How Will The Financial Meltdown Affect Your Next Car Loan?

I was thinking of get the new 335i or an S4, but now im getting a Civic si or mini s type.

i dont do "car loans" unless the car is in the 100g range.

how unfortunate 528i lol

Get a Cooper S at least. Don't punish yourself that bad by getting a Civic. The third gear in the SI still grinds by the way.

Get a used car. I personally think new cars are for suckers. You can get the same warranty on a used car nowadays that's equivalent to buying the extended warranty on a new car, and it's really no added expense if you talk the price of the car down; good luck trying to talk the extended warranty on a new car down, let alone the price of the new car.

You can get good finance rates on used vehicles.

Golf GTI, you will be far happier than Mini or Civic.

For once, I agree with Bmw8ter. Just because I can afford a new car, doesn't mean I buy them. I dont care to spend 30%-40% more for that new car smell.

Now, I do buy my diesels new because of their fragility in the break in period.

I've learned my lesson on new car depreciation. However, leasing is a great alternative if the deal is right.

Sometimes a used car is a bad deal. Cars with high residuals sell for way to close to what the new car does. A 2006 Lexus IS350 w/ 30k will cost you around 33k when a new one can be had for under 40k, if you keep the options under control.

Personally I RARELY buy a new car for myself for daily transport. The depreciation is too great on luxury brands.

The wife wants a new one every two years, so in that case that car is always leased.

It all depends on your situation.

Well I see a lot of people getting priced out of their comfort zones by increased interest rates.

This will keep some people from buying an G37 for example and push them into a Maxima instead.

Right now only 10 to 20% of the people fall into tier 1 credit (720+) so this affects a lot of people out there.

interest rate would never affet my buying decision since i typically pay off the car within few weeks.

having said that, some cars are better to lease than to buy. i.e. the one that doesn't hold its vaule very well (don't just look at % it dorpped, look at acutal dollar amount it drops), or be a pain in the ass when maintaining. I am talking to you, BMW.

Never had a car loan, or leased, I buy all my cars with cash.

That's a financial mistake. I get at least 8% return on my savings so with a car loan I actually make more money than if I would pay cash. Considering the amount of cars that have great financing rates today buying cash is a big, big mistake.

Wow I actually agree with star... Lease the car at a low to non-existent rate and just have it completely paid off by the end of your lease. residual and lease amount

Star;
You're getting an after tax 8% return?????
I'm impressed. What are you invested in to get that kind of return?

A more realistic example to Star's philosphy would be a Tax-Free Muni Bond paying 3% and a car loan at 0.9%.

now this is interesting: audinewengland and i share the same philosophy but i get deboosted 10 times more? i guess i said it too bluntly? lol

Same crap people said about the internet making books, newspapers and magazines obsolete in the 1990s. Hasn't happened and isn't going to -- and neither will internal combustion engines be made obsolete by alternatives.

When an electric car motor can captivate me in the same way the straight-six of my 325i does, then I'll go electric. Until then -- nahhh.

No way. The non-enthusiasts may start buying electric, etc. That will just take the pressure off of oil so price and supply will level out. Then those that want combustion engines can still have them.

Look like I want be in the "buying" market anytime soon. I'll just keep renting my company cars from hertz: Nissan Z, Audi A6, A4, Q7, infiniti G35, M35, FX, Lexus RX....etc....

I wouldn't take out a loan if I'm going to buy a car in general...unless by some divine power it cannot depreciate in value

It sounds like all of you are fairly rich. I am not and will probably always have to get a car loan. However if it continues to remain difficult to get a loan or an affordable loan the auto industry as a whole will simply tank. At that point it won't matter if all of you can afford to pay cash.

for those who are leasing the best thing to do right now is to stick with your brand or bank. even if your credit has fallen, as long as your current car is paid off, and you getting another car through the same bank you will always get approved. most cases it will be tier 1 unless the car is greater in value.

example: i had a customer coming out of an infiniti. their credit fell due to personal circumstances. the bank agreed to give him a new car lease as long as the old car was returned.

i see deals like this all day and encourage people to stick with their banks.

also lease rates are on the rise and don't seem to be falling.

before i had people with 600 credit get approved for top tier in almost any bank.

personally i lease 1 car and own 1 car in the family to have a balance.

well, it you have shitty credit you won't get one. or you'll pay an obscene rate.

if you have great credit, don't worry about it. interest rates remain at historic lows.

Wow! It seems like alot of you are buying your luxury cars in cash. Would any of you like a copy of my Resume'?

I just want an XF or GS . . .Thats all.

This is what I see personally from a sales perspective. Over the last 6-7 months I've had less and less customers come in and try to stretch on a lease for a new car they really can't afford. This is partly due to their personal finances but also the banks have tightened up their lending qualifications. This is bad for me because I make less money but it's good for the overall economy. Rampant, loose, and greedy lending AND borrowing creates overgrowth and collapse...does the number $700,000,000,000 ring a bell????

What New Car? Most people have to drive what they have now until 2014!