Oh lordy. When I was on active duty I saw a TON of really, REALLY bad loans. People joking about young Airmen/Soldiers/Marines/Sailors getting that V6 Mustang at 29% interest aren’t actually joking…sadly. I’ve also seen a guy buy an 8 year old MX6 at over 30% interest, total insanity. But, the worst I’ve ever heard of…..I was talking to a salesman at a Chevy dealer, we were looking at SUVs like the Traverse, and I asked him how on Earth so many stay at home soccer moms were driving in brand new, fully loaded Tahoes/Yukons/Suburbans.
He told me they were financing them for over 8 years, and usually their interest rates hovered around 10%. Think about that: financing a vehicle for more than 5 years longer than the warranty lasts, and getting absolutely thrashed by your interest rate. He said it was worse than that though, because in a couple years when GM inevitably refreshes the exterior, most of them come scrambling back to get that new one. And they’re all completely upside-down. So they wind up with longer loans, at higher interest. And the cycle repeats every few years. He had one customer who had to take a 120 month loan to get her new Suburban. TEN YEARS! People are nuts, and keeping up with the Joneses is stupid.
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