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Most Americans can absolutely afford a $30k car. Certainly not all at once, but definitely on a standard 60 month loan. Do not mistake the word "most" for "all
by latency-guy2 3y ago
Most Americans can absolutely afford a $30k car. Certainly not all at once, but definitely on a standard 60 month loan.
Do not mistake the word "most" for "all", unless you want to muddy the waters.
- kemiller 3y agoNot disagreeing but the phrase “standard 60 month loan” makes me cringe. 20 years ago more than 36 would have raised eyebrows.
- keep_reading 3y ago72 is the new standard or so I'm told, and I've seen 84 listed as an option.
- majormajor 3y agoI don't think 4+ year loans were as uncommon in 2003 as you do. 1993 or 1983 maybe... 7-year loans, now... that's new. But cars also last longer as well as costing more so... eh. I don't know what to make of it.
- andrewmcwatters 3y agoPst, they can only afford it because of the 60 month loan, where you pay an astronomical amount in interest on top of the sticker price. So no, they cannot. "Most" Americans are paying for a car based on what monthly payment they can afford, and never thinking about how much they actually owe.
- latency-guy2 3y agoAstronomical in the APR sense would be roughly +20%-40% over the lifetime of the loan in this scenario, meaning $36k - $42k. Over 5 years. So yes. Most Americans can afford this. Easily.
- jjav 3y ago> standard 60 month loan That's.... crazy! Car loans should be no more than 3 years. But really, to be responsible, only ever buy a car with cash on hand. If you need a loan, find a cheaper car until you don't need a loan. Once I bought a car with a loan but only because the manufacturer had a 0% interest offer.