Are 84-month loans a bad idea? - Page 5

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.

tcal780 · 10-07-2016, 04:55 PM

My $0.02
fight the urge. Give it a couple years. Get your own place. Buy a 2 family home, live in one side, rent out the other to cover or offset the mortgage. Build some equity in something.
Even at 0%, cars are terrible investments. Especially a new SS. Between the gas, insurance, budget for vehicle maintenance, condoms, etc. My guess is you're probably underestimating what this will truly cost you.
Just build yourself a buffer/cushion for now. Believe me, I feel your pain, man. Now, even at 40 and a decent job/salary, this car hits the pocketbook pretty hard.

BigGuy81 · 10-07-2016, 08:02 PM

Jesus Christ. How many threads do you need? You can't afford this car and buying one would be a terrible financial decision.

ChefBorOzzy · 10-07-2016, 08:07 PM

Don't do it.

DougCBJ · 10-07-2016, 08:12 PM

I went 84 months at 2.99% it was a no brainer for me. Lower monthly payments by about 150 per month and only about 1500 more in interest over the life of the loan. 2.99% is cheap borrowing. If this is a car your going to keep for 5 or so years, 84 months is fine, by year 3-4 you'll have equity and the lower montly payment allows me/you to put more into something like your companies 401K if they have it, which if they match should net you a lot more than 2.99%.

laynlo15 · 10-07-2016, 08:21 PM

Yes

enzia35 · 10-07-2016, 08:45 PM

Quote:

Originally Posted by BigGuy81

Jesus Christ. How many threads do you need? You can't afford this car and buying one would be a terrible financial decision.

I just looked at his history and whoa, literally every thread is about buying the car.

Homer2 · 10-07-2016, 08:51 PM

You are young enough to recover from any hit you "might" take.. if something comes along. Laying on your death bed.. it shouldn't be something you wish you had done.

mekirk2 · 10-07-2016, 08:56 PM

Quote:

Originally Posted by Thor142

I'll take a million year loan at 0%. Why wouldn't you? It's free money and crazy to not take it. The value of the money you borrowed will become less simply because it's being outpaced by inflation. Why spend todays dollar today when you can spend it 5 years from now and it's worth the same as tomorrows dollar?

Might have already been said - seems to be a hot topic - but this depends on what you are giving up for that 0%. If you are choosing 0% -OR- cash back, you really have to calculate out the interest. My loan is going to cost about 3500 over the life of the loan (assuming I dont pay it down quicker) but I got nearly 9000 in a cash rebate. They didnt have a 0% option at the time (I financed 49K @ 2.29) but I would have taken the cash rebate over 0%.

In this persons case, I would not. Not because I hate 6-7 year loans, but at his age a 7 year note on a car locks you into that car for some time. My camaro is a second vehicle that I expect to keep well past retirement. Its my mid life motorcycle.

Wait about a year and buy used if you have to have a 2016. The rental fleet will dump them into the network. Or buy a 2015 now used.

DeliveryMan · 10-07-2016, 08:58 PM

Quote:

Originally Posted by BigGuy81

Jesus Christ. How many threads do you need? You can't afford this car and buying one would be a terrible financial decision.

No doubt, I just seen how many threads have been posted. Can't make a decision.

born-to-fish- · 10-07-2016, 09:10 PM

Screw it! Go for it!
When the zombie apocalypse comes you won't need to worry about silly car payments

mekirk2 · 10-07-2016, 09:17 PM

Quote:

Originally Posted by BrianL

I can appreciate having the "wants". We all have them, but you have to stay within your means & look longer term. You still live at home & have college debt to pay off. I can attest being a parent of 2 now grown daughters, that if my kid graduated college (great), had a full time job (also great) but still lived at home & bought a new car vs. saving to get out on their own, I would be pissed about their priorities. And I would ask you to pay some rent at this stage of the game.

Also just catching that he is still living at home. My 2 cents - absolutely do not buy this car. Even if your parents are OK with you living at home, even if they dont care and want you to go buy the car. This is a time in your life where you have to venture out and find your way (used to be after high school - today its shifted to after college). Do yourself a favor and get out on your own financially. You will regret not doing it and will be tied up financially with a long car term and insurance.

Also, girls may dig your car, but will walk away when they find out you live at home with mom and dad. The type girls that go for the car are going for the money and not the car - once they realize the wallet is empty the car will mean nothing.

AdmAnt13 · 10-07-2016, 09:20 PM

I did 84 month, but have $10,000 with trade in and down payment, very low interest and I pay aggressively every month. I did it just to have a more reasonable payment with extended warranty in case times get tougher for any reason. And also, I keep my cars a decade at a time before changing, so I don't care.
Advice is like everyone else, don't get the car of your dreams just to over extend yourself. It's tempting but not worth it. You'll get what you want soon. And it'll probably be a 7th gen or something to that effect that will be even "better."

Waiting46 · 10-07-2016, 09:25 PM

Id recommend putting away a payment / month for a year (and whatever the increase on your insurance will be!)as a down payment. If you can still afford the payments after a year, youll have a good idea if the car will work out long term. Also, youll only have to get a 72 month loan.

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.

10-07-2016, 08:21 PM	#62
laynlo15 Drives: 2022 Lt1 A10 Join Date: Nov 2015 Location: clark, mo Posts: 8,860	Yes __________________ 2022 Lt1 6.2 A10, Maggie 2300, THPSI Port Inj/10 rib, Rotofab, E, Nickey, SCOL, Griptech, RC Bandits, Hoosiers/MT 9.80@142.96 1.44 60ft, 6.34@112 707/669 RWHP/TRQ. 16SS Maggie 2650 9.41@147 1.35 60ft, 5.99@119. 16 C7 A8 10.90@128 Bolt on stuff

10-07-2016, 08:51 PM	#64
Homer2 Drives: 50th Anni.. coming home 11/01 Join Date: Jul 2014 Location: Toronto. Ontario Posts: 1,636	You are young enough to recover from any hit you "might" take.. if something comes along. Laying on your death bed.. it shouldn't be something you wish you had done. __________________ ##################### Built Sept 16/2016 - #2681 of 5955. She came home with me 11/01/16. 50th Anni, 2SS, A8, NPP, NGM Rock Guards, Footwell Lighting, Black Bow Ties, Street Warrior Rotors and Pads, Ceramic Pro, 3M PPF, Oracle Ghosted Side Markers, Kooks 2" headers w/hi flow cats. GPI Stage 1 Cam installed at 305,000 kms.

10-07-2016, 09:20 PM	#69
AdmAnt13 Drives: '16 Red Hot 2SS M6 NPP Join Date: Apr 2016 Location: The Beach, NC Posts: 603	I did 84 month, but have $10,000 with trade in and down payment, very low interest and I pay aggressively every month. I did it just to have a more reasonable payment with extended warranty in case times get tougher for any reason. And also, I keep my cars a decade at a time before changing, so I don't care. Advice is like everyone else, don't get the car of your dreams just to over extend yourself. It's tempting but not worth it. You'll get what you want soon. And it'll probably be a 7th gen or something to that effect that will be even "better." __________________ '16 2SS, M6, Borla Atak

10-07-2016, 04:55 PM	#58
tcal780 Drives: 16 1SS White M6 Join Date: Apr 2016 Location: NEPA Posts: 155	My $0.02 fight the urge. Give it a couple years. Get your own place. Buy a 2 family home, live in one side, rent out the other to cover or offset the mortgage. Build some equity in something. Even at 0%, cars are terrible investments. Especially a new SS. Between the gas, insurance, budget for vehicle maintenance, condoms, etc. My guess is you're probably underestimating what this will truly cost you. Just build yourself a buffer/cushion for now. Believe me, I feel your pain, man. Now, even at 40 and a decent job/salary, this car hits the pocketbook pretty hard.

10-07-2016, 08:02 PM	#59
BigGuy81 Account Suspended Drives: Man Join Date: May 2016 Location: https://t.me/pump_upp Posts: 143	Jesus Christ. How many threads do you need? You can't afford this car and buying one would be a terrible financial decision.

10-07-2016, 08:07 PM	#60
ChefBorOzzy Drives: 2016 F150 Join Date: May 2014 Location: Iowa Posts: 2,196	Don't do it.

10-07-2016, 08:12 PM	#61
DougCBJ Drives: 2016 Blue 2SS Join Date: Mar 2016 Location: Columbus, Ohio Posts: 612	I went 84 months at 2.99% it was a no brainer for me. Lower monthly payments by about 150 per month and only about 1500 more in interest over the life of the loan. 2.99% is cheap borrowing. If this is a car your going to keep for 5 or so years, 84 months is fine, by year 3-4 you'll have equity and the lower montly payment allows me/you to put more into something like your companies 401K if they have it, which if they match should net you a lot more than 2.99%.

10-07-2016, 09:10 PM	#67
born-to-fish- Drives: Fifty 2SS Vert Join Date: Dec 2009 Location: That rock next to Vancouver Posts: 355 View My Garage	Screw it! Go for it! When the zombie apocalypse comes you won't need to worry about silly car payments

10-07-2016, 09:25 PM	#70
Waiting46 Drives: 1981 silver corvette,Hyper Blue 2SS Join Date: May 2015 Location: Ohio Posts: 625	Id recommend putting away a payment / month for a year (and whatever the increase on your insurance will be!)as a down payment. If you can still afford the payments after a year, youll have a good idea if the car will work out long term. Also, youll only have to get a 72 month loan.

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