The Average Car Loan Is Now 70 Months! With 0% Becoming The Norm How Long Until 84?

It's frightening to me how people would rather pay longer and "get what they want" than to pay in 5 or less and get what they can afford.

If people really got what they could afford, it would mean an all-cash transaction.

But if 0% interest were available, I'd take the longest term possible since I can invest the remainder at a minimum of 8%.

What a patently stupid statement: "If people really got what they could afford, it would mean an all-cash transaction."

Did you pay for your house in cash? If so, you're a 1%er.

Moronic statement: "But if 0% interest were available, I'd take the longest term possible..." So you have an 84 month loan and the vehicle just out of warranty has a catastrophic failure but you have 4 years to go on your payments. 8% is the best you can do on an investment? OMG

I'm all ears. With the market in the dumps and heading downward, bonds following along, dividends at risk, businesses closing, commercial real estate collecting little or no rent, etc where are you putting your excess capital with such self assurance that you will get an 8% return?

You're slow on the uptake aren't you?

Zoom stock for one. Unless you have deflation, I would take as much money as possible at 0%. Heck you can even get CDs at 2% right now. Might as well maximize the loan at 0, collect some interest on that money, and pay it back w/o paying interest.

Pug, I work in finance for a medium sized company (to remain nameless) and have continual view of current financials and 5-year projections. Right now we have the lowest leverage since 2006, so our balance sheet is massively strong. Even if the global economy doesn't improve over the next five years (impossible), we can comfortably pay dividends the whole time.

And the 8% is for the common shares, which have tons of upside, especially since we are buying shares. Our preferred shares are yielding 11%.

There are a lot of great companies that are way oversold now.

Thank you for your comments. Understood. The intermediate and longer term opportunities and returns are there to be had depending on when and how we come out of this trough. Thanks again. Be well, stay well.

84 mo for mass market car buyers would be more attractive if the warranty matched the term. The up scale market will continue to lease.

You mean like Hyundai?