car loans are bubbling up. <<<<<<<
sure, the monthly payment will be less but interest is going to be massive over the 8 yrs.
People don't seem to care about the interest, just the monthly nut.
eric
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And here I thaught that 60 months with a 30% residual was somewhat crazy...................... Seems the Dealers and the manufacturers are kinda **DESPERATE** to move the stock they got cluttering up the showroom floors across the planet - note the top end of the market isn't doing this (at least not here) as they don't have any wish to kill the market for the dealers ( If you sell it over 8 years the sap(sorry buyer) isn't going to be able to get a new vehicle for 8 years as the interest on his vehicle is more than the value of the car so he can't sell it for a new model - his insurance could get hairy if it is a write off and the payout is market value (or even worse book value) and he finds out that he still owes for a car in the scrapyard)
(edb352)

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You obviously have never worked in retail auto sales, if you did you would know a big majority of sales involve a trade that has a finance balance due on the previous vehicle that must be carried over on the next contract. Seems a lot of buyers love to go with four year finance contracts then trade again in less than four years. ;)
mike hunt
Sean wrote:

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Actually the longer the term of the loan the HIGHER the interest, not less.
mike hunt
Eric Toline wrote:

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Re: car payments?? Group: alt.autos.ford Date: Mon, Sep 22, 2003, 9:36pm (EDT+4) From: snipped-for-privacy@mailcity.com
Actually the longer the term of the loan the HIGHER the interest, not less. mike hunt ============================What part of what I wrote didn't you understand? The TOTAL monthly payment of principal and interest will be less over 96 months than 48 but the total of all moneys paid will be more.
Eric
---------------------------- Eric Toline wrote: car payments?? Group: alt.autos.ford Date: Mon, Sep 22, 2003, 5:00pm (EDT+4) From: snipped-for-privacy@cfl.rr.com (edb352) Just 95 more payments and... What's next for U.S. consumers looking to cut car payments? Believe it or not, in some areas, 96-month car loans are bubbling up. <<<<<<<
(et) sure, the monthly payment will be less but interest is going to be massive over the 8 yrs.
People don't seem to care about the interest, just the monthly nut. eric
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I say you need only look as far as the home mortgage industry for creative ideas on how to finance car. I see interest only home loans, 125% home loans, 30 year home loans given to people in their 70's, etc.
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or
The homes don't usually lose value. Vehicles do.
You can even get an unsecured loan (a.k.a., credit card, student loan).
Jeff
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A friend uses a different approach. Never negotiates price.
1. chooses car.
2. tells dealer, " I have xxxx dollars for down payment I want a 48 month loan at xxx dollars a month, you work out the details."
Of course the "xxxx$" are realistic.
Eric
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