BMW
X7 and XM
forum
BMW Garage BMW Meets Register Search Today's Posts Mark Forums Read
BIMMERPOST Universal Forums General Automotive (non-BMW) Talk + Photos/Videos Complete collapse of the used car market?

Post Reply
 
Thread Tools Search this Thread
      04-05-2020, 01:50 PM   #23
DarkstarZero
Lieutenant Colonel
DarkstarZero's Avatar
United_States
1014
Rep
1,719
Posts

Drives: Daytona 95 M3, X7 M50, e92 M3,
Join Date: Nov 2007
Location: Washington DC

iTrader: (6)

Quote:
Originally Posted by Bongoxxx View Post
What reputable Financial Institution would even offer a 10 year auto loan?
Most of them.

BMW and Merc's official version is a balloon with refinancing at the end, essentially a 10-12 year auto loan.
Attached Images
  
__________________
BMW CCA Track Instructor
Join to win a M School Day at the Performance Center!
Enter Referral ID: 420186
Appreciate 1
wdb4673.00
      04-05-2020, 10:44 PM   #24
premier3is
Major
premier3is's Avatar
1627
Rep
1,002
Posts

Drives: 2019 BMW 330i M-Sport
Join Date: Jul 2019
Location: CA

iTrader: (0)

Quote:
Originally Posted by BzsBimmer View Post
Who gets a 10 year loan at 12% interest so they can afford it or have a low monthly payment? Especially for a luxury vehicle?

Your loan officer might be exaggerating a bit much.

There will be a meltdown in the financial markets but my biggest concern is that this C19 may never go away until a vaccine comes out. With global contact, this could just end up being a cyclical crisis.
If people are truly getting 10yr loans at 12% interest for a car... 1. You REALLY can't afford it and 2. You need to take some financial courses ASAP on managing money. 3. Get some help for how stupid you are.
Appreciate 6
Humdizzle6024.00
5.M0NSTER3353.50
Germanauto9665.50
pz6193274.00
BigHunk269.50
      04-05-2020, 10:53 PM   #25
chris719
Major General
7272
Rep
7,252
Posts

Drives: '08 M Roadster
Join Date: Oct 2007
Location: NJ

iTrader: (0)

Quote:
Originally Posted by premier3is View Post
If people are truly getting 10yr loans at 12% interest for a car... 1. You REALLY can't afford it and 2. You need to take some financial courses ASAP on managing money. 3. Get some help for how stupid you are.
I am not surprised because we don't do ANY financial education of the general population in this country unless your local high school has an elective or something. People are financially illiterate and easily talked into buying things they cannot afford. Corporate America does not mind this one bit.
Appreciate 0
      04-06-2020, 01:35 AM   #26
eluded
2JZ-GTE
eluded's Avatar
Bulgaria
2959
Rep
3,948
Posts

Drives: 340 6MT, 50e, others
Join Date: Nov 2015
Location: Sofia

iTrader: (0)

.
Attached Images
 
Appreciate 0
      04-06-2020, 08:09 AM   #27
New2Roundel
Captain
465
Rep
804
Posts

Drives: Some fun stuff
Join Date: Jun 2015
Location: Philly, PA

iTrader: (0)

Garage List
Quote:
Originally Posted by premier3is View Post
If people are truly getting 10yr loans at 12% interest for a car... 1. You REALLY can't afford it and 2. You need to take some financial courses ASAP on managing money. 3. Get some help for how stupid you are.
I find this hard to believe this is happening on any modern luxury car. It sounds like the situation at a Mitsubishi or Nissan dealer. Or one of those fly-by-night used car lots selling beaten 20 yo S class mercedes for $10k. I don't think there's going to be much of a sustained dip in auto values. Most banks are trying to do what they can to make sure people can stay in their cars and houses, so deferring payments and such are not uncommon. This should hopefully prevent a massive sell-off of higher end vehicles, thereby tanking resale values. I mean the whole purpose of the financial rescue legislation is to prevent complete collapse. I know many people here are wishing and hoping for financial ruin, but it seems a bit unlikely. Looks like we're nearing the apex of the infection and even data from NY is looking a smidge better.

There may be a dip in used car prices, but I see it to be very unlikely that you're buying $20k mint condition 993s for example.
Appreciate 0
      04-06-2020, 08:27 AM   #28
Alfisti
Brigadier General
6453
Rep
3,009
Posts

Drives: 2008 Saab 9-3 Combi
Join Date: Nov 2014
Location: Toronto, Canada

iTrader: (0)

To be clear I am not hoping for it, far from it as I am affected, but i think it will happen.
Appreciate 0
      04-06-2020, 09:46 AM   #29
SteveinArizona
Brigadier General
United_States
3086
Rep
4,210
Posts

Drives: BMW 530e
Join Date: Jul 2016
Location: Greater Phoenix

iTrader: (0)

Quote:
Originally Posted by premier3is View Post
If people are truly getting 10yr loans at 12% interest for a car... 1. You REALLY can't afford it and 2. You need to take some financial courses ASAP on managing money. 3. Get some help for how stupid you are.
I completely agree if the person in question is buying/leasing a BMW/MB/Audi,Lexus, etc. But if the person is doing that on a basic economy car, that may be all that person can afford and the person may have no other choices.
Appreciate 0
      04-06-2020, 09:58 AM   #30
Burrcold
Brigadier General
5043
Rep
3,866
Posts

Drives: 2024 BMW M3 Comp xDrive
Join Date: Oct 2019
Location: Toronto, Canada

iTrader: (0)

Quote:
Originally Posted by SteveinArizona View Post
I completely agree if the person in question is buying/leasing a BMW/MB/Audi,Lexus, etc. But if the person is doing that on a basic economy car, that may be all that person can afford and the person may have no other choices.
Exactly. My mother-in-law, even though she could afford to buy a very expensive car (she's very frugal) financed a Hyundai Sonata for 9 years at 0% financing! She drives MAYBE 2,500 miles per year so will own this car for probably 15+ years. There are TONS of people out there that do this.

So to your point, even if the interest isn't 0%, many people just need basic transportation and have to extend loan amounts just to not overextend themselves in the immediate term. It's stupid on a luxury car, but lots of people are stupid lol.
__________________
Current: 2024 BMW M3 Competition xDrive | 2022 Audi Q7
Gone: 2022 Audi RS5 | 2020 BMW M340i | 2019 Audi RS5
Appreciate 0
      04-06-2020, 11:37 AM   #31
BzsBimmer
Major General
BzsBimmer's Avatar
3235
Rep
6,707
Posts

Drives: '23 G80 FO M3, M3 & MY Tezzy's
Join Date: Mar 2006
Location: Nor. Cal

iTrader: (32)

Quote:
Originally Posted by Burrcold View Post
Exactly. My mother-in-law, even though she could afford to buy a very expensive car (she's very frugal) financed a Hyundai Sonata for 9 years at 0% financing! She drives MAYBE 2,500 miles per year so will own this car for probably 15+ years. There are TONS of people out there that do this.

So to your point, even if the interest isn't 0%, many people just need basic transportation and have to extend loan amounts just to not overextend themselves in the immediate term. It's stupid on a luxury car, but lots of people are stupid lol.
I can totally see financing a car for that long at 0% interest. That’s basically free money. Why wouldn’t you, and use the savings from a finance rate to invest?

My belief is that when you get into luxury vehicle territory, most people have some financial purpose in leasing, financing etc.. Is it really common for people to purposefully over extend themselves? Maybe a poll needs to happen lol.
Appreciate 0
      04-06-2020, 11:59 AM   #32
Burrcold
Brigadier General
5043
Rep
3,866
Posts

Drives: 2024 BMW M3 Comp xDrive
Join Date: Oct 2019
Location: Toronto, Canada

iTrader: (0)

Quote:
Originally Posted by BzsBimmer View Post
Is it really common for people to purposefully over extend themselves? Maybe a poll needs to happen lol.
A poll won't work because nobody would admit that they are overextending themselves to buy a luxury car (or even know they are since banks/credit unions/etc. are willing to offer long loans so that must mean they can afford it? LOL ...just like mortgages where unemployed people are in some cases approved for half a million or more purchases. We are a society of debt with no regard for rainy day savings unfortunately.
__________________
Current: 2024 BMW M3 Competition xDrive | 2022 Audi Q7
Gone: 2022 Audi RS5 | 2020 BMW M340i | 2019 Audi RS5
Appreciate 1
Humdizzle6024.00
      04-06-2020, 12:01 PM   #33
BzsBimmer
Major General
BzsBimmer's Avatar
3235
Rep
6,707
Posts

Drives: '23 G80 FO M3, M3 & MY Tezzy's
Join Date: Mar 2006
Location: Nor. Cal

iTrader: (32)

True. Rainy day, yes. But this current situation is a flat out typhoon!!
Appreciate 0
      04-06-2020, 12:25 PM   #34
Burrcold
Brigadier General
5043
Rep
3,866
Posts

Drives: 2024 BMW M3 Comp xDrive
Join Date: Oct 2019
Location: Toronto, Canada

iTrader: (0)

Quote:
Originally Posted by BzsBimmer View Post
True. Rainy day, yes. But this current situation is a flat out typhoon!!
Agreed! Crazy times.
__________________
Current: 2024 BMW M3 Competition xDrive | 2022 Audi Q7
Gone: 2022 Audi RS5 | 2020 BMW M340i | 2019 Audi RS5
Appreciate 0
      04-06-2020, 12:38 PM   #35
flybigjet
Remove Before Flight
flybigjet's Avatar
United_States
6616
Rep
1,598
Posts

Drives: M2C & Boeing's light twin
Join Date: Dec 2019
Location: Littleton (Denver), CO

iTrader: (1)

Quote:
Originally Posted by BzsBimmer View Post
True. Rainy day, yes. But this current situation is a flat out typhoon in a hurricane, in an earthquake, in a thunderstorm, in a blizzard in a fire!!!
Fixed it for you.
Appreciate 0
      04-06-2020, 12:40 PM   #36
premier3is
Major
premier3is's Avatar
1627
Rep
1,002
Posts

Drives: 2019 BMW 330i M-Sport
Join Date: Jul 2019
Location: CA

iTrader: (0)

Quote:
Originally Posted by New2Roundel View Post
I find this hard to believe this is happening on any modern luxury car.
You'd be surprised to know how many people live beyond their means.
Appreciate 0
      04-06-2020, 12:58 PM   #37
BzsBimmer
Major General
BzsBimmer's Avatar
3235
Rep
6,707
Posts

Drives: '23 G80 FO M3, M3 & MY Tezzy's
Join Date: Mar 2006
Location: Nor. Cal

iTrader: (32)

Quote:
Originally Posted by flybigjet View Post
Fixed it for you.
Thanks. Interesting you can have a fire with so much moisture lol.
Appreciate 0
      04-06-2020, 02:55 PM   #38
Humdizzle
Brigadier General
6024
Rep
3,610
Posts

Drives: GT3 + M2c
Join Date: Oct 2016
Location: Missouri

iTrader: (0)

yup. most live beyond there means. its insane how much you can finance things. I was just reading the average cc debt is like $8300.

- 30 year mortgage on a house. sure sign here. oh and add another 50% to the cost because that's what you'll pay in interest over the lifetime of the loan.
- bought a house but don't have furniture. sure we can finance that too
- don't have much left in the bank to plop down 60k on an M3? no problem, you don't need to save up, for just 800 a month you can drive off with one today with a lease.
- new iPhone/android ? no need to pay the $1000 right now, just finance it.

people are just short sighted. they live month to month.

I was watching some car youtubers at work today. everyone is just sitting at a desk and talking instead of driving. As much as a get annoyed by Doug Demuro he's a smart man... he had 3 months of car review videos saved up to upload in case of a crisis like this.
__________________

2018 Porsche GT3 6MT
2021 M2C DCT
Previous: Ferrari 458 | R35 GTR | F80 M3 | E46 M3 | E36 M3 | Scion FRS
Appreciate 1
chris7197271.50
      04-06-2020, 03:06 PM   #39
BzsBimmer
Major General
BzsBimmer's Avatar
3235
Rep
6,707
Posts

Drives: '23 G80 FO M3, M3 & MY Tezzy's
Join Date: Mar 2006
Location: Nor. Cal

iTrader: (32)

Yeah having content funnel or funnels in general are wise.

I guess YOLO is the theme of humanity.
Appreciate 0
      04-06-2020, 03:08 PM   #40
chris719
Major General
7272
Rep
7,252
Posts

Drives: '08 M Roadster
Join Date: Oct 2007
Location: NJ

iTrader: (0)

Quote:
Originally Posted by BzsBimmer View Post
My belief is that when you get into luxury vehicle territory, most people have some financial purpose in leasing, financing etc.. Is it really common for people to purposefully over extend themselves? Maybe a poll needs to happen lol.
That's what you would think, because you're a reasonable person. I know a Porsche sales associate in my state and he's told me a lot of scary stories. There are people who make tons of money but spend it even faster. They get addicted to the lifestyle and are constantly balancing on the razor's edge.
Appreciate 0
      04-06-2020, 03:13 PM   #41
BzsBimmer
Major General
BzsBimmer's Avatar
3235
Rep
6,707
Posts

Drives: '23 G80 FO M3, M3 & MY Tezzy's
Join Date: Mar 2006
Location: Nor. Cal

iTrader: (32)

Yeah I can see that. As they say, the more you make, the more you spend.

Sure, a very big generalization but there’s always some truth to these phrases, aren’t there.
Appreciate 0
      04-06-2020, 03:14 PM   #42
Alfisti
Brigadier General
6453
Rep
3,009
Posts

Drives: 2008 Saab 9-3 Combi
Join Date: Nov 2014
Location: Toronto, Canada

iTrader: (0)

Quote:
Originally Posted by chris719 View Post
That's what you would think, because you're a reasonable person. I know a Porsche sales associate in my state and he's told me a lot of scary stories. There are people who make tons of money but spend it even faster. They get addicted to the lifestyle and are constantly balancing on the razor's edge.
The wife is one of them. Our combined incomes are very decent, 10%ers basically. But I am called cheap and stingy because i trip out at the absolutely relentless spending.
Appreciate 1
chris7197271.50
      04-06-2020, 03:14 PM   #43
Humdizzle
Brigadier General
6024
Rep
3,610
Posts

Drives: GT3 + M2c
Join Date: Oct 2016
Location: Missouri

iTrader: (0)

Quote:
Originally Posted by premier3is View Post
If people are truly getting 10yr loans at 12% interest for a car... 1. You REALLY can't afford it and 2. You need to take some financial courses ASAP on managing money. 3. Get some help for how stupid you are.
https://www.evanpaulmotorcars.com/car/505-mclaren-570s

McLaren 570s.
Probably 160k asking price. and 20k down

$140,000 to be financed.
144 month loan at 6.25% ~ 1380 a month.

That's $60k in just interest for a $160k car
__________________

2018 Porsche GT3 6MT
2021 M2C DCT
Previous: Ferrari 458 | R35 GTR | F80 M3 | E46 M3 | E36 M3 | Scion FRS
Appreciate 1
chris7197271.50
      04-07-2020, 09:56 AM   #44
DarkstarZero
Lieutenant Colonel
DarkstarZero's Avatar
United_States
1014
Rep
1,719
Posts

Drives: Daytona 95 M3, X7 M50, e92 M3,
Join Date: Nov 2007
Location: Washington DC

iTrader: (6)

Quote:
Originally Posted by Humdizzle View Post
https://www.evanpaulmotorcars.com/car/505-mclaren-570s

McLaren 570s.
Probably 160k asking price. and 20k down

$140,000 to be financed.
144 month loan at 6.25% ~ 1380 a month.

That's $60k in just interest for a $160k car
A 12 year loan straight from the dealer!?

We're in a recession. Right now all the lost jobs are in travel and service but they will come back once C19 is over. The jobs that will have a more long-term loss are in Sales. Sales is always the main thing to go in a recession.

I'm guessing a ton of cars like this McLaren will be at auction in 2 months. No payment deferral is going to make up for lost commissions over the next year.
__________________
BMW CCA Track Instructor
Join to win a M School Day at the Performance Center!
Enter Referral ID: 420186
Appreciate 0
Post Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



All times are GMT -5. The time now is 06:13 AM.




xbimmers
Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2024, vBulletin Solutions Inc.
1Addicts.com, BIMMERPOST.com, E90Post.com, F30Post.com, M3Post.com, ZPost.com, 5Post.com, 6Post.com, 7Post.com, XBimmers.com logo and trademark are properties of BIMMERPOST