# 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:** 12\ **Page:** 4
**Author:** ![boardjnky4](https://avatars.discourse-cdn.com/v4/letter/b/96bed5/32.png) [@boardjnky4](https://forums.speedlife.net/u/boardjnky4)\ **Post date:** [March 16, 2016, 7:51am UTC](https://forums.speedlife.net/t/84-month-auto-loans-bad-for-the-industry-for-the-consumer/271549/61 "2016-03-16T07:51:18Z")
> [@LZ](#): > > It will be interesting long term to see what happens to the auto market with most ads being pushed towards a lease and not buy. It will flood the used car market in 3 years. Then used cars will be cheap and shoppers will gravitate towards that. ---
**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:** [March 16, 2016, 8:06am UTC](https://forums.speedlife.net/t/84-month-auto-loans-bad-for-the-industry-for-the-consumer/271549/62 "2016-03-16T08:06:06Z")
> [@maxwell](#): > > 5 years at 1.7% and even then I still felt bad about it. Cheap money, though… Did you put enough down that you’re not upside down on it though? I took a 5 year term on the CX-9 too. Interest rates are so low I’d rather use the money other ways that either make money or make fun. The thing is I put enough down in cash and trade that even on day 1 of my loan I could sell/trade the CX-9 and pay off the loan. Long terms at really low rates are fine as long as you’re smart about it. > [@boardjnky4](#): > > It will flood the used car market in 3 years. Then used cars will be cheap and shoppers will gravitate towards that. ^ This. I’ve seen it happen. Got my Expedition for a steal because 2-3 years before I bought it Ford/GM were flooding cheap SUV leases and it resulted in a glut of 2-3 year old, 20-40k mile used SUV’s hitting the market. ---
**Author:** ![maxwell](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/maxwell/32/6524_2.png) [@maxwell](https://forums.speedlife.net/u/maxwell)\ **Post date:** [March 16, 2016, 8:22am UTC](https://forums.speedlife.net/t/84-month-auto-loans-bad-for-the-industry-for-the-consumer/271549/63 "2016-03-16T08:22:32Z")
> [@JayS](#): > > Did you put enough down that you’re not upside down on it though? I took a 5 year term on the CX-9 too. Interest rates are so low I’d rather use the money other ways that either make money or make fun. The thing is I put enough down in cash and trade that even on day 1 of my loan I could sell/trade the CX-9 and pay off the loan. Long terms at really low rates are fine as long as you’re smart about it. Yeah I’m ahead on it and using the extra money more so for fun at this point, ha. It’s working out well. ---
**Author:** ![93dx\_hatch](https://avatars.discourse-cdn.com/v4/letter/9/90ced4/32.png) [@93dx\_hatch](https://forums.speedlife.net/u/93dx_hatch)\ **Post date:** [March 16, 2016, 9:19am UTC](https://forums.speedlife.net/t/84-month-auto-loans-bad-for-the-industry-for-the-consumer/271549/64 "2016-03-16T09:19:08Z")
> [@boardjnky4](#): > > It will flood the used car market in 3 years. Then used cars will be cheap and shoppers will gravitate towards that. Do you know the percentage of Lease vs. Buy and the increase over the past 5 years to make this statement, like any data to back it up? The issue may not surface on the first 84 month term loan, it will be when the negative equity gets put into the next vehicle on another 84 month loan, and then another. At some point _Lenny Lunchpale_ is not going to be able to stomach the monthly payment on his new F150, due to all the neg equity and high LTV, which result in him not being able to upgrade his F150. Most people do not know that they are upside down on there vehicles. As the article JayS posted states, people are more likely to default on a mortgage before they miss car payments. ---
**Author:** ![BigRon](https://avatars.discourse-cdn.com/v4/letter/b/58956e/32.png) [@BigRon](https://forums.speedlife.net/u/BigRon)\ **Post date:** [March 16, 2016, 12:51pm UTC](https://forums.speedlife.net/t/84-month-auto-loans-bad-for-the-industry-for-the-consumer/271549/65 "2016-03-16T12:51:11Z")
2009 leasing crashed. 2012 industry was ~20%, I think last year was 27% Regarding 84 month it continues to grow. > **[Lease penetration nears 27%; risks ahead?](https://www.autoremarketing.com/financial-services/lease-penetration-nears-27-percent-risks-ahead)** > > After gathering its third-quarter data, Experian Automotive spotted the highest percentage of vehicles leased since the company began tracking the data publicly in 2006. Loans for new vehicles extending 73 to 84 months increased reaching a Q3 record high of 27.5 percent. ---
**Author:** ![somedude](https://avatars.discourse-cdn.com/v4/letter/s/ecd19e/32.png) [@somedude](https://forums.speedlife.net/u/somedude)\ **Post date:** [March 19, 2016, 7:44pm UTC](https://forums.speedlife.net/t/84-month-auto-loans-bad-for-the-industry-for-the-consumer/271549/66 "2016-03-19T19:44:36Z")
7 year loan? great reason to have geico MBI coverage! 7 year 100k bumper to bumper coverage and it is dirty cheap in new york ---
**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:** [October 26, 2018, 1:12pm UTC](https://forums.speedlife.net/t/84-month-auto-loans-bad-for-the-industry-for-the-consumer/271549/67 "2018-10-26T13:12:27Z")
Damn, more than half Canada? > In a nutshell, “long-term financing has exploded in Canada,” the company’s automotive expert Robert Karwel said. At one point earlier this year, **55 per cent** of all new car loans were for at least 84 months. > **[More than half of all Canadian car loans are financed for 7 years or more |...](https://www.cbc.ca/news/business/debt-car-loans-long-term-1.4863737)** > > Canadians are buying more cars than almost ever before, but a closer look reveals they’re taking longer and longer to pay them off, too. ---
**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:** [October 26, 2018, 1:31pm UTC](https://forums.speedlife.net/t/84-month-auto-loans-bad-for-the-industry-for-the-consumer/271549/68 "2018-10-26T13:31:10Z")
Still don’t see this ending well. There’s going to be a whole lot of people upside down on cars worth nothing. ---
**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:** [October 26, 2018, 1:36pm UTC](https://forums.speedlife.net/t/84-month-auto-loans-bad-for-the-industry-for-the-consumer/271549/69 "2018-10-26T13:36:32Z")
So, we saw what happens when a housing bubble bursts. What happens when a car loan bubble bursts? Time to start a re-po company? ---
**Author:** ![ubengineering](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/ubengineering/32/5171_2.png) [@ubengineering](https://forums.speedlife.net/u/ubengineering)\ **Post date:** [October 26, 2018, 1:39pm UTC](https://forums.speedlife.net/t/84-month-auto-loans-bad-for-the-industry-for-the-consumer/271549/70 "2018-10-26T13:39:03Z")
I’d be down to go in on one with someone. On a serious note we NYSpeeder’s should open our own Tim Horton’s and host cruise nights Also second Serious note - how about when the student loan bubble bursts ---
**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:** [February 13, 2019, 2:15pm UTC](https://forums.speedlife.net/t/84-month-auto-loans-bad-for-the-industry-for-the-consumer/271549/71 "2019-02-13T14:15:01Z")
I’d say very few under 30 are “savvy” when it comes to buying cars. This is why we need basic financial education in high schools. > Most of the people who are behind on their bills have low credit scores and are under age 30… > … experts warn there are far fewer restrictions on auto loans, meaning a consumer has to be more savvy about what they are doing when they take out a loan. > **[Record 7 million Americans are 3 months behind on car payments, a red flag...](https://www.seattletimes.com/business/record-7-million-americans-are-3-months-behind-on-car-payments-a-red-flag-for-economy/)** > > "The substantial and growing number of distressed borrowers suggests that not all Americans have benefited from the strong labor market," economists at the New York Fed wrote in a blog post. ---
**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:** [February 13, 2019, 2:52pm UTC](https://forums.speedlife.net/t/84-month-auto-loans-bad-for-the-industry-for-the-consumer/271549/72 "2019-02-13T14:52:54Z")
From your article… > Fewer than 1 percent of auto loans issued by credit unions are 90 days or more late compared with 6.5 percent of loans issued by auto finance companies. What a shock, the people with credit so bad they can’t get a loan from a bank/credit union and go with a “buy here, pay here” dealer are the ones defaulting. Those dealers don’t care. They’re happy to take on these customers. They’ll get the payments they can, repo the POS they were making 20% interest on, then sell it again to the next guy who can’t get a bank loan. [Previous page](https://forums.speedlife.net/t/84-month-auto-loans-bad-for-the-industry-for-the-consumer/271549.md?page=3)