Finance vs paying cash?

They would have to be. It just amazes me when I think about it because I look at it differently. My priority was get a house, then worry about the toys and cars.

 

Doesn't matter. Debt to income ratio should of stopped them in their tracks. Not sure how they pulled that off, unless they had outside help. Family or something. Inheritance.

 

Trust me, they never had outside help.

 

How can they make the payments?

 

New car purchases are a slightly different animal, because of the volume out of a dealer you have in house financing that is willing to take a bigger risk, in a situation like that the lender is more worried about payment history than debt to income ratio, I know it doesn't make sense, but that is what is happening in those situations, plus they are probably paying 15-20 percent interest.

 

But here pay here. They'll get ya every time. We have em all over here in Orlando. Even one of em will take $500-$800 down.

 

Ya its crazy nowadays. I've seen 96 month car/bike financing around. Usually on higher end cars and bikes. They convince them the vehicle's higher residual value makes it work.

 

I was talking to a salesman at the GM dealer while I was having the TPS replaced on my truck last month. He told me the Chrysler dealer next door was offering that 96 month financing. We crunched some numbers and found that by around year 3-4 the amount owing is more than the depreciated value of the vehicle. Kids today just look at it as a set monthly payment.

 

They're so far in debt at this point I'm thinking they've got these vehicles financed over 7 or 8 years.

 

Some don't even read what they sign. I always go for the longest term, but pay it off about half way through. But you have to watch the kind of loan they offer some loans penalties for paying off before maturity.