Cars are so expensive that buyers need seven-year loans

[randerson]

My experience is that the base price for a car hasn't increased as much as all the mandatory dealer add-ons they force on you. I'm currently trying to buy a new car and the dealer refuses to sell me one without a Pulse brake light, paint protection, ceramic glaze, wheel & tire protection, floor mats, and prepaid maintenance, and I must trade in my current vehicle. Other dealers in the area all do the same thing. I walked out the door and they never called me back so I suppose this strategy works for them. Dealers have gone from adding zero value to adding negative value, and thanks to their lobbying it is impossible to buy a car without them.

[tschwimmer]

Car dealers are a scourge on Americans and a hidden tax imposed via poor legislation. They employ thousands and are generally very wealthy so regrettably they have become an embedded political entity.

I don't know what the answer to them is other than to remove the anti-DTC laws but that seems unlikely.

[mikestew]

Even TFA points out that this is nothing new, as I was thinking "we bought a new car 20 years ago, and 84 month loans were an option". It was an option that few took, but it was there. Now, apparently, 21% of new car loans are 84 months.

While we're on the subject, here's one for you: if you buy an RV, you can get a 20 year loan. We technically have one at the moment (it'll be paid off after having held the loan for a few months). You think cars depreciate fast? Go buy an RV. I can't imagine carrying a 20 year loan on something that will be nearly impossible to sell before the loan is paid off.

[evilduck]

Isn't the 20 year RV loan for folks who make them their permanent residence? I think they would view it analogous to paying rent for an apartment instead of paying on a depreciating asset.

[justinator]

20 year loan on something that depreciates that terrible is predatory.

[chung8123]

Do RVs have a deprecation cliff since you cannot take old RVs to many campsites?

[gentooflux]

Marine loans for boats also appear to carry 10-20 year terms. Value being subjective and all, if you find the juice tasty enough then it must be worth the squeeze.

Car loans have a bit more of an inherent predatory bent since most Americans need a car to get by. That's not to say we all need a car which costs so much that an 84 month term becomes worth considering...

[madcaptenor]

Cars last longer now, so this may not be as bad as it sounds. The real issue is whether people are ending up underwater on their vehicles - that is, are loan lengths increasing faster than depreciation curves are flattening.

[4MOAisgoodenuf]

Do they really? I've seen plenty of surveys that say American consumers are _keeping_ their passenger cars for longer and longer periods (12.8 years in 2025 https://www.spglobal.com/automotive-insights/en/blogs/2025/0...)

But is there any study that says the components or designs are needing less repairs or are getting cheaper to maintain over that 12.8 year period as opposed to, say, an econobox sedan from 2005?

Is a modern family car with GDI, CVT, plastic oil pan, infotainment system, and litany of safety sensors going to last as long without bankrupting its owner as an equivalent product from a comparable market segment 20 years ago?

[MrResearcher]

The powertrain warranty is usually 5 years or 60K miles. Bumper-to-bumper warranty is around 3 years, I think. I would be OK with the loan for as long as powertrain is covered, at the very least. The modern day turbo engines have exceptionally low reliability, it will blow while you still owe quite a bit for the car.

[betaby]

> Cars last longer now

Honda from 2005 could last 10 years in Quebec and Honda from 2015 could last 10 years. I don't have huge stats, but it seems that cars are about as reliable today as they were 20 years ago. I didn't notice them to be more reliable.

[taylodl]

The real news is Harley Davidson motorcycles are so expensive people are getting 8 year loans at over 10% APR - and that's with good credit! Prices today are insane!

[4MOAisgoodenuf]

Given the current state of many car companies (Nissan, Stellantis, Mitsubishi) a 7-year loan may be a bit over-optimistic about the future of the car and the manufacturer

[Figs]

Meanwhile, China is making EVs in the $5~$10K (USD) range like Lingbox, BAIC’s Arcfox, etc...

[nicbou]

In 2020 I bought a "disposable" Renault Kangoo to schlepp things around and go on road trips. It broke beyond repair last week and I started looking for a replacement.

Even a 3 year old Dacia Dokker - basically the same exact car with newer trim - is pushing €15k. A new Kangoo is around €30k. That's a lot for an economy car that does nothing significantly better than the 2007 version.

Since I only drive 1-3 times per month, I decided to stop owning a car. The cost of ownership is just way too high.

[JojoFatsani]

A lot of people have too much car for their needs. Big Child Car Seat is definitely driving some of the growth of vehicles, as is quite reasonably priced gas, but I feel most people could go smaller/used and afford what they actually NEED vs WANT.

[subscribed]

From my friend's search "three child car seats in the back" were rather exhausting experience.

[htrp]

96 and 120 are the next places, where you can roll your loan balance as part of your trade-in

[otterley]

One important reason is that the US is imposing significant tariffs (25%) on Chinese-made automobiles. You can buy a very nice car just south of the border in Mexico starting at MXN$300,000 ($20,000 USD).

[toomuchtodo]

https://archive.today/zZXZq

[j45]

So expensive.. or so profitable that the payments need to be lowered to look palatable over 7+ years.

[2OEH8eoCRo0]

TIL the average consumer makes horrendous financial decisions. God forbid you buy used!

[chung8123]

I wonder if we shift to a more ebike infrastructure in the future.

[Tostino]

Sadly, that would reduce GDP by lowering spending. Can't happen.

I'm slightly joking, but only slightly.

I've built my own ebikes since I was a teen in the 2000s. I love them, and wish more people would use them to get around day to day. There has been such a lackluster or hostile adoption by "the powers that be" of them, I just can't see it actually making a difference in American transportation though.

At least we aren't the UK though. They have been so hostile to ebikes and escooters for a couple decades now I couldn't imagine bothering if I lived there.

[hnpolicestate]

You will own nothing and be happy basically.

[ericmcer]

Eh cars are one of the few areas that haven't been crushed by inflation unless you buy some stupid giant SUV. Honda civic costs less than it did in the 90s/00s (adjusted for inflation). Tons of affordable sedans out there, people just like getting giant $50k+ cars, I have no clue why.

[dumbledoren]

Hard to understand why people are downvoting the parent. That may be a right wing dogwhistle, but also the entire corporate industry seems to be trying real hard to turn life on planet earth into a subscription.

[carlosjobim]

Motorcycles are a great option for those who live in suitable climate and don't have to text and play Candy Crush while they're driving. You can complement with a cheap car for when you need four wheels, instead of going into years of debt for a decent vehicle.

[ChiefNotAClue]

Motorcycles only seem cheap. Factor in a proper set of gear, like helmet, jacket, pants, and gloves, and you're up another $1k. Also note that maintenance intervals are more frequent. Consumables, such as tires, will be more expensive in the long run.

Why choose that over a used car for $5k? It's not cheaper, nor is it more practical. But I'll agree, on the nice days, it's definitely more enjoyable.

[hoosier2gator]

I don't trust other drivers enough to be riding a motorcycle..

[sidewndr46]

Right because if you can't afford one cheap vehicle you can clearly afford two of them.