Sanity in car loans

[TheX]

People really need to reassess what they NEED when buying a car, and not what they want. I love watching videos that help people understand the dangers of longer loan terms. A great suggestion I heard was...

"If you can't afford the payments on a 60 month max term, look at other cars"

The longer loan terms have built-in negative equity after just a couple years. One of my neighbors has a nice Bronco, and owes a ton on it. He asked me why I didn't get the big Bronco, it was only $20K more. The answer was easy. I bought what I need.

I get that it's tough to buy what we need instead of what we want. I have conned myself into believing that what I need is actually what I want...and it works well.

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[dwrufus53]

People rationalize that payments are easy. Get what you want and pay for it it over time. But that mentality traps them in fiscal slavery. And sooner or later, life catches up to them and their thinking. Been there, done that. Thankfully that season is long past where I am now. No “keeping up with the Joneses”, no trying to impress anyone. Just thinking about the effects of what you are spending and sometimes “why?”…

Good advice.

 

[MoFoCo]

Anything over 48 months is pretty crazy. Even if you can afford it, writing that check every month just sucks, and doing it for 5-6 years on a car you are underwater on..no thank you.

The number of people behind on their car payments is rising due to longer terms and higher interest rates. Oh, and the average new car price is $50k, and unemployment is rising. https://www.marketplace.org/story/2025/11/12/a-record-number-of-americans-are-behind-on-their-auto-loans

I'm finally debt free on our cars (financed at 0%, thank you Ford) and boy is it a great feeling.

 

[TheX]

I owe $10K on my 2025 OBX Sasquatch. It's three months old and will be paid off in January. I financed $17K to have something on my credit report and get the discount the dealer offered.

Less than $8k left on the house. No other debt.

 

[TheX]

I owe $10K on my 2025 OBX Sasquatch. It's three months old and will be paid off in January. I financed $17K to have something on my credit report and get the discount the dealer offered.

Less than $8k left on the house. No other debt.

Oh, should add the other fact...I'm 66. It took time to do this after a nasty divorce that left me in a couple hundred thousand dollars of ugly debt. The divorce? Totally worth it.

 

[dwrufus53]

Oh, should add the other fact...I'm 66. It took time to do this after a nasty divorce that left me in a couple hundred thousand dollars of ugly debt. The divorce? Totally worth it.

Again, wants vs needs.

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