# 84 Month Auto Loans: Bad For The Industry? For The Consumer? **URL:** \ **Category:** NYSpeed Automotive\ **Created:** [January 26, 2015, 12:07pm UTC](https://forums.speedlife.net/t/84-month-auto-loans-bad-for-the-industry-for-the-consumer/271549 "2015-01-26T12:07:18Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![Onyx\_Z32](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/onyx_z32/32/7581_2.png) [@Onyx\_Z32](https://forums.speedlife.net/u/Onyx_Z32)\ **Post date:** [January 26, 2015, 12:07pm UTC](https://forums.speedlife.net/t/84-month-auto-loans-bad-for-the-industry-for-the-consumer/271549/1 "2015-01-26T12:07:18Z")
What do you guys think? 7 years seems like a LONG time to have an auto loan. > Automakers are increasingly selling vehicles with 84-month loans that reduce monthly payments while making it tougher to repay them faster than cars lose value > > More than 1 in 4 new car loans in October and November were 73 to 84 months long, according to Experian PLC. The share of new car loans at those term lengths was less then 10 percent in 2009 and 2010. > **[Honda warns against 'stupid' loans driving U.S. sales gains](https://www.japantimes.co.jp/news/2015/01/21/business/honda-warns-against-stupid-loans-driving-u-s-sales-gains/)** > > A top U.S. executive at Honda Motor Co. said competitors are doing 'stupid things' to boost auto sales, including making seven-year-long car loans that harm buyers. ---
**Author:** ![LZ1](https://avatars.discourse-cdn.com/v4/letter/l/7ab992/32.png) [@LZ1](https://forums.speedlife.net/u/LZ1)\ **Post date:** [January 26, 2015, 12:13pm UTC](https://forums.speedlife.net/t/84-month-auto-loans-bad-for-the-industry-for-the-consumer/271549/2 "2015-01-26T12:13:05Z")
Well car prices keep going up in America and wages haven’t increased at the same rate… ---
**Author:** ![Tbirdsc1](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/tbirdsc1/32/7487_2.png) [@Tbirdsc1](https://forums.speedlife.net/u/Tbirdsc1)\ **Post date:** [January 26, 2015, 12:17pm UTC](https://forums.speedlife.net/t/84-month-auto-loans-bad-for-the-industry-for-the-consumer/271549/3 "2015-01-26T12:17:28Z")
Great for industry, great for banks holding the loans…HORRIBLE for consumers in reality, it allows them to drive a car they really can’t afford. Those 1 in 4 people…probably 95% around way upside down in that loan vs current mkt value. Plus by the time they are paying toward the tail end of the loan, now add in higher maintenance costs, etc. ---
**Author:** ![boardjnky4](https://avatars.discourse-cdn.com/v4/letter/b/96bed5/32.png) [@boardjnky4](https://forums.speedlife.net/u/boardjnky4)\ **Post date:** [January 26, 2015, 12:21pm UTC](https://forums.speedlife.net/t/84-month-auto-loans-bad-for-the-industry-for-the-consumer/271549/4 "2015-01-26T12:21:47Z")
> [@LZ](#): > > Well car prices keep going up in America and wages haven’t increased at the same rate… This. ---
**Author:** ![LZ1](https://avatars.discourse-cdn.com/v4/letter/l/7ab992/32.png) [@LZ1](https://forums.speedlife.net/u/LZ1)\ **Post date:** [January 26, 2015, 12:31pm UTC](https://forums.speedlife.net/t/84-month-auto-loans-bad-for-the-industry-for-the-consumer/271549/5 "2015-01-26T12:31:59Z")
> [@Tbirdsc1](#): > > Great for industry, great for banks holding the loans…HORRIBLE for consumers in reality, it allows them to drive a car they really can’t afford. > Those 1 in 4 people…probably 95% around way upside down in that loan vs current mkt value. Plus by the time they are paying toward the tail end of the loan, now add in higher maintenance costs, etc. On the other side of that some car do have 10 year 100k warranty ---
**Author:** ![Onyx\_Z32](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/onyx_z32/32/7581_2.png) [@Onyx\_Z32](https://forums.speedlife.net/u/Onyx_Z32)\ **Post date:** [January 26, 2015, 12:35pm UTC](https://forums.speedlife.net/t/84-month-auto-loans-bad-for-the-industry-for-the-consumer/271549/6 "2015-01-26T12:35:50Z")
I thought 1 in 4 was REALLY high. The term used to be based on the cost of the vehicle, etc. so you couldn’t get a long term loan for something like a $30k car, but maybe that’s changed? @Beck? ---
**Author:** ![Tbirdsc1](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/tbirdsc1/32/7487_2.png) [@Tbirdsc1](https://forums.speedlife.net/u/Tbirdsc1)\ **Post date:** [January 26, 2015, 12:41pm UTC](https://forums.speedlife.net/t/84-month-auto-loans-bad-for-the-industry-for-the-consumer/271549/7 "2015-01-26T12:41:48Z")
> [@LZ](#): > > On the other side of that some car do have 10 year 100k warranty True, but I’m guessing the majority of high dollar cars being put on the long term notes are not 3-40k Kia’s or other 10 yr warranty vehicles. I thought the 1 in 4 seemed high too, not a good sign. I will be glad to pay my raptor off in 48 months and my warranty goes 7 yr 100k miles. ---
**Author:** ![JayS](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/jays/32/15375_2.png) [@JayS](https://forums.speedlife.net/u/JayS)\ **Post date:** [January 26, 2015, 12:59pm UTC](https://forums.speedlife.net/t/84-month-auto-loans-bad-for-the-industry-for-the-consumer/271549/8 "2015-01-26T12:59:00Z")
Seems like a terrible idea. The government better pass a law. 🖕 ---
**Author:** ![newman](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/newman/32/7569_2.png) [@newman](https://forums.speedlife.net/u/newman)\ **Post date:** [January 26, 2015, 1:07pm UTC](https://forums.speedlife.net/t/84-month-auto-loans-bad-for-the-industry-for-the-consumer/271549/9 "2015-01-26T13:07:09Z")
I knew a girl who owed nearly 30 grand on a 12 year old Mitsubishi Eclipse. ---
**Author:** ![boardjnky4](https://avatars.discourse-cdn.com/v4/letter/b/96bed5/32.png) [@boardjnky4](https://forums.speedlife.net/u/boardjnky4)\ **Post date:** [January 26, 2015, 1:11pm UTC](https://forums.speedlife.net/t/84-month-auto-loans-bad-for-the-industry-for-the-consumer/271549/10 "2015-01-26T13:11:35Z")
> [@Tbirdsc1](#): > > True, but I’m guessing the majority of high dollar cars being put on the long term notes are not 3-40k Kia’s or other 10 yr warranty vehicles. > I thought the 1 in 4 seemed high too, not a good sign. I will be glad to pay my raptor off in 48 months and my warranty goes 7 yr 100k miles. I think you are under-estimating the financial stupidity level of the american people. A $40k Kia is the exact car that I would expect a 7 year loan on. - - - Updated - - - > [@newman](#): > > I knew a girl who owed nearly 30 grand on a 12 year old Mitsubishi Eclipse. Probably 2 cars worth of negative equity rolled into a 14% loan… ---
**Author:** ![Beck](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/beck/32/28683_2.png) [@Beck](https://forums.speedlife.net/u/Beck)\ **Post date:** [January 26, 2015, 1:12pm UTC](https://forums.speedlife.net/t/84-month-auto-loans-bad-for-the-industry-for-the-consumer/271549/11 "2015-01-26T13:12:04Z")
> [@Onyx Z32](#): > > I thought 1 in 4 was REALLY high. The term used to be based on the cost of the vehicle, etc. so you couldn’t get a long term loan for something like a $30k car, but maybe that’s changed? @**[Beck](http://www.nyspeed.com/member.php?u=5819)**? No limits or guidelines. Only credit and model year is what they base 84 month decisions on. A lot of banks go by the “11 Year rule”, meaning the car can’t ever be over 11 years old during any point of the loan. (ie - you can get 5 years on a 6 year old car, 7 years on a 4 year old car etc.) ---
**Author:** ![newman](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/newman/32/7569_2.png) [@newman](https://forums.speedlife.net/u/newman)\ **Post date:** [January 26, 2015, 1:34pm UTC](https://forums.speedlife.net/t/84-month-auto-loans-bad-for-the-industry-for-the-consumer/271549/12 "2015-01-26T13:34:50Z")
> [@Beck](#): > > No limits or guidelines. Only credit and model year is what they base 84 month decisions on. A lot of banks go by the “11 Year rule”, meaning the car can’t ever be over 11 years old during any point of the loan. (ie - you can get 5 years on a 6 year old car, 7 years on a 4 year old car etc.) 11 years on a new car! ---
**Author:** ![Joe](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/joe/32/7219_2.png) [@Joe](https://forums.speedlife.net/u/Joe)\ **Post date:** [January 26, 2015, 1:41pm UTC](https://forums.speedlife.net/t/84-month-auto-loans-bad-for-the-industry-for-the-consumer/271549/13 "2015-01-26T13:41:50Z")
Keep that money coming to the banks, so they can keep it coming to me :tup: 7 years at 13.9 APR? Go for it! I know you really want that new Mercedes CLA…treat yourself ---
**Author:** ![theblue](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/theblue/32/5074_2.png) [@theblue](https://forums.speedlife.net/u/theblue)\ **Post date:** [January 26, 2015, 2:05pm UTC](https://forums.speedlife.net/t/84-month-auto-loans-bad-for-the-industry-for-the-consumer/271549/14 "2015-01-26T14:05:00Z")
It all depends on the rates. I’ll always take the longest term if the rate is low enough. I see it as a self regulating industry where overextending credit to the consumer bites the lender IF they get too greedy. I’m fine with some limits to stop completely insane predatory. ---
**Author:** ![boardjnky4](https://avatars.discourse-cdn.com/v4/letter/b/96bed5/32.png) [@boardjnky4](https://forums.speedlife.net/u/boardjnky4)\ **Post date:** [January 26, 2015, 2:34pm UTC](https://forums.speedlife.net/t/84-month-auto-loans-bad-for-the-industry-for-the-consumer/271549/15 "2015-01-26T14:34:09Z")
Funny part is I talk shit, but took a 12 year on my boat lol. I’ll pay it off in half that though and got a decent rate considering it’s a toy. ---
**Author:** ![Joe](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/joe/32/7219_2.png) [@Joe](https://forums.speedlife.net/u/Joe)\ **Post date:** [January 26, 2015, 2:54pm UTC](https://forums.speedlife.net/t/84-month-auto-loans-bad-for-the-industry-for-the-consumer/271549/16 "2015-01-26T14:54:02Z")
I mean, if you need liquidity, free (or next to free) money is free money. If anything you want to be upside down if you’re using it for that reason, so that if anything ever happens and you get foreclosed on, they get a less valuable piece of property. If you’re paying off higher debt or getting a higher rate of return, absolutely. That said, I’d say the number of people who make the decision to go long based on financial reasons like that is easily \<10% and probably \<5%. ---
**Author:** ![05OrangeSS](https://avatars.discourse-cdn.com/v4/letter/0/eada6e/32.png) [@05OrangeSS](https://forums.speedlife.net/u/05OrangeSS)\ **Post date:** [January 26, 2015, 3:22pm UTC](https://forums.speedlife.net/t/84-month-auto-loans-bad-for-the-industry-for-the-consumer/271549/17 "2015-01-26T15:22:22Z")
You’d be surprised how cheap of an interest rate you can get on an 84 month loan. ---
**Author:** ![Beck](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/beck/32/28683_2.png) [@Beck](https://forums.speedlife.net/u/Beck)\ **Post date:** [January 26, 2015, 3:38pm UTC](https://forums.speedlife.net/t/84-month-auto-loans-bad-for-the-industry-for-the-consumer/271549/18 "2015-01-26T15:38:27Z")
> [@newman](#): > > 11 years on a new car! I’ve got a guy! You never texted back. ---
**Author:** ![boardjnky4](https://avatars.discourse-cdn.com/v4/letter/b/96bed5/32.png) [@boardjnky4](https://forums.speedlife.net/u/boardjnky4)\ **Post date:** [January 26, 2015, 5:09pm UTC](https://forums.speedlife.net/t/84-month-auto-loans-bad-for-the-industry-for-the-consumer/271549/19 "2015-01-26T17:09:47Z")
> [@05OrangeSS](#): > > You’d be surprised how cheap of an interest rate you can get on an 84 month loan. That doesn’t make it a good deal. Longer term equals more interest paid. ---
**Author:** ![Tbirdsc1](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/tbirdsc1/32/7487_2.png) [@Tbirdsc1](https://forums.speedlife.net/u/Tbirdsc1)\ **Post date:** [January 26, 2015, 5:46pm UTC](https://forums.speedlife.net/t/84-month-auto-loans-bad-for-the-industry-for-the-consumer/271549/20 "2015-01-26T17:46:59Z")
> [@boardjnky4](#): > > Funny part is I talk shit, but took a 12 year on my boat lol. I’ll pay it off in half that though and got a decent rate considering it’s a toy. Lol boats are a little different though…looking into a 15yr for our next boat. Boat payment is a “unneeded” expense and I can see stretching a little more, plus the rate doesn’t jump much on them…plus I don’t feel like putting 100k over 5 yrs on something that gets used 5 months out of the yr at best. Lol It’s the ppl that SHOULD be spending 35k on a car, but wait if I go to a 84 month…shit I can get me a Mercedes! [Next page](https://forums.speedlife.net/t/84-month-auto-loans-bad-for-the-industry-for-the-consumer/271549.md?page=2)