Car Payment Over 1k a Month?

[zhandfull]

Is your car payment over a thousand a month? You’re not alone!

 

[Done-it-again]

Is your car payment over a thousand a month? You’re not alone!

wont be much longer.......They will just add longer terms..... 7yrs loans here we come...

 

[JFMFG]

wont be much longer.......They will just add longer terms..... 7yrs loans here we come...

I believe they already offer 7 year.

 

[SoCalDave]

Yes

 

[j21black]

I believe they already offer 7 year.

They do - And a dealer will look at you like you are crazy when you tell them you want 36 months

 

[Bobby V]

I believe they already offer 7 year.

Yep...My credit union has offered 7 year loans for years.

 

[zhandfull]

When I bought my JKU used I wanted to stay at or under $500 per month at 60 months. It was hard to find a JKU at $25k OTD. That was after the new model had come out. Still hard to find today, four years later.

Easy to see how a new vehicle payment exceeds 1k a month now days.

 

[HTMike]

This is going to end badly for a lot of people.

 

[HTMike]

I just sold my Hellcat Durango to a lady who was going to pay $1400 a month on it....

 

[Englewood]

Yep...If you want a nice car it's standard. I spoke to a finance guy and he said 1500+++/mo is happening daily.

 

[evantwheeler]

Idiots.

 

[NicPaus]

New F250-350 or Denali diesel. $12-1500 a month. Friends F350 Dually platinum $1500 a month 84 months.

 

[HTMike]

Yep...If you want a nice car it's standard. I spoke to a finance guy and he said 1500+++/mo is happening daily.

And empty savings accounts.

 

[hallett21]

Just made my last 1,000 a month payment on a work truck. 60 month loan.

 

[hallett21]

I just sold my Hellcat Durango to a lady who was going to pay $1400 a month on it....

Smiles per gallon lol

 

[TeamGreene]

No car payments at all.

 

[Englewood]

And empty savings accounts.

I have to agree...My wife and I do pretty well and I even question $1,000/mo...I don't see how anyone taking 75k can afford $1,000/mo on a car.

 

[Bpracing1127]

Jeep @ 19%
Ford @ 25%
Ram @ 36%

all have

trucks are averaging @ 40% or so spend 1K or more a month

 

[HALLETT BOY]

Imagine taking out a 20 year RV loan not knowing you have a 86K balloon payment at the end , it’s happened !

 

[HTMike]

Imagine taking out a 20 year RV loan not knowing you have a 86K balloon payment at the end , it’s happened !

I have never had a loan like this but doesn't it outline the balloon ? How do people not know ??

 

[zhandfull]

Just made my last 1,000 a month payment on a work truck. 60 month loan.

Bought my 7.3 F250 crew cab back in 2001 at $1,000 a month. It was .9% financing at 36 months. It was a great work truck, had 300k miles on it when sold and still running strong.

 

[hallett21]

Imagine taking out a 20 year RV loan not knowing you have a 86K balloon payment at the end , it’s happened !

What?!

Bought my 7.3 F250 crew cab back in 2001 at $1,000 a month. It was .9% financing at 36 months. It was a great work truck, had 300k mikes on it when sold and still running strong.

I’ve got 176k on the clock. A big part of me wants to get into something new so that I get another 100k of warranty.

 

[ltbaney1]

when i bought my truck in May of 20, they offered 7 year financing, i just shook my head. he said it happens daily. they put nothing down, trade in nothing and take the 7 year. i could not imagine paying on a car for 7 years.

 

[Done-it-again]

I believe they already offer 7 year.

Wow..... My last new one was my 17' super duty... so it's been a few years... Crazy......

 

[DWC]

Nope, never had one over $500. I buy used though. Negotiate the price and then determine the amount down to get sub $500.

 

[Done-it-again]

Just made my last 1,000 a month payment on a work truck. 60 month loan.

So did I.......

 

[evantwheeler]

Totally different ballgame when you own a business, can depreciate 100% the first year to offset taxes, and make low interest payments versus an employee making those same payments.

 

[zhandfull]

when i bought my truck in May of 20, they offered 7 year financing, i just shook my head. he said it happens daily. they put nothing down, trade in nothing and take the 7 year. i could not imagine paying on a car for 7 years.

I like to drive off in a new to me vehicle with nothing down.

The scary thing is people trading in and rolling an old vehicle balance into new vehicle loan. Big time upside down!

 

[NicPaus]

I was going to buy a RZR and planned to pay a 1K a month. With 8k down it would still take 2 years to pay it off.

Cost of new trucks hard to avoid 1k a month unless you have $80K laying around to buy 1.

 

[Gonefishin5555]

It really depends on the interest rate. I bought my car in march and still got 3%. I put 5k down and 690/mo. The loan balance drops faster than the depreciation so it’s a net savings. 8% loan and I’d gladly pay $1k a month to pay it off quicker. I’d do 24 or 36 months max

 

[hallett21]

I was going to buy a RZR and planned to pay a 1K a month. With 8k down it would still take 2 years to pay it off.

Cost of new trucks hard to avoid 1k a month unless you have $80K laying around to buy 1.

And money is still pretty cheap to borrow. I’d rather 80k in the bank and a $1500 a month payment.

Edit. Just checked my credit union. Still under 5%

 

[traquer]

Just wait a bit. Better to get a higher rate but save a ton on the purchase price. Just buy CPO/pre-owned with warranty for a good 30% off the new price, things will get back to "normal" in that regard soon IMO

 

[zhandfull]

Imagine taking out a 20 year RV loan not knowing you have a 86K balloon payment at the end , it’s happened !

Nothing good can come from that. Have seen the stories, usually happens to most vulnerable consumers. The ones just concerned about payment.

 

[OldSchoolBoats]

Imagine taking out a 20 year RV loan not knowing you have a 86K balloon payment at the end , it’s happened !

BMW has been doing balloon financing on cars for awhile


This was the 2023 Limited F250 I built for fun yesterday. Check out that payment!!

 

[EmpirE231]

 

[hallett21]

I’ve never heard of balloon financing on anything other than property. Learn something new every day.

 

[Cole Trickle]

I just bought a used 2021 Wrangler and got 2.9% with my CU?. I put over 10k down and the payment is still $700+ a month.

Cars and trucks have gotten completely out of control price wise. Could i afford 1k sure i guess but i don't see myself going through cars/trucks every 2-3 years like the old days until things get back to normal.

Perfect example i got my 2020 6.2 trailboss for 14k off sticker pre covid i believe it was right at 52k otd. Same truck now since they won't deal would be closer to 70k. Just the difference in deals from yesteryear and now the same truck would be $300 more a month......I'm out

 

[ltbaney1]

I like to drive off in a new to me vehicle with nothing down.

The scary thing is people trading in and rolling an old vehicle balance into new vehicle loan. Big time upside down!

i get it, my old man does the same. trades in, but nothing out of pocket for the down. if i had the means to do it, i would to. the only way to make the 36mo payment number affordable was to put a chunk down. i would have rather left that money in savings.

 

[pronstar]

The scary thing is people trading in and rolling an old vehicle balance into new vehicle loan. Big time upside down!

It’s royally fucking small/local banks and credit unions, who often heavily rely on auto loans.

They’re stuck with bad paper because the vehicle ain’t worth what it was a month ago, and they rolled negative equity into the new loan, further compounding their losses.

 

[Jyruiz]

1k a month is what we budget for both our vehicles, if we can't meet that, we keep saving till we have a bigger down. No way would I pay 1k a month for one vehicle.

 

[HALLETT BOY]

I have never had a loan like this but doesn't it outline the balloon ? How do people not know ??

They smudged the buyers copy , couldn’t easily see it

 

[C-Ya]

The last time I financed a car is only because I was offered 0% financing, with no discount for paying cash. That made it an easy decision.

I doubt we are going to see 0% financing anytime soon.

 

[Ace in the Hole]

BMW has been doing balloon financing on cars for awhile

IDK if they are still offering it. When I bought my last 650 in 2016 I did a balloon note..it was actually the last car loan I ever took out.. I had a fat comm check coming at the end of the following summer on a big commercial job and knew it would cover the entire thing. Worked out great in that case. Other than that fuck that and fuck sales tax. Car loans and car prices are out of control. I looked at buying a new IX and training in our x5 PHEV. Even with $50k down the payment was around a grand. Sorry Bri..the x5 has 38k miles on it..you can keep driving that.

I think a lot of people got into trouble on those notes.

 

[hallett21]

It’s royally fucking small/local banks and credit unions, who often heavily rely on auto loans.

They’re stuck with bad paper because the vehicle ain’t worth what it was a month ago, and they rolled negative equity into the new loan, further compounding their losses.

The credit unions are losing business to the dealerships?

 

[Sleek-Jet]

I can't get past spending $500-600/mo on a car. That'll buy a nice new Hyundai these days.

 

[hallett21]

The last time I financed a car is only because I was offered 0% financing, with no discount for paying cash. That made it an easy decision.

I doubt we are going to see 0% financing anytime soon.

Chevy and Ram are offering it. But I think it’s short like 24-36 months.

 

[Done-it-again]

Totally different ballgame when you own a business, can depreciate 100% the first year to offset taxes, and make low interest payments versus an employee making those same payments.

True.....That is why I usually buy in December of that year and can depreciate the whole thing right away..... But you still need to make the monthly payment for the term, unless you pay cash.....

 

[Done-it-again]

Chevy and Ram are offering it. But I think it’s short like 24-36 months.

GMC is or was for 36 months.....

 

[DLC]

CAR payments ???

What the Hell is that ? Never herd of it before

Don’t we all just pay cash?

My 1984 yugo has been been great only has 679,000 miles

 

[evantwheeler]

True.....That is why I usually buy in December of that year and can depreciate the whole thing right away..... But you still need to make the monthly payment for the term, unless you pay cash.....

For sure, you still gotta pay for it but $1500 a month for most businesses is a drop in the bucket and you would have sent a chunk of that money to Uncle Sam anyway, so the true "cost" is much lower than the payment. These kind of payments are not a drop in the bucket for employees, even if you are a high income earner.