[Shivetya]

Being in the middle of a new car purchase this week really has shed the light on how bad some loans are. Just from overhearing deals to asking the sales person if what I heard was true was enlightening.

While I did not hear anyone in that APR range one couple was working towards a 14.90 rate six year loan. Another was trying to roll over money owed on a new car but kept getting told no one would make that loan as the new exceeded the value of the new car by too much. Yet my salesperson told me they have customers they turned down and drive a new car to their dealership as if to brag they got it elsewhere.

short story, too many people are just irrational about their purchases and have very bad reasoning. thinking a thousand extra interest is okay over a long term 84 vs 60 usually by factoring the extra across the whole period instead of the extra 24 which is more telling. Let alone taking 84 month loans!

[Clubber]

I think those people think in terms of how much they can fit into their monthly income rather than how much the financing is going to cost them. In other words, if the person make $2000 a month and has $800 left over every month, a $500 car payment is ok and the 14% rate doesn't even enter into the calculation.