Auto Loans: I sometimes watch a YouTube channel with a son interviewing his father, who was a car salesman for many years. They give advice about buying a car. (Never say you're going...

jerryc41 Loc: Catskill Mts of NY

I sometimes watch a YouTube channel with a son interviewing his father, who was a car salesman for many years. They give advice about buying a car. (Never say you're going to pay cash.) Their discussion got me to thinking.

Years ago, the standard auto loan ran for three years. As car prices have risen, but salaries haven't, five years is now a common term. When I was younger, buying a new car was no big deal. Now, it's a major financial decision. Say what you will about inflation, prices are high in relation to salaries.

https://www.youtube.com/results?search_query=yaa

anotherview Loc: California

Buyers tend to look at the monthly payment for a car loan to determine if they can afford the purchase.

jerryc41 wrote:

I sometimes watch a YouTube channel with a son int... (show quote)

JimmyTB

Car prices have indeed gone through the roof. On the other hand I'm at about 295,000 miles on the vehicle I'm now driving with no more than routine maintenance. Although I just dropped it off at the dealership for the 2nd passanger side airbag recall.

agillot

On the other hand , compare the price of a basic house , and a basic car in 1970 .A basic house [ new ] 1000 sq feet was $17000 , a basic car was $ 2500 .Today , a basic car is at , or under $ 20000 , a basic house , depending where you live could be over $ 400 000 . So , that 400k house cost the price of 20 cars .in 1970 7 cars .

melismus Loc: Chesapeake Bay Country

JimmyTB wrote:

Car prices have indeed gone through the roof. On the other hand I'm at about 295,000 miles on the vehicle I'm now driving with no more than routine maintenance. Although I just dropped it off at the dealership for the 2nd passanger side airbag recall.

Must be a Subaru.

JimmyTB

melismus wrote:

Must be a Subaru.

Actually a Toyota Tundra.

jerryc41 Loc: Catskill Mts of NY

I had two Honda Civics, one after the other. The 1997 had about 325,000 miles on it when I traded it for a Fit.

BebuLamar

agillot wrote:

On the other hand , compare the price of a basic house , and a basic car in 1970 .A basic house [ new ] 1000 sq feet was $17000 , a basic car was $ 2500 .Today , a basic car is at , or under $ 20000 , a basic house , depending where you live could be over $ 400 000 . So , that 400k house cost the price of 20 cars .in 1970 7 cars .

Which new are is at or under $20000? I think you can find a 1000 sq feet house for $400000 but it's not typical.

BebuLamar

As far as never say you're paying cash is true. Back in 77 we got better bargain by making the dealer thought we would finance and pay big intested. They were pissed when we paid in cash.

Manglesphoto Loc: 70 miles south of St.Louis

jerryc41 wrote:

I sometimes watch a YouTube channel with a son int... (show quote)

When I bought my 2018 low mileage Grand Caravan in Nov of 2019 I was surprised that they didn't want cash!! and gave no discount for cash.
the sales manager said I could finance the car but had to make payments for at least a year before paying it off Oh well I didn't want to mess with payments sooooo .
In 1969 I bought a New 1969 CJ5 $2710 only options were a rag top w/ doors, a passenger seat and Warn Automatic lockout hubs, today a comparable Jeep $28k, that's over 10x of 1969, wages in 69 was $4.85 hr when I retired in 2017, I was earning $25 hr. a bit over 6x 1969 , The new jeeps are no longer the go anywhere vehicles they were in 1969 in fact the new jeeps are closer to luxury vehicles than SUV's.P rices are high in relation to salaries. Do ya think?

tcthome Loc: NJ

Say what you will about inflation, prices are high in relation to salaries.

https://www.youtube.com/results?search_query=yaa[/quote]

Depends on your tax bracket but, no doubt, over inflated in my opinion. They offer me 0% if a 3 yr is taken. Doesn't pay to go 5 if you don't have to. I hate walking into a car dealer.

traderjohn Loc: New York City

jerryc41 wrote:

I sometimes watch a YouTube channel with a son int... (show quote)

Inflation vs wages. That depends on you and your job.

agillot

All asian makes have a basic model around or under 20 k .

Curtis_Lowe Loc: Georgia

jerryc41 wrote:

I sometimes watch a YouTube channel with a son int... (show quote)

True, But it's not apples to apples the automobile is a different product than years ago, more expensive compared to salary but safer and it last much longer today, not the least is it is much more reliable.

jerryc41 Loc: Catskill Mts of NY

BebuLamar wrote:

As far as never say you're paying cash is true. Back in 77 we got better bargain by making the dealer thought we would finance and pay big intested. They were pissed when we paid in cash.

When I bought my Fit, Honda was offering something like 1% financing - too good to pass up. Another time, the dealer told me to take the dealer's financing to get the financial break and then get my own financing to pay it off. My credit union offers very low rates for auto loans.