Did you recently take on (or consider) a loan of 84 months or longer on a car purchase?
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Chronic Car Buyers Anonymous (Archived)
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2019 Kia Soul+, 2015 Mustang GT, 2013 Ford F-150, 2000 Chrysler Sebring convertible
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
New car shoppers continue to pay record levels, and many are funding their purchases with record-level loan amounts that teeter into delinquencies and eventually, negative equity, or owing more than the car is worth. Recent reports from Edmunds and Bloomberg found that high interest rates coupled with high new car prices and cooling used car values have found many Americans upside down on their car loans.
The average new car interest rate rose to 6.5% in Q4 of 2022, up from 4.1% a year earlier, according to data from Edmunds. The confluence of high new car prices and higher interest rates means that borrowers owe more and are taking out longer, more expensive loans to finance their purchase.
The average term limit of a new car loan is 70 months, which has stayed relatively even for the past few years. The difference now is the monthly payment has ballooned to $717 per month in Q4 of 2022, up from $659 a year ago. Nearly 16% of new car borrowers are paying more than $1,000 per month—a record—due to the double whammy of high new car prices and high interest rates.
2024 Jeep Grand Cherokee L Limited Velvet Red over Wicker Beige
2024 Audi Q5 Premium Plus Daytona Gray over Beige
2017 BMW X1 Jet Black over Mocha
https://www.facebook.com/groups/1674050486159173/permalink/3614969588733910/?sale_post_id=3614969588733910
Or if you want something a little flashier.
https://www.facebook.com/groups/1674050486159173/permalink/3614771415420394/?sale_post_id=3614771415420394
the rest, well, let's just say they are quite needy.
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
Not saying I disagree, just find it interesting.
2024 Audi Q8 e-tron - 2017 911 C4S - 2025 BRZ - 2023 A6 Allroad - 2024 Genesis GV60 - 2019 Cayman
I've gotta think it's price and maybe styling, which is obviously subjective. It seems as though any of their refreshes simply address aesthetics. What's that saying about lipstick and pigs?
Now I'm off to check out the QX60.
2024 Audi Q8 e-tron - 2017 911 C4S - 2025 BRZ - 2023 A6 Allroad - 2024 Genesis GV60 - 2019 Cayman
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
$27 labor (0.3 hours)
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It was "a different time."
2024 Jeep Grand Cherokee L Limited Velvet Red over Wicker Beige
2024 Audi Q5 Premium Plus Daytona Gray over Beige
2017 BMW X1 Jet Black over Mocha
Plus for me it's a matter of what you see, what you know about. I don't pay much attention to where the cheap shoes that I buy are made, but I did avoid Nike for several years due to all of the publicity about their sweatshops.
Weren't you considering a Z at one point?
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2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
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2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
Yeah, if I got a gift card to a Nissan/Infinti dealer, I’d probably ask if it also applied to the used lot before making a decision.
The original Q45 has never been topped.
25 NX 450h+ / 24 Sienna Plat AWD / 23 Civic Type-R / 21 Boxster GTS 4.0 / 03 Montero Ltd
Even the new Z received lukewarm reviews.
Mine: 1995 318ti Club Sport-2020 C43-1996 Speed Triple Challenge Cup Replica
Wife's: 2021 Sahara 4xe
Son's: 2018 330i xDrive
Was hard to upset the car on A/S tires, finally with some shenanigans I got some noise out of the tires but only by turning sharply. It handles well enough for what it is. An emergency brake made the car make a loud shuttering noise.
I thought the sensors showing me a dog with pedestrians graphically crossing the crosswalk in front of me on the big screen to be pretty good and accurate; made me trust that I could drive looking at the screen rather than out the windshield. But why not just look out the windshield, I think CR is right that this is a distraction that may lead to deaths and collisions.
The sounds system and seats and adjustments all seemed good enough. The plastics can be a bit downgraded. No rattles. I can see why Tesla's been successful and popular.
In CA you get $3,000 on top of the Federal $7,500 if you make less than $130K/year.
That's the only way I find it competitive, in the low 40's it doesn't make sense to me value wise.
In my poor days I went strictly used and didn’t buy a new car for 22 years. Instead I bought hand me downs from relatives who I knew took good care of their cars. Drove them into the ground and then looked for another cheapo. Never had to take out a loan because I put money aside for the next one.
The behavior some people display seems almost self destructive.
2019 Kia Soul+, 2015 Mustang GT, 2013 Ford F-150, 2000 Chrysler Sebring convertible
2019 Kia Soul+, 2015 Mustang GT, 2013 Ford F-150, 2000 Chrysler Sebring convertible
2019 Kia Soul+, 2015 Mustang GT, 2013 Ford F-150, 2000 Chrysler Sebring convertible
and now, I wait and see what happens!
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
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2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
2024 Audi Q8 e-tron - 2017 911 C4S - 2025 BRZ - 2023 A6 Allroad - 2024 Genesis GV60 - 2019 Cayman
2019 Kia Soul+, 2015 Mustang GT, 2013 Ford F-150, 2000 Chrysler Sebring convertible
2019 Kia Soul+, 2015 Mustang GT, 2013 Ford F-150, 2000 Chrysler Sebring convertible
QX60 is the equivalent to the Pathfinder.
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2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
but my son (the disease is genetic apparently) came up with the same convoluted plan to flip 2 Mavericks and the RDX into the snazzy X3 I found and a Miata. Seems like a solid plan to me! Just need to find the cheaper/beater PU to round out the fleet.
very odd that after having the Maverick for a year, the wife might have been more attached to having a truck than I was, and definitely wants to keep one around.
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
Just a side note here before I begin. I don’t know if I mentioned that Son #1 is also unemployed. It happened right before Thanksgiving of 2022. He was waiting for it to happen and thought it would happen 2 years ago. When it didn’t he was considering just quitting so he could devote more time to his flip and house rental biz but figured he might as well get a severance package which he did. He even said, “that old saying about good things come to those who wait is true”. Things must be different today than when I worked because if I was ever laid off I’d have been more concerned about where my next wiener was coming from than buying 2 cars within a month. I’m now convinced his end of the flip houses are doing better than my end. I should get in touch with my CPA poster buddy @snakeweasel who hangs out in the Cars and Conversations site to review the books for me.
OK, now back to the car he bought for his 16 year old son who still only has his permit:
He bought a 2005 Mini Cooper S via a private sale from a guy who lives somewhere around Richmond VA (at least he didn’t go to the other side of the country, Portland Oregon, like he did when he bought his 2018 X3 M240i and had it shipped). The car just turned 65K miles on the trip home. He paid $6500 for it once he negotiated the price down from $7200 because the PPI that was done by a BMW indie shop that was recommended by his local BMW indie shop, said the tires should be replaced immediately (not in a few thousand miles like the owner thought) and he found a leaking power steering hose. Everything thing else was fine especially the body since the car was initially bought in Florida. The guy in VA that he bought it from had it for 8 years.
When my Son talked to the indie guy about the car before he got the report my Son said, “that’s all”? and the guy said that’s it, even the brakes should give you a good 6 to 8K miles before you have to worry about them. When my Son told the guy the car was for his 16 year old Son the indie guy said, “Oh, make that 4K miles”.
jmonroe
'18 Legacy Limited with 3.6R (Mrs. j's)
Good to hear you came away unscathed. It was very windy when we came out of the restaurant tonight but as far as I can tell the Willow trees at the back of my yard that lead into the woods seem to be still standing. I’ll know better tomorrow morning.
I hope everyone else in this area is OK too.
jmonroe
'18 Legacy Limited with 3.6R (Mrs. j's)
Mine: 1995 318ti Club Sport-2020 C43-1996 Speed Triple Challenge Cup Replica
Wife's: 2021 Sahara 4xe
Son's: 2018 330i xDrive
Like our iPhones?
2001 Prelude Type SH, 2022 Highlander XLE AWD, 2025 Camry SE AWD
original MSRP was just about $20,000. Crazy times we live in!
now she is peeved that they "ripped her off" for only $3,000 or so equity when getting her out of a $225ish per month lease after 33 months! Ended up with a real net lease of about $150 so hard to complain about that!
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
jmonroe
'18 Legacy Limited with 3.6R (Mrs. j's)
The Maverick we have on order is for our son to drive. I noticed this week that it says “in production” so that’s good news!
We were hesitant about buying a Tesla but so far we love the model 3 long range AWD we got in June 2022. It’s got over 14k miles already! No problems with the car, we have had one tire and a windshield to replace…wife plans to keep it 3-4 years but no more. We will see.
@stickguy
I think I found your next pickup truck
2019 Kia Soul+, 2015 Mustang GT, 2013 Ford F-150, 2000 Chrysler Sebring convertible
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
There are many theories but this makes the most sense to me- we are basically in another cash for clunkers situation. Because of the reduced output of factories from the past few years there is an overall reduction of inventory which is keeping prices high, new and used.
Much can change this year as the economy gets better or worse, repos increase or don’t, etc.
Just my thoughts, could be right, could be totally wrong.
plus, while this is expensive for a Fit, it is cheap compared to other newer cars (3 years old, 22k miles). Maybe they figure people are desperate?
prices crash first at the auctions. I watch some videos (the flying wheels guy does a pretty good job reporting on this) that indicate bids were way down but initially it just led to a bunch of no sales. Eventually dealers have to cut and run though. So wholesale going down (well, unless you are selling a Maverick!) but that has not translated much to retail it seems.
new cars are a much better buy if you can be a little patient to find or wait for one. The Honda dealers up here are selling at straight sticker. Seems like a better deal to get a new 2023 at sticker, than a 2-3 YO one for almost as much if not more.
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
2017 Cadillac ATS Performance Premium 3.6