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  1. #1
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    Car loan thread. Paging Benny...

    http://jalopnik.com/a-record-32-perc...the-1789425396

    According to a study conducted by Edmunds this year, a record 32 percent, or nearly one-third, of all vehicles offered for trade-ins at U.S. dealerships have negative equity. By rolling over the balance into a new loan, this puts buyers in a continuous cycle of being underwater on their loan, especially since most buyers who roll negative equity into a new loan don’t bring much cash to the table to reduce the balance.
    ......

  2. #2
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    Sep 2008
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    John Oliver had an interesting piece on car loans.

    Denver Dirt Pimp - Feel free to hit me up with any RE questions.

  3. #3
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    I wonder how many of these fuckers in my hood driving Bimmers and Audis and Teslas are in that basket of deplorables. Especially Teslas.

    Let's do some livin'
    After, we die

  4. #4
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    May 2008
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    I need like 5-7k for a new whip

    Benny, hook me up

    U got it
    Zone Controller

    "He wants to be a pro, bro, not some schmuck." - Hugh Conway

    "DigitalDeath would kick my ass. He has the reach of a polar bear." - Crass3000

  5. #5
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    Sonatas are made in Korea by fascists.
    Quando paramucho mi amore de felice carathon.
    Mundo paparazzi mi amore cicce verdi parasol.
    Questo abrigado tantamucho que canite carousel.


  6. #6
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    At least they don't blow up like Samsungs.

    Let's do some livin'
    After, we die

  7. #7
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    Jul 2002
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    Ha...yeah I got a fascist made washing machine that needs to be replaced!
    Quando paramucho mi amore de felice carathon.
    Mundo paparazzi mi amore cicce verdi parasol.
    Questo abrigado tantamucho que canite carousel.


  8. #8
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    Jul 2014
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    This has more to do with depreciation and the rising cost of autos, then people making bad fiscal decisions. (there is some of that, but people have to have cars)

    Pretty much any car, is worth 50% of it's value in 3 years. A Ford Explorer now costs 50k.

    I had a guy trade a car with me, that he bought from me last year. He put 2k miles on it, and it lost 130k. Now that's some baller depreciation.
    "I don't pretend to have all the answers, and I think there's something to be said for that" -One For The Road

    Brain dead and made of money.

  9. #9
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    Dec 2012
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    Benny's got a $4000 road bike he's underwater on.

    https://www.unitusccu.com/personal/p.../bicycle-loans
    "timberridge is terminally vapid" -- a fortune cookie in Yueyang

  10. #10
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    Back in the 5th grade my gym teacher told us to never buy a car on credit. Seemed like a good idea, still does.

  11. #11
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    Quote Originally Posted by old goat View Post
    Back in the 5th grade my gym teacher told us to never buy a car on credit. Seemed like a good idea, still does.
    Nope, not with cheap money, sorry. If you're making 7%, and they offer you a 3% loan,, well, you figure it out. Of course, some people don't realize they're buying something that, eventually, will be worthless. Zero. Fuck, as said above, after the first year, you've lost at least 20%. It's why Benny buys certified used.

    Let's do some livin'
    After, we die

  12. #12
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    Quote Originally Posted by Timberridge View Post
    Benny's got a $4000 road bike he's underwater on.

    https://www.unitusccu.com/personal/p.../bicycle-loans

    I got that covered. Credit card points for my trip to Italy. To ride my bike.

    Let's do some livin'
    After, we die

  13. #13
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    Quote Originally Posted by Benny Profane View Post
    Nope, not with cheap money, sorry. If you're making 7%, and they offer you a 3% loan,, well, you figure it out. Of course, some people don't realize they're buying something that, eventually, will be worthless. Zero. Fuck, as said above, after the first year, you've lost at least 20%. It's why Benny buys certified used.
    Your clichéd response is correct only in a limited sense. As you know, humans tend to make irrational financial decisions. Low interest loans encourage buying more car than you can truly 'afford' if you then lose your job or face a hudge medical expense during that multi year term. Pretending that a 5 yr low interest loan is used because the buyer understands the time value of money is a useful cover story, at least.

    I know beerdrinker and others might be too busy to read the linked article, but it made the point that the many leased cars out there are depressing used car prices of many models, adding to the underwater issue.

  14. #14
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    Nov 2007
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    Quote Originally Posted by Benny Profane View Post
    If you're making 7%. . . .
    If your gramma had balls she'd be your grandpa

  15. #15
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    Quote Originally Posted by frorider View Post
    Your clichéd response is correct only in a limited sense. As you know, humans tend to make irrational financial decisions. Low interest loans encourage buying more car than you can truly 'afford' if you then lose your job or face a hudge medical expense during that multi year term. Pretending that a 5 yr low interest loan is used because the buyer understands the time value of money is a useful cover story, at least.

    I know beerdrinker and others might be too busy to read the linked article, but it made the point that the many leased cars out there are depressing used car prices of many models, adding to the underwater issue.
    I really don't care what it encourages, all I know is that the math works for me, buying a slightly used Subaru with cheap money. Paying cash is kinda dumb, unless that pile of cash is ridiculously big.
    Zuckerberg has a mortgage on his house. Just sayin'.

    Let's do some livin'
    After, we die

  16. #16
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    Quote Originally Posted by old goat View Post
    Back in the 5th grade my gym teacher told us to never buy a car on credit. Seemed like a good idea, still does.
    My folks always told me that a car wasn't an investment. As far as the op's article, is it really news that Americans spend beyond their means?

    Oh, and for the people that say we NEED cars, I laugh. I would bet that a large percentage of car owners live within walking and biking distance or a short bus ride from their place of employment.

  17. #17
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    Quote Originally Posted by Big Steve View Post
    If your gramma had balls she'd be your grandpa
    I've told people here where to find those returns, low cost, medium risk, more than once, but, since you insulted my long lost Bobci, I'm not repeating it.

    Let's do some livin'
    After, we die

  18. #18
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    Dec 2012
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    Pretty soon we won't buy cars. They'll just autonomously show up at your house driverless and disappear after they drop you off at the Thai restaurant, or in Benny's case, CO.
    "timberridge is terminally vapid" -- a fortune cookie in Yueyang

  19. #19
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    Quote Originally Posted by Timberridge View Post
    Pretty soon we won't buy cars. They'll just autonomously show up at your house driverless and disappear after they drop you off at the Thai restaurant, or in Benny's case, CO.
    That's very possible. No joke. Although I'd fly to Denver first.
    Just read this morning that driverless trucks are hitting the road in Ohio. No more I70 for Benny.

    Let's do some livin'
    After, we die

  20. #20
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    Nov 2007
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    My 10 y/o daughter says having two cars is a waste and that the money could be better used to go places and see people. She's already smarter than I...

  21. #21
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    Quote Originally Posted by AaronWright View Post
    My folks always told me that a car wasn't an investment. As far as the op's article, is it really news that Americans spend beyond their means?

    Oh, and for the people that say we NEED cars, I laugh. I would bet that a large percentage of car owners live within walking and biking distance or a short bus ride from their place of employment.
    You'd really be surprised at the last one. Do you have sidewalks in your neighborhood? Does it rain and snow?

    Let's do some livin'
    After, we die

  22. #22
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    Mar 2006
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    Quote Originally Posted by 54-46 View Post
    My 10 y/o daughter says having two cars is a waste and that the money could be better used to go places and see people. She's already smarter than I...
    Air travel is overrated. The 1000 mile radius around the Bay Area is enough excuse to have a good car or two.

  23. #23
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    Feb 2016
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    Westchester, New York
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    We spend money over things aren't necessary and those are the things make our lives more fun.

  24. #24
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    Oct 2003
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    As soon as they get self-driving cars that can handle snow, ice, and a bunch of out-of-state human driven cars driving in the snow and ice like idiots... I'll be so down for the driverless car (as long as it has manual override so I can 4wheel up to the trailhead).

    I am thinking that this won't happen before the 4Runner turns 180 or 200K.

    Buy used.
    Quote Originally Posted by blurred
    skiing is hiking all day so that you can ski on shitty gear for 5 minutes.

  25. #25
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    Mar 2008
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    northern BC
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    I bought my Ranger new 19K now its worth 14K so 1000$ a year in depreciation

    I thot pretty hard about buying a new truck just cuz I can but then I realized that was silly

    if you are going to hang on to a vehical til its done new might be a good idea

    I'm at the thro a little money on tires/battery/major tuneup or get a new truck
    Lee Lau - xxx-er is the laziest Asian canuck I know

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