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> 8 or 10 year loan. Then you roll that remainder into the next loan when you get another car. What does this mean? Surely lenders are not lending more than t
by lotsofpulp 1y ago
> 8 or 10 year loan. Then you roll that remainder into the next loan when you get another car.
What does this mean? Surely lenders are not lending more than the price of the new car with just the new car as the collateral.
- ponector 1y agoThat is exactly what they are doing. It's common to have negative equity in car, just roll to the next auto loan.
- lotsofpulp 1y agoSuppose you are buying a new car for $30k, and you owe $10k on a car that would sell for $5k. A dealership would take the car worth $5k and lend you $35k?
- ponector 1y agoExactly! And with high interest rate, like 15% for 8y. 3 years later you can roll over debt into the next new car.