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96-month car loans wreck your wallet

96-month car loans wreck your wallet

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CY09 Offline
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#1
13-04-2013, 09:23 AM
"96-month car loans wreck your wallet"

http://www.marketwatch.com/story/96-mont...2013-04-12

She's advising against 8 yr car loans but in sg we were there!
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Musicwhiz Offline
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#2
13-04-2013, 09:29 AM
(13-04-2013, 09:23 AM)CY09 Wrote: "96-month car loans wreck your wallet"

http://www.marketwatch.com/story/96-mont...2013-04-12

She's advising against 8 yr car loans but in sg we were there!

Ours was actually worse - 120-month loans (10-year loans) with 0% downpayment (100% financing).

Really cannot imagine the amount of interest paid by then...... Rolleyes
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#3
13-04-2013, 09:36 AM
We are World class .
“risk comes from not knowing what you’re doing.”
I don’t look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.
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NTL Offline
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#4
13-04-2013, 09:49 AM
I have a friend who stretch the car loan to maximum as she believe she can invest and get a better return than the interest paid over the 10yrs period.
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opmi Offline
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#5
13-04-2013, 01:29 PM
(13-04-2013, 09:49 AM)NTL Wrote: I have a friend who stretch the car loan to maximum as she believe she can invest and get a better return than the interest paid over the 10yrs period.

In an asset inflation situation, anyone who borrow and consume first wins.
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Musicwhiz Offline
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#6
13-04-2013, 03:03 PM
(13-04-2013, 09:49 AM)NTL Wrote: I have a friend who stretch the car loan to maximum as she believe she can invest and get a better return than the interest paid over the 10yrs period.

If your friend is paying an average of 4-5% effective interest rate on the car loan, then she must be saying that her investments can average a better return than that over the medium-term. So from this I can conclude that your friend must be a very astute investor!
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#7
13-04-2013, 06:02 PM (This post was last modified: 13-04-2013, 06:25 PM by Temperament.)
(13-04-2013, 06:02 PM)Temperament Wrote: [Image: search?q=debt&client=firefox-a&hs=gey&rl...rce=univ&s]
Cursor over it. Right Click. Select "view image"
Then enjoy or drag looking on the the images/pictures.
Shalom.
[/quote]
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arthur Offline
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#8
13-04-2013, 06:58 PM
(13-04-2013, 01:29 PM)opmi Wrote:
(13-04-2013, 09:49 AM)NTL Wrote: I have a friend who stretch the car loan to maximum as she believe she can invest and get a better return than the interest paid over the 10yrs period.

In an asset inflation situation, anyone who borrow and consume first wins.

Have a look into the historical era AFTER the asset inflation situation.

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NTL Offline
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#9
14-04-2013, 09:08 AM
(13-04-2013, 03:03 PM)Musicwhiz Wrote:
(13-04-2013, 09:49 AM)NTL Wrote: I have a friend who stretch the car loan to maximum as she believe she can invest and get a better return than the interest paid over the 10yrs period.

If your friend is paying an average of 4-5% effective interest rate on the car loan, then she must be saying that her investments can average a better return than that over the medium-term. So from this I can conclude that your friend must be a very astute investor!

While I do not know her investment return like, I do believe that she had did her calculations before taking on such a proposition.
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mysterion Offline
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#10
14-04-2013, 11:15 AM
(14-04-2013, 09:08 AM)NTL Wrote:
(13-04-2013, 03:03 PM)Musicwhiz Wrote:
(13-04-2013, 09:49 AM)NTL Wrote: I have a friend who stretch the car loan to maximum as she believe she can invest and get a better return than the interest paid over the 10yrs period.

If your friend is paying an average of 4-5% effective interest rate on the car loan, then she must be saying that her investments can average a better return than that over the medium-term. So from this I can conclude that your friend must be a very astute investor!

While I do not know her investment return like, I do believe that she had did her calculations before taking on such a proposition.

Wouldn't indexing outperform 4-5% over a 10 year period easily?
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