84 Month Auto Loans: Bad For The Industry? For The Consumer?


It will flood the used car market in 3 years. Then used cars will be cheap and shoppers will gravitate towards that.


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.

^ 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.


Yeah I’m ahead on it and using the extra money more so for fun at this point, ha. It’s working out well.


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.


2009 leasing crashed. 2012 industry was ~20%, I think last year was 27%

Regarding 84 month it continues to grow.

Loans for new vehicles extending 73 to 84 months increased reaching a Q3 record high of 27.5 percent.


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


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.


Still don’t see this ending well. There’s going to be a whole lot of people upside down on cars worth nothing.


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?


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