Be careful!

Don't go over your head in debt.

http://dealbook.nytimes.com/2015/01/.../?ref=business

Telcoman

 

Interesting article.

 

Santander (at one point) owned my loan on a 2007 Hyundai Sonata V6. It was at a reasonable interest rate though.

My last 2 cars have been with Wells Fargo Dealer Services at 1.9% and 2.9%.

 

1.74% through my credit union. You should be able to earn more than that investing.

 

But that is the American way!!!!

Why wait and buy later when I can pay with credit now!!!

I miss the days of easy no down jumbo mortgage loans.

 

Absolutely what is happening and this is a great article that brings it to light. Uneducated ppl making poor decisions which is usually the case.

 

Of course this wouldn't be an issue if . . .

 

I feel bad for some of these people, others not so much because they earned it. I used to work at Subaru selling new and used, two different markets to sell to people. New car buyers knew what they wanted, knew their financials, credit score and debts. Used sometimes were just as educated ; but most of the time had no idea what their usually poor score was, income or how to calculated the monthly expense on a 15,000 car loan.

Santander, Capital one, credit acceptance corp are all fairly low creditor banks, capital one is getting fairly good through its pre-approval process but its strict. Mainly comes down to Fees as noted in that article, lenders dont want to loan money to someone who may or may not make their payments. On the flip side, the dealer bends the customer over by getting them a warranty, gap coverage, paint protection etc.

I agree mostly..sometimes first time borrowers get as much crap as people with poor or reestablishing credit. Although, first time borrowers should have a credit card or 2 showing they can make payments before getting a 8-20k loan etc.

 

Monkey see, monkey do.

Our government runs massive deficits. Corporations make poor decisions and get tax payer bailouts. Why should joe schmoe be any more personally responsible?

BTW, I dont disagree with your post.

 

Penfed still has some of the best rates around. I got in at 1.49 few years ago when I refi'd.

 

I was able to read as far as the caption of the picture that stated the guy lost his car which had a 23.74% interest rate. This isn't a matter of buying a car with cash, it's about being financially reckless and making poor decisions.

 

Kinda like getting a masters degree in women's studies and then being upset that you're waiting tables at Olive Garden.

 

Or like cosigning a note . . . when you're living on food stamps . . . and have no income . . . to buy a BMW (no less!!) . . . so that your out-of-state daughter can "have a car".

Sure, that's reasonable.

 

Exactly! Not all degrees are created equal, and neither are loans.

Put those both together and we actually do have a modern problem, I'd say a bigger issue than car loans - Student loans. Most student loan interest rates are much higher than car loans and even mortgages. 4 years of college can easily set you back 6 figures... and thats in state tuition...

 

You nailed it dead on!! And this is coming from someone with firsthand experience.

My wife is from Japan so when she came to the states for her undergrad, the only loans that she qualified for were private loans from banks (vs subsidized loans offered through financial aid). What made matters worse was that she went to a private university so tuition was that much more expensive. Let's also not forget that since these loans were unsubsidized loans, they accumulated interest while she was still in school and when the interest rates fluctuated across the US, her rates would too. Needless to say, by the time she finished school, she was 80k+ in debt...and that was just her undergrad.