So I was talking to a friend of mine this morning who lives in the US and she told me that the car dealers are advertising a 97 months financing. 97 months , I mean can you imagine paying for the car for 8 years. So basically by the time you finish paying for the car its time to get another one and the cycle goes around again.
In my view here is what is going on. The financial companies are getting short on innovative ways to screw people over and the car dealers need to keep pushing plastic cars out the doors. SO hey why not finance someone for the next 8 years. We just say that its 97 months, and show them that on a 30,000 car the monthly payments is ONLY 309.00 not including taxes and interest (which they put n small print). Or I like the innovative way of saying “BI WEEKLY”. You get your pay cheque every two weeks and we only take a little off of it so you don’t feel it. No worries we do the work for you.
So here is the reasoning that they are giving the working people. The prices of cars have increased but the salaries have not increased. In 1990 the average price of a car was $16,950 in 2008 the average price of the car was $27,958.00 That’s an increase of $11,008 Over 18 years or $611 per year.
The best line I heard is ZERO PERCENT FINANCING. what a load of crap. Ill show you how they calculate that part at a later date.
We (the financial companies) raised the prices, we raised the cost of borrowing, we kept your wages the same, AND we are doing you a favor by financing a car you shouldn’t buy over 97 months. Is everyone NUTS? I must be the nuts person for adding it up and calculating it.
As well has anyone thought about the maintenance cost of the car after the “warranty” expires? It’s a CAR that after 5 years will start falling apart so what value will it be over the 8 years period.
You know as soon as you walk in that they start with $300 per month but by the time you are done its $400 per month and the sales person say “its only $100 per month”. When someone tells me that I say good why don’t you pay for the extra 100.
If you can pay 400 per month pay only 300 and put the 100 towards bad time funds.
When you get a flat tire. Better yet take your kids or your spouse out to movies and spend the 100 on your enjoyment with your family. You know the excitement of the new car will disappear in a few months or until the new model comes out. The only thing that will not go away is the debt you just signed on for that car.
If you can’t afford it don’t buy it. Sit down and do the math buy a cheaper used car so you can actually pay for it. It will make you feel better about buying something less than the advertised “affordability” price. The car will only make you happy for a short time. It’s Just a car.
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