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I don't agree that consumers are strictly limited by price. It's been the norm to finance vehicles with loans for a while now. So much that dealerships make mor
by sidewndr46 4y ago
I don't agree that consumers are strictly limited by price. It's been the norm to finance vehicles with loans for a while now. So much that dealerships make more on financing than they do on selling cars in some cases.
As profit in the industry has grown, so too has the amount of available credit. We now see 7 year loans on vehicles becoming more common.
- gruez 4y ago>I don't agree that consumers are strictly limited by price. It's been the norm to finance vehicles with loans for a while now. The monthly payments are dictated by the purchase price and interest rate. Guess who controls the interest rates?
- sidewndr46 4y agoI don't actually know who sets the industry standards for automobile financing. But the point you're making is missing something: term of the loan. That's the easy way to get the monthly cost down.
- samatman 4y agoThe price of anything expensive includes the cost to obtain enough money to buy it. When I said "price" that recognizes the fact that cars are financed. It's like the price of a home that way, you're not disagreeing with anything, you just didn't know what that word meant in this context, for some odd reason.
- sidewndr46 4y agoYeah, the fact here is obviously I can't English. Not that you ignore the reality that consumers consider a car purchase a "$X per month" and not as an actual cost. Every consumer is perfectly educated and diligently computes the total cost of ownership of every purchase.