Nothing learned from the last crash

[benjamen]

http://finance.yahoo.com/news/car-b...RhaWQDBHBzdGNhdANob21lBHB0A3NlY3Rpb25z;_ylv=3

"...the average new car loan in the fourth quarter of last year was $26,691 and stretched out over an average of 65 months."

"The average transaction price for new models now tops $30,000.."

"In the fourth quarter, there was a 30.9 percent increase in the number of new vehicles sold to those with deep subprime credit scores under 550. Loans to those with subprime credit scores between 550 and 619 jumped 11.5percent."

"...43.2 percent of new car loans in the fourth quarter were written for those with subprime credit scores, according to Experian. That is the highest percentage of new car loans going to subprime buyers since late 2007."

 

[bushi]

...well, the "Catch 22" here is, they cannot get the economy "going", without lowering the lending standards (because of that thing, you know, that Americans, on average, are BROKE), but they cannot lower the lending standards, without endangering the banks.

Wash, rinse, repeat... BTFD!

 

[mmerlinn]

Every generation must relearn everything the hard way. No one ever learns from history because even if one knows history he does not believe history matters.

So, as long as humans exist, history will continue to repeat every generation.

 

[ADK]

I've never bought a *new* car... always used cars.

My next used car is going to be a straight cash deal from a person-to-person transaction. No more loans, no more dealers.

I don't care if it's a $3k POS... I'll drive it into the ground and invest my savings

We were just talking about the cost of cars, etc., at work the other day. Exact same basis for discussion.

ADK

 

[bushi]

hey, I bet for $3k you can get something absolutely fine, if you do your homework, and educate yourself about cars prior .

I was able, for the last good few years, manage to buy cars in that price region, that were absolutely FLAWLESS, and dream to drive. Example - my last ride - Subaru Legacy GT-B. Cost: €3600. Age:10 years Mileage: roughly 60k. General state & shape: SPOTLESS, not a scratch on it, technically - as good as new (at least, indistinguishable).

You just need a thorough inspection, and if it has a low mileage, and the general state of the car confirms that mileage, and if it is one of the models with a good reputation for longevity/reliability - $3k is surely enough to get a very decent car indeed.

The only drawback is, you will only get a "head turn" factor, from the proper petrol heads, and Joneses, might not appreciate your skills, taste and sophistication of the transaction. Which I could not care less about

 

[swissaustrian]

It's not just suprime car loans that are distorting car "sales" numbers, it's also channel stuffing

http://www.zerohedge.com/news/2012-...-finally-reports-gms-channel-stuffing-scandal

 

[ancona]

New cars are a sucker buy. I will NEVER buy a brand new car. Anyone can go to nearly any dealer and ask to see the inventory of cars coming off lease, check them out and choose one with 10 or 12 thousand miles. These cars often sell with a thirty to thirty five percent discount as compared with the same new car.

 

[Jay]

New cars are a sucker buy. I will NEVER buy a brand new car. Anyone can go to nearly any dealer and ask to see the inventory of cars coming off lease, check them out and choose one with 10 or 12 thousand miles. These cars often sell with a thirty to thirty five percent discount as compared with the same new car.

I have five running vehicles. Noone needs five cars (trucks) but I don't want to sell one, they are all paid for.

 

[mmerlinn]

hey, I bet for $3k you can get something absolutely fine, if you do your homework, and educate yourself about cars prior .

If you know what you want and know where the good buys are, finding a decent car under $3,000 is super easy.

I found my current one-owner van (93 Aerostar 3.0L automatic) for $2000 seven years ago with 176,000 miles on it. Today is has 371,000 miles with NO MAJOR WORK, just consumables, although it is now getting tired since I have overworked it to death.

I am actively looking for another 93-94 Aerostar 3.0L automatic van with about 150,000 miles. I expect to find one in really good shape for about $1000. I missed a running 91 Aerostar for a measly $100 in very good shape two months ago by less than an hour. Not exactly what I was looking for, but for the price it was impossible to go wrong since curb scrap value here is $500 for any Aerostar in any condition.

When I find one, it will be my third Aerostar. No point in wasting good money on a new van that probably won't come close to the workhorse quality of the Aerostar, especially since I get 23 city and 26 highway even fully OVERloaded (springs bottomed out).