97-Month Car Loans

[Nova78]

97-Month Car Loan A Bad Financial Idea, Unless You Like Debt

Assuming you go through the entire 97-month car loan, you’re essentially paying $1,000 a year in interest for that $20,000 car. After eight years the total cost of the vehicle will be $28,000. A subprime borrower with a 20 percent interest rate would pay $52,000, more than double the sticker price.

A 97-month car loan doesn’t sound nearly as attractive anymore, now does it?

Over eight years to pay off a car? "People get driven to do riskier and riskier things."

 

[Mad Scientist]

"Unless you LIKE debt".

That would be EVERY American.

 

[Katzndogz]

I remember when the longest car loan available was 3 years. Then cars got so expensive it became five years. Of course the loan will be longer. The end result will be that a car loan will become more like a rental contract. People won't pay 52,000 for a 20,000 car. They just won't pay it off.

 

[Desperado]

97-Month Car Loan A Bad Financial Idea, Unless You Like Debt

No Kidding, a car loan should not be any longer than the car's warranty.
As they say, there is a sucker born every minute.

 

[t_polkow]

97-Month Car Loan A Bad Financial Idea, Unless You Like Debt

Assuming you go through the entire 97-month car loan, you’re essentially paying $1,000 a year in interest for that $20,000 car. After eight years the total cost of the vehicle will be $28,000. A subprime borrower with a 20 percent interest rate would pay $52,000, more than double the sticker price.

A 97-month car loan doesn’t sound nearly as attractive anymore, now does it?

Over eight years to pay off a car? "People get driven to do riskier and riskier things."

View attachment 25355

Think thats nuts, they are writting 50 year mortgages now

https://www.lendgo.com/lag/mortgage/gt/11/?PHPSESSID=f72ca8ovkl7okgqajkjsgkson6 :cuckoo: