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Historic Record: 7 Million Auto Loans In Default...

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Historic Record: 7 Million Auto Loans In Default...

 
Old 02-14-2019, 11:42 PM
  #61  
jimmyb
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Originally Posted by xwing View Post
Amen. If you can't pay cash for a car, you can't afford it...
Why would anyone in their right mind use their own CASH to pay for a depreciating item with 0% financing being offered? That's just stupid.
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Old 02-15-2019, 08:09 AM
  #62  
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No down payment, first payment free, Bad Credit? No Problem! We Guarantee Credit Approval!

What could go wrong?
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Old 02-15-2019, 08:34 AM
  #63  
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Originally Posted by 78SA View Post
No down payment, first payment free, Bad Credit? No Problem! We Guarantee Credit Approval!

What could go wrong?
“No payments for 90 days!” 90 days pass and no payment comes in......ok now you have to pay for the car.....no seriously. Dindo, “Say what!?”
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Old 02-15-2019, 08:39 AM
  #64  
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Originally Posted by jimmyb View Post
Why would anyone in their right mind use their own CASH to pay for a depreciating item with 0% financing being offered? That's just stupid.
Depends how big the pile of cash is... personally, I don't want the hassle of dealing with monthly payments, automatic withdrawls, juggling money. Once and done, in and out. No hassle
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Old 02-15-2019, 08:51 AM
  #65  
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Originally Posted by onebadcad View Post
https://www.manheim.com/

You will need someone with a dealer license,,, great deals to be had.
Manheim has been a lot like ebay lately. Used to be great deals but now it's where everybody goes so the prices have gone way up and those that used to slip through just don't anymore.

I make a lot of sales buying at other auctions and flipping straight to Manheim to sell 2 days later. Usually the total amount of work involved is moving a car about 10 miles.

Love me some Manheim.
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Old 02-15-2019, 08:58 AM
  #66  
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Originally Posted by Ragtop_Rob View Post
I don't know how you buy cars, but I buy them already knowing what i'm going to pay before I go to the dealer. So if they are building it in, you are the fool paying for it without getting the advantage.
Cool story. As someone who owns a dealership, I will make this very simple. I 100% guarantee that any dealership (and bank) that you go to has considered all of this and it is built in somewhere. You aren't going to "beat" me. I'm not going to make a deal that I don't want to make. If they take your offer, they're making money. Whether you're paying with cash, direct loan, indirect loan... doesn't matter. If you don't pay what I want to get for a vehicle, I promise you that the next guy will.

What's even better than that is if you think that you somehow beat the system and come back again to give me more of your money next time.

It's really not that complicated.

Think about this for a minute. Why would a creditor offer a 0% loan? Why would they give you tens of thousands of dollars to use for 5-6-7+ years for free? Are they doing it to be nice?

Last edited by RedLS1GTO; 02-15-2019 at 09:03 AM.
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Old 02-15-2019, 09:06 AM
  #67  
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There has never been a more dire need for economics education in our schools. Most people do not understand how money works or the value of it. Personally I do not finance nor would I ever buy new car. At best I would by something 3-4 years old and then it would be driven for 2-300k miles before it was replaced. I just cant handle money not working in my favor regardless whether or not I can easily afford to splurge.

The Millionaire Next Door should be mandatory reading in public schools.
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Old 02-15-2019, 09:15 AM
  #68  
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Originally Posted by RedLS1GTO View Post
Cool story. As someone who owns a dealership, I will make this very simple. I 100% guarantee that any dealership (and bank) that you go to has considered all of this and it is built in somewhere. You aren't going to "beat" me. I'm not going to make a deal that I don't want to make. If they take your offer, they're making money. Whether you're paying with cash, direct loan, indirect loan... doesn't matter. If you don't pay what I want to get for a vehicle, I promise you that the next guy will.

What's even better than that is if you think that you somehow beat the system and come back again to give me more of your money next time.

It's really not that complicated.

Think about this for a minute. Why would a creditor offer a 0% loan? Why would they give you tens of thousands of dollars to use for 5-6-7+ years for free? Are they doing it to be nice?
I have been trying to tell friends and family this for years to no avail. Constantly hear people "I got the best deal, they lost money on me!". Nope, they didn't. Any business if they are doing it right does not sell unless their is profit. I have sales men n our company tell me to think of the volume we could do if we cut prices. Great! That way I could go broke working that much harder.

Car buying is not difficult. Do your research, decide on a fair price you can afford and find the car. Accept dealers are a for profit entity and need to make money. Honestly I think buying cars is much easier and faster due to the internet and info available.
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Old 02-15-2019, 10:16 AM
  #69  
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Credit is a hugh problem in this country which isn't going away. There is too much unsecured debt. People weren't replacing vehicles voluntary prior to 2011. However, natural disasters sold alot of them and continue to do so. When the floods come the used cars flood too. You can't get to work without are car....the economy is so good you will be able to afford it. That only works if raises are in your future. Yesterday I saw an add for free houses for Vets. Nothing down no closing just move in. It's all about sales, and closing ratios. As regulations are reduced loan officers maybe more lenient. They have to meet closing ratios. Everything is driven by spending and sales. Nothing is driven by paying. 0% still has you giving money to the car companies. Cash vs 0% up until the last year it would be losing money if the money was invested. The ROI should have been atleast 3%. The market is too unstable so far to predict. Cash isn't king there are shops the only take cards willing to lose 3% in fees vs taking cash.

Last edited by Kevova; 02-15-2019 at 12:19 PM.
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Old 02-15-2019, 10:17 AM
  #70  
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Originally Posted by jimmyb View Post
You're obviously buying USED cars, which have already taken the big hit on depreciation and financing is not as cheap (no 0% loans on used cars to my knowledge). So, cash it is.
Buying NEW with YOUR cash when no interest/low interest loans are available is just fiscally stupid.
Yep. I buy used. Why would I pay 120k for a car that I can buy in a few years for half that with 15k miles on it?

And even if I wanted to finance one the intrest rates arent bad for people with an 800 score.

buying new is retarded IMO......but thats just my opinion of course.
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Old 02-15-2019, 10:49 AM
  #71  
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I don't buy new. Usually get a car that's 2 to 3 years old with 25,000 to 30,000 miles and some warranty left.
I took out a loan on our last car purchase, because the credit union offered a very low rate and my money was making more where I had it parked.
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Old 02-15-2019, 11:32 AM
  #72  
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Originally Posted by maybelooking View Post
Yep. I buy used. Why would I pay 120k for a car that I can buy in a few years for half that with 15k miles on it?

And even if I wanted to finance one the intrest rates arent bad for people with an 800 score.

buying new is retarded IMO......but thats just my opinion of course.
Careful with that Ramsey "tude", you should be appreciative and thanking the folks who save you thousands, not calling them retards.
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Old 02-15-2019, 11:59 AM
  #73  
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Originally Posted by RedLS1GTO View Post
Free money.

Yea. GM and the others are so nice to be giving these 0% loans and those "discounts". They're definitely not building that into the price.

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Old 02-15-2019, 12:03 PM
  #74  
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Originally Posted by FourPennyDoug View Post
Careful with that Ramsey "tude", you should be appreciative and thanking the folks who save you thousands, not calling them retards.
Oh I can still thank them and be appreciative while simultaneously thinking they dont make very good financial decisions.

"retard" may have been a bit strong.
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Old 02-15-2019, 12:07 PM
  #75  
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Let me know when this starts happening to mortgages. I'll get ready to put my house on the market.
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Old 02-15-2019, 12:26 PM
  #76  
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Originally Posted by Millenium Z06 View Post
Yes, bunch of DA's driving $70k 2500 and 3500 trucks as dailies, those 12 packs of diet Cokes are heavy ...
Don't forget the Euro cars that seem to be very popular amongst certain demographics. At least in the Houston area.
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Old 02-15-2019, 12:51 PM
  #77  
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I buy a new base Honda Accord in cash when the old one reaches 150K miles. I do lots of driving so getting great gas mileage is a plus. Cost per mile is very low with an MSRP in the low 20. I get teased all the time by my co workers who drive their 70+K SUVs while making their 1G monthly payment.

Last edited by SBR; 02-15-2019 at 12:52 PM.
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Old 02-15-2019, 01:27 PM
  #78  
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Originally Posted by maybelooking View Post
Oh I can still thank them and be appreciative while simultaneously thinking they dont make very good financial decisions.

"retard" may have been a bit strong.
Fair enough, but keep in mind when you go to sell that $120,000 vehicle that you paid $60k for the guy who pays $30,000 probably thinks the same about you.
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Old 02-15-2019, 01:42 PM
  #79  
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Originally Posted by FourPennyDoug View Post
Fair enough, but keep in mind when you go to sell that $120,000 vehicle that you paid $60k for the guy who pays $30,000 probably thinks the same about you.
Im fine with that.

What people think about me has never been something I concern myself with much.

I guess in your scenario I would be the "retard" and the guy that bought it new would be a "super duper retard"

Last edited by maybelooking; 02-15-2019 at 01:43 PM.
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Old 02-15-2019, 04:05 PM
  #80  
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Originally Posted by maybelooking View Post
Im fine with that.

What people think about me has never been something I concern myself with much.

I guess in your scenario I would be the "retard" and the guy that bought it new would be a "super duper retard"
well that's certainly one way to look at it.

Funny thing about these types of threads, they tend to turn into a platform to boast about how smart we are.
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