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+--- Thread: Troubling new trend in auto loans (/thread-29691.html)
Troubling new trend in auto loans - chairman - 03-06-2016
financial analyst Mellody Hobson reports that stretch-loans -- loans paid back over a long period of time and popularized during the Great Recession -- come with a huge downside.
The average loan now lasts more than five years. Hobson warns that paying for your car over such a long period renders them like homes, which can end up "underwater." Over the years, not only will you end up paying more in interest, you wind up with a car worth less than the payment you're making.
Re: Troubling new trend in auto loans - Radhica - 03-06-2016
There is no excuse to allow a car dealer to take advantage of you. There is a wealth of free information that can be had with a simple Google search. Some people just don't care to educate themselves
Re: Troubling new trend in auto loans - ketchim - 03-06-2016
A Car depreciates from the time you drive off the lot !
Re: Troubling new trend in auto loans - ketchim - 03-06-2016
A Car depreciates from the time you drive off the lot !
even the car companies like Ford and GM Credit extends the Loan !
Re: Troubling new trend in auto loans - rz3300 - 03-06-2016
Well it certainly makes sense from an economic stand point, and like it is mentioned the value of the car decreases so you are paying the same amount on a depreciable asset, which makes no sense. These loans seem attractive at first because you think you only spending a little at a time, but when you think about it you are paying more in the long run. It just takes some common sense from people, but sometimes that is asking too much.