About 2.2% to 3.7% p.a., depend on bank. More often than not people will take the 7 years, but nowadays car is getting more and more pricier and people also trying to project their standard of living more, so 9 years is getting more and more common. 5 years is always rare.
Last time I considered buying a new car (in 2019), it turned out that the payment amount if financed over a reasonable number of years was going to be damn close to what I pay for my mortgage! That’s partially because my house was cheap when I bought it (not so much, now), but it’s also because new cars are ridiculously expensive these days, above and beyond normal inflation.
(I didn’t go through with the purchase for other reasons, BTW. Namely, that Toyota was unable to find me a truck with a manual transmission and the other options I wanted, down to the color. If I’m buying a new car it should be exactly what I want, damn it!)
I saw a commercial for a car lot advertising that they do seven year financing. Like that’s helpful.
7 and 9 years are very common in my country.
What are the interest rates like?
About 2.2% to 3.7% p.a., depend on bank. More often than not people will take the 7 years, but nowadays car is getting more and more pricier and people also trying to project their standard of living more, so 9 years is getting more and more common. 5 years is always rare.
I’ll have to wait for the commercial to reappear, but I think they were over 6% APR here.
Wow, that’s really high
Last time I considered buying a new car (in 2019), it turned out that the payment amount if financed over a reasonable number of years was going to be damn close to what I pay for my mortgage! That’s partially because my house was cheap when I bought it (not so much, now), but it’s also because new cars are ridiculously expensive these days, above and beyond normal inflation.
(I didn’t go through with the purchase for other reasons, BTW. Namely, that Toyota was unable to find me a truck with a manual transmission and the other options I wanted, down to the color. If I’m buying a new car it should be exactly what I want, damn it!)