PR & News 84-month auto loans are accounting for one-fifth of all new-vehicle purchases

[Jeff Kershner]

More people are taking on 84-month auto loans when it comes time to finance new and used cars. By the end of 2022, consumer credit agency Experian found that 84-month loans were underwriting nearly one-fifth of all new-vehicle purchases and 11 percent of used-vehicle purchases, according to Automotive News.

M&T Bank offers auto loans with terms up to 84 months, with 43.74% of loans having an original term of 77–84 months. The loans start at $2,000, and have an APR of 6.89%–15.89%. M&T Bank also offers relationship discounts for customers with qualifying consumer checking accounts.

WOW!!

 

[BillKVMotorCo]

More people are taking on 84-month auto loans when it comes time to finance new and used cars. By the end of 2022, consumer credit agency Experian found that 84-month loans were underwriting nearly one-fifth of all new-vehicle purchases and 11 percent of used-vehicle purchases, according to Automotive News.

M&T Bank offers auto loans with terms up to 84 months, with 43.74% of loans having an original term of 77–84 months. The loans start at $2,000, and have an APR of 6.89%–15.89%. M&T Bank also offers relationship discounts for customers with qualifying consumer checking accounts.

WOW!!

This was as inevitable as 60-month and 72-month loans.

 

[joe.pistell]

someone needs to create a study that compars how cars last longer than ever before against ever longer loan terms. Then, compare the length of ownership of the 60, 72 and 84 month'ers.

 

[Alex Snyder]

someone needs to create a study that compars how cars last longer than ever before against ever longer loan terms. Then, compare the length of ownership of the 60, 72 and 84 month'ers.

It isn't about the long-term repair cost but more about rolling negative equity. Regardless of the term people finance, they still get new car fever after 18 months. And they're still finding ways to cure that fever.

The main question I have is when are too many buyers stuck in their cars to the point where the overall market feels it? And is that possible to see in the car business alone? Is a situation like that brought on by a completely dead economy?

 

[Carsten]

Life of vehicle?
Just last week while getting some repairs done at a Jeep dealer, the service consultant said that my Jeep is too old (2014) and has too many miles (111,xxx hemi 5.7). so I guess you get 3 years over that 7 year loan.

note: I don't know if he was being serious about quality or if it was subliminal marketing.

I've been waiting to see when and what was going to happen to all the folks who bought vehicles during the covid panic.

Have we made it far enough that massive repos are no longer a threat?

Why wouldn't the car market not be a good indicator? It's the second/third most expensive thing you buy besides a house or university education.

 

[kylewilliam]

Life of vehicle?
Just last week while getting some repairs done at a Jeep dealer, the service consultant said that my Jeep is too old (2014) and has too many miles (111,xxx hemi 5.7). so I guess you get 3 years over that 7 year loan.

note: I don't know if he was being serious about quality or if it was subliminal marketing.

I've been waiting to see when and what was going to happen to all the folks who bought vehicles during the covid panic.

Have we made it far enough that massive repos are no longer a threatHave we made it far enough that massive repos are no longer a threat, or should we still be concerned about potential issues with Horizon Federal Credit Union customer service in handling such situations?

Why wouldn't the car market not be a good indicator? It's the second/third most expensive thing you buy besides a house or university education.

I'm not very familiar with the process of paying off something that's currently financed. I took out a loan for my 2009 6R, and the amount financed was $4,777.82, with a finance charge of $1,706.98 and an APR of 12.75% (which I know is high). This brings the total to $6,484.80. The total sales price is $7,970.80, including my down payment of $1,486. My monthly payment is $108.08. If I wanted to pay off the entire loan, what amount would I need to pay? I've already made $1,300 in payments; how do I calculate what I still owe by subtracting that from the total? I hope I explained this clearly, and any help would be appreciated!

 

[Alex Snyder]

I'm not very familiar with the process of paying off something that's currently financed. I took out a loan for my 2009 6R, and the amount financed was $4,777.82, with a finance charge of $1,706.98 and an APR of 12.75% (which I know is high). This brings the total to $6,484.80. The total sales price is $7,970.80, including my down payment of $1,486. My monthly payment is $108.08. If I wanted to pay off the entire loan, what amount would I need to pay? I've already made $1,300 in payments; how do I calculate what I still owe by subtracting that from the total? I hope I explained this clearly, and any help would be appreciated!

The easiest and only way to figure out what your bank is going to release the title for is to call them and get a payoff. Payoffs change daily as there is a per diem of interest charges that are calculated each day, so ask them for a 30 day payoff.