Why are people so concerned about interest rates when financing a car?

>friend's gf buys a new 2016 base model ford focus
>roll up windows and steel wheels, just a very low end vehicle
>16,000 at 28% interest rate, 72 month loan
>455 a month, will end up paying 37,000 dollars on a car that will be worth 10,000 dollars in a year
>she better be smart enough to re-finance

Oh and her mom co-signed for her, but her mother filed for bankruptcy 3 years ago.

Jesus, I don't think that's even legal here

>American consumerism

We learned from our ancestors.

>Because they are THAT stupid
Cool projection bro.

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That doesn't even makes sense. You must be Australian.

>$455 for a $16,000 car
Did they have bad credit or something?

Gets you nice apartments and now some places of employment are looking at your credit score as another metric for highering.
>low score= not responsible
>high score = responsible

Unless you want to live a NEET lifestyle. In which case, you'll never get anything other than a beat to hell shit box. If that.

>tfw I have nothing to do except work on my beat to hell shitbox
>mfw my shitbox is a better car than most on the road
>tfw a dinged up 2L 4 banger feels like a stealthed sports car when everyone else is driving a 1.3 cuckmobile

>yfw when a cunt on a phone totals it
>yfw when no moneies to rebuild it/replace
>yfw when no moneies because muh neet lifestyle.
I'd suggest you sell your wannabe supercar shitbox and start taking the bus.

Also
>yfw you mum starts demanding rent from you.

>500$/week is more disposable income than half the population has

>courtesy of unemployment insurance

>Pay 28.9% on a $30,000 car
>$30,000 car is now $38,670

I was seriously looking at buying a Jaguar XE, but I think I'll wait until they hit the used market in 3 years. Looking at A4s, which are roughly the same price new, they lose 60%+ of the value within 3 years, down to less than £10,000 from the original minimum price of £25,000

Because people own calculators

Thats uh 28.9% PER YEAR

That's why im beginning to look at XFRs. I'd go for the XE because I prefer the smaller size, but I would like the extra power of that 5.0 S/C V8. And there's the fact if you get one there aren't many option boxes left unchecked so no real hunting for a specific option package. I'm seeing them for under 35k regularly and a few closer to the low 20s if id rather have 40-60k miles.

1.99% on a 60 month loan for 23k only comes out to about 1400 worth of interest expense.

Hey its worth it to some people if you can't get your dream car used.

2.5% apr on a $30k loan over 5 years is literally $2000. That's $400 extra a year or $34 a month. Literally nothing for the convenience of not having to save for a decade to buy a new car outright and it boosts your credit score which like it or not is a fact of life.

Unless you live in a country where you get cucked by having to improve your credit score there is no reason to ever finance a car.
The money you are paying extra over the life of the loan could as well have been invested in other things like funds actually making you money over the same amount of time.
If you don't have the cash on hand you should just buy a used shitbox instead.
Instant gratification is a horrible meme and you never know when your life could go to shit and suddenly you can't pay any of your loans anymore.
inb4 muh dreamcar etc, if that's the case you can still save up for when you actually have the cash and get a newer version if that strikes your fancy or nos in a couple years time.

Use value of a car is always more than it's exchange value if you have a job and the car takes you there.

If you can get 2%-3% interest rate then financing is probably okay although the majority of people who both qualify for that kind of rate and who are looking to make a significant enough car purchase to require financing are unlikely to have the time to really enjoy much of anything.

did you not see the 28 percent interest rate?

It mostly depends on the interest rate they charge you. If you pay something in the 3-5% range, that's fine, since you can use the excess money and invest it to make money back. If it is anywhere above 10%, you are paying way too much, since there is no way of making that much return safely in any investment. Also, yeah, you are paying more for a car that way, for any financing.

This user gets it. The opportunity cost of not having a car while trying to save up for one is greater than the interest on a reasonable car loan.

Of course if you have shit credit that would result in insane interest rates, you need to buy a shitbox with cash to drive while you work on your score.

>Treating NEET like a legitimate lifestyle choice
You understand that your mother is eventually going to kick the bucket, right? (probably that much sooner, from the shame/stress of having raised a failure of a son)

I plan to kill myself when my parents die.

More importantly, why do people even take out loans for shitboxes?
You're not gonna feel a big difference between a modern shitbox and an old one, besides, for half the price of a modern shitbox you can get a luxury car from the 90s.

>Mother dies
>Inherit $400,000 home
>Sell home
>Buy $90,000 apartment with garage
>Spend rest of life buying shitboxes and collecting NEETbux

Well they could have had good credit and the dealer/lender was a piece of shit and they didn't know any better.

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Some people can only afford $140/month on a used car and not $420 on a new one.

Why wait faggot

this is the dream