• Jamie@jamie.moe
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      1 year ago

      Also the average length of car ownership before buying something else is about 5 years, but the average loan duration for a new car is 7 years.

      The car market in the US is just screwed.

      • afraid_of_zombies@lemmy.world
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        1 year ago

        My Honda Civic was built in 2008 and it’s fine. My car before that was a Nissan Sentra and it lived 22 years. Drive them until they are piles of rust kept going by duct tape and raw anger, and try not to shed manly tears when they are crushed into a cube.

        I am sorry car, but this is a good death.

          • TheSanSabaSongbird@lemdro.id
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            1 year ago

            Only the lower end “economy” Hondas are super reliable. Honda’s higher-end models tend to use newer and less well-vetted engineering while the basic models all rely on older tried and true technology. I learned this the hard way with my 2006 Accord V6 which was a blast to drive, but like yours only lasted about 10 years before it started having serious and very expensive problems.

      • applejacks@lemmy.world
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        1 year ago

        that’s insane, I have a 2005 toyota corolla with zero interest in getting a new car.

      • icedterminal@lemmy.world
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        1 year ago

        Those that do loans are much more likely to have negativity equity when trading in. Which is already proven with those who have terms longer than 4 years. This means on trading in, the borrower is looking at an increased car payment on top of the already higher average transaction price of $35,000. If you put money down, default on the loan and lose the car, you’ve quite literally given away money.

        It’s true the average loan is 7 years, but within the last few years there are 10 year (!) loans are available. This helps bring down an $800 payment. But that interest is gonna suck if you don’t get a very low rate.

        Those that pay off their loans tend to keep their cars for 10 to 12 years. Assuming the car doesn’t catastrophically fail. Which anecdotally happened to our family. 1.6L Ford EcoBoost defect killed the engine 2 years after a 4 year loan was paid off.

        • Jamie@jamie.moe
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          1 year ago

          Speaking anecdotally here, I wonder if the banks are trying to push those super long loans, too. I bought my car last year, have excellent credit, and put 50% down. The only loan I was offered was an 8 year loan when I wanted 4. Out of sheer spite, I took advantage of the early payoff and paid it off as early as possible to deprive them of as much interest as possible, and it was much faster than the 4 years I asked for.

          • Cosmic Cleric@lemmy.world
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            1 year ago

            Out of sheer spite, I took advantage of the early payoff and paid it off as early as possible to deprive them of as much interest as possible

            As a general FYI for anyone who reads this comment, be aware that bank loans front load the payment of the interest, and the payment of the principal is done on the back end.

            So you have to pay off a loan very quickly to avoid the majority of the interest you would pay for that loan.

            Finally, if you pay extra to try to finish a loan off early, make sure any extra amount you pay is marked as “principal only”. Banks are supposed to always apply any extra to the principal, but a lot of times they apply the extra to the interest, unless you explicitly tell them not to.

            • Jamie@jamie.moe
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              1 year ago

              In this case, I had a deal that had no penalties for early payoff, so in my case, paying off my car in 1/8 the time saved me 7 years of interest with no serious downside. Unless you count credit scores being BS and paying off loans early technically not being ideal credit management.

              • Cosmic Cleric@lemmy.world
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                1 year ago

                Fair enough, but I wasn’t actually talking about early payoff penalty. I was speaking to the payback schedule that the loan company has you reimburse them with.

                You pay your loan back on a monthly basis. In the earlier years, each monthly payment goes (for example) 80% to interest owed, and 20% owed to principal. Usually around the last fiveish years mark, your payment is applied 10% interest, 90% principal. The bank/loan giver makes sure they get their profit from offering you the loan in the earlier years. In other words, each monthly payment by you is NOT going 50%/50% interest/principal.

                Don’t get me wrong though, its ALWAYS good to pay off your loan early, from a total $ amount paid when you are done point of view. But if you take ten years to pay off a fifteen year loan, you’ve paid off most of the interest owed already, where if you pay off a fifteen year loan in five years you’ve paid less interest owed, % wise.

                (The time frames I mention above is estimates for sake of this discussion, YMMV for your actual load, but the principal of what’s being said is valid.)

        • eskimofry@lemmy.world
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          1 year ago

          Then those data points will have 0 for their loan years and it should bring dowm your average years.

          • ironeagl@sh.itjust.works
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            1 year ago

            The opposite is also possible: those bought with loans are probably bought new, and would be expected to be held onto for longer. Older cars are cheaper and are probably bought more with cash. They probably also kick the bucket / are re-sold more quickly.

      • gian @lemmy.grys.it
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        1 year ago

        Not really. Even in EU the cars are getting bigger even if not as fast as in the US.
        Some year ago the small city cars were smaller than the today version.

        • afraid_of_zombies@lemmy.world
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          1 year ago

          Change the laws. If it is a truck you should have to get a CDL, have to go to weight stations, cant drive on the parkway etc. If it is a car it should have to follow the emission rules cars have. There is no point in having standards if we make exceptions so big you can drive a cough…sports utility vehicle…cough through.

          Edit: of course we can pretty much end the pickup market tomorrow if we provide free therapy for men with a micropenis.

            • afraid_of_zombies@lemmy.world
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              1 year ago

              Fine whatever. I will start leaving notes in the bed of gas guzzling pickups that say “sorry about the micropenis you feel you need to compensate for”

              • applejacks@lemmy.world
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                1 year ago

                that would be a great way to undermine your entire cause.

                some people just prefer larger cars, and pivoting to some bizarre comment about their genitalia is an incredibly stupid way to go about dealing with the issue.

                • Cosmic Cleric@lemmy.world
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                  1 year ago

                  and pivoting to some bizarre comment about their genitalia is an incredibly stupid way to go about dealing with the issue.

                  I was just about to say the same thing to the person you were replying to.

                  Immature responses doesn’t convince anyone of anything.

                  • Cosmic Cleric@lemmy.world
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                    1 year ago

                    Oh woah is me. The small dick energy crowd won’t be on my side. Oh woah is me woah is me.

                    I’m now hearing your comment in a ‘Bill and Ted’ type voice.

                    On a serious note, if you want to win people over to your cause, try not to insult them, but instead convince them.

          • random65837@lemmy.world
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            1 year ago

            If it is a truck you should have to get a CDL, have to go to weight stations, cant drive on the parkway etc.

            Literally the stupidest thing I’ve ever heard. You clearly don’t know what a CDL is, don’t understand the function of weigh stations, and for that, actual trucks that require them have had emission systems for a long time now.

              • random65837@lemmy.world
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                1 year ago

                2 secs with Google would show you it’s a Commercial Driver’s License. Used for Commercial Vehicles which have a gross weight of over 26k lbs, or required to tow a trailer over 10k lbs GVR. But I’m sure you already knew that. Weight stations are for weighing vehicles that qualify as CMV’s and / or that are subject to the FMCSR’s, hence the 3 little red lights in the back of them, but again, you knew that.

                For those that (actually) didn’t know, there ya go.

                • Cosmic Cleric@lemmy.world
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                  1 year ago

                  2 secs with Google would show you it’s a Commercial Driver’s License.

                  I’n never sure though that the initials a person is using is for the same thing that comes up as the first item on a Google search, so I like to ask the person instead.

                  But I’m sure you already knew that.

                  I wouldn’t have bothered asking if I did.

                  but again, you knew that.

                  Not sure how I pissed you off, but I really didn’t know.

                  For those that (actually) didn’t know, there ya go.

                  As someone who didn’t know, thank you.

                  You must be lots of fun at parties.

                  • random65837@lemmy.world
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                    1 year ago

                    Sorry dude, moving quick and didn’t realize you weren’t the original guy that said that stupid shit. Eternity is a terrible app. I have no issues explaining shit to people who actually didn’t know. Yes, I’m awesome at parties, especially when drunk.

    • Cosmic Cleric@lemmy.world
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      1 year ago

      also interesting is how few car makers even produce normal sized cars anymore, let alone smaller ones.

      From the article…

      SUVs and crossovers were traditionally less fuel efficient and more expensive, but that’s not the case anymore. Engine and technology advancements have leveled those drawbacks. SUVs and crossovers are now just as fuel efficient and offer more hauling capability as similar-sized cars for about the same price in many cases,”

      So, who do I believe?

      • FeelThePoveR@lemmy.world
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        1 year ago

        “Engine and technology advancements” can also be applied to smaller cars so that doesn’t really move the needle anywhere.

        I think it’s quite obvious that unless you discover how to break the laws of physics, the smaller car will be always more efficient due to better aerodynamics and lower weight.

        • Cosmic Cleric@lemmy.world
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          1 year ago

          the smaller car will be always more efficient due to better aerodynamics and lower weight.

          Be interesting to know how much different the two were, if the difference was minimal, or very large.

          If it’s minimal, and you need the carrying capacity, then it wouldn’t be such a bad thing to own a SUV.

          If it’s not minimal, yeah then it’s better just renting an SUV size vehicle when you need to carry something of large capacity. Unless you need that capacity each and every day, then it would be cost prohibitive to rent versus own.

      • random65837@lemmy.world
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        1 year ago

        There’s nothing to not believe, look up the fuel averages. My wife’s Escape averages 40mpg.