CAMARO6 - View Single Post - Are 84-month loans a bad idea?

NCSD · 10-07-2016, 04:25 PM

I didn't read all the posts, so forgive me if someone else said the same thing.

It all depends on your situation.
Can you afford to live and pay all your existing bills, entertainment and save some money already? Will you be able to do all those things if you buy the car too? If so, then maybe its ok. Is your income stable? If not, don't do it. Will your parents be okay with the idea, since you live at home? I would be ok if my son did it, but everyone's different.

If so,

You should be able to get under 2% interest rates up to 75 months thru a credit union. Go get pre qualified before you go buy the car. If they won't prequalify you, then theres your answer. Don't do it.

As far as long term loans go, we've never had interest rates this low before and we probably will never see them this low again. Its cheap money. The problem is that you will get upside down on the car quickly making small payments and if you have to sell the car quickly you will have to pay out of your pocket to get out of the payments.

The only way it works is if you know this upfront and accept it. If you can get 25% off on the car, you wont get upside down on the car as fast or as bad, but it will eventually happen on a long term loan. Its a fact....

I'm older and I remember being your age, I did some stupid financial things that I regretted, but I also had some of the best times of my life as a result of those stupid financial decisions. Just don't get in over your head an live to regret it. Interest rates are super low, the longer term rates dont cost that much in interest, but you will get upside down on the car making small payments.

If you can live with a 6 cylinder Gm has low lease deals that might be worth looking at.

10-07-2016, 04:25 PM	#57
NCSD Drives: Nightfall, 2SS, A8, MRC, NPP,RE-71R Join Date: Jul 2016 Location: United States Posts: 250	I didn't read all the posts, so forgive me if someone else said the same thing. It all depends on your situation. Can you afford to live and pay all your existing bills, entertainment and save some money already? Will you be able to do all those things if you buy the car too? If so, then maybe its ok. Is your income stable? If not, don't do it. Will your parents be okay with the idea, since you live at home? I would be ok if my son did it, but everyone's different. If so, You should be able to get under 2% interest rates up to 75 months thru a credit union. Go get pre qualified before you go buy the car. If they won't prequalify you, then theres your answer. Don't do it. As far as long term loans go, we've never had interest rates this low before and we probably will never see them this low again. Its cheap money. The problem is that you will get upside down on the car quickly making small payments and if you have to sell the car quickly you will have to pay out of your pocket to get out of the payments. The only way it works is if you know this upfront and accept it. If you can get 25% off on the car, you wont get upside down on the car as fast or as bad, but it will eventually happen on a long term loan. Its a fact.... I'm older and I remember being your age, I did some stupid financial things that I regretted, but I also had some of the best times of my life as a result of those stupid financial decisions. Just don't get in over your head an live to regret it. Interest rates are super low, the longer term rates dont cost that much in interest, but you will get upside down on the car making small payments. If you can live with a 6 cylinder Gm has low lease deals that might be worth looking at. Last edited by NCSD; 10-07-2016 at 04:44 PM.