Why do Americans take out car loans?

Wait, so you're saying car loans only exist in America?

Sorta, alot of places dont bother because they wont get any money out of retarded single mothers, and their debts dont immediatly get paid the second they go in jail.

What the fuck are you talking about, in what kind of fairytale country do you live in.

People take loans for houses or rent them. People lease or take credit loans for cars.

My first car I bought with my own money for 3k EUR a mazda 3. Sold it, took a loan for a new car. Which I sold after 2 years, covered my loan and am now sitting with 4k. Thinking of doing the same once again.

You're full of shit then. Europe is almost loan free when it comes to cars. We are not like like Americans who gladly take a 50k loan with an APR of 4% for 8 years.

>Europe is almost loan free when it comes to cars
gonna need some numbers

Please dont turn my thread into number faggitry. K thanks.

>mfw ive completed everything not involving relationships up to "rent on your own" at age 21
having a gf is overrated right

>ultimate guide to life
>age 37
>earning over 40k a year
Sounds like the ultimate failure guide to life. I was pulling in over 40k a year when I was 27.

tfw 24 and have done:
>First kiss
>First full time job
>Pass driving test
>Buy first car
>Move out
>Be a bridesmaid or bestman
>Buy first house
>Start earning average wage
>Buy a second car
>Think about starting a business
>Start enjoying two holidays per year
>Start earning 40k a year (kiwibux)
>Look at buying property to let
KING OF NORMIES!!!!

Because you can get interest rates that make it smarter to finance than to piss away thousands of dollars on a depreciating asset. Smart people make their money work for them.

>mfw literally everything on this list is a >haven't done yet

this is the most fucking retarded guide. jesus h christ no wonder it took him 37 years to earn 40k a year.

Why are you lying? Sure the extreme case you put is rare here, but people do take loans for cars. Everyone I know has done it or drive a sub 5k car. We all earn either an average or a higher than average salary. Get your head out of your ass.

I know nobody who has a loan on a car.
All of them just save money until they can afford what they want.
t. Austria

>not capable of getting cash together for anything, yet are quite happy to pay out the ass for financing shit
That does not make any sense, since you pay more when buying something on a loan than you would if you save the money first and then buy it.
You basicly pay interest rates on interest rates forever, wich are additional costs, in german this is called Zinseszins...

>inb4 need car now
Shitboxes are fucking cheap, just get a 200€ twingo.
>inb4 burger notwingo
There are other cheap used cars...

Also:
Don´t ever get something expensive as a first car, because you will fuck up at some point.
Cheap cars don´t need a expensive insureance covering any damage on your car, if you damage your car it is cheaper to buy another one every 1-2 years than to pay the extra costs of a better insurance.

The only thing you should get a loan for is a house, since the interest rates are usualy lower than renting.

Everybody either buys car with cash or adds it onto their mortgage, theres some really retarded cunts who will get loans, but its not common.
t. New Zealand

>Then that

Why can europeans use grammar correctly?

This, take the bikepill.

How do you carry shit?
>inb4 quadbike

That's probably in POONS though, not USD.

Americans make questionable decisions in general

It's not limited to just cars

backpack and gear sac.

Load your stuff in an Uber and tell him to follow you along.

Real money or worthles USD?

I litteraly just came back from getting groceries for the week on my bike, the only thing you need is a large backpack.

>Hasn't had sex

The stress of upkeeping a car older than 5 years is too much for them

>tfw first kiss at 21
>no wait it was 14
>tfw getting Alzeihmer at 26

I'll take "written by 22 year old facebook page admin" for 500, Alex.
>rent on your own
>rent with a partner
>>>>>>>>rent
>have first child
>start earning average wage after that
Are people really this retarded?

Due to depreciation and how long the car is underwater most loans top off at 6 years.

Also automaker financing arms will make the loans cheap as fuck for people with good credit to get them into new cars. My Ford's loan was 0.00% (as in, no interest) for four years.

my thought process was financing a car is one of the first steps you take to building very good credit for a house someday

>credit scores

That's because they are putting the cost of the loan on up front, you can save that by paying cash and getting a much better deal.

The average US salary is equivalent to £39160 and is not reached till the age of 38. $40,000 is only £30k and everyone should be earning that by 25.

Because we can afford it.

>Tfw go to commiefornia private uni
>60k a year
At least it's a 5 year masters program

Nope. My score is 720, never had a car loan or credit card, just paid utilities bills on time. The "you need credit to get a good credit score" is foisted on the stupid by the jews.

When you buy used, the dealer can use the ability to finance and the terms of financing as a way to control the sale price of the car. This is why smart people shop at multiple dealers and banks, and why if you want to get the best price on a used car (and can't afford to pay cash), you're better off having the financing come from the bank, because then you walk into the dealership with both of you knowing that you have full leverage to just buy a car somewhere else.

When you buy new, you can haggle over the price somewhat but the dealer isn't going to go below the invoice from the manufacturer without you having access to a plan (like Ford X-Plan), and the automaker will typically offer a financial incentive (cash applied to the invoice) if you finance through the automaker. Ford gave me $500 cash incentives on top of others specifically for getting the interest free (0.0%) loan through their financing arm.

If you could afford it you wouldn't need the credit.

>Because we can afford it.
usatoday.com/story/money/cars/2016/09/06/car-loans-now-top-1-trillion-delinquency-rates-rise/89911210/

>the dealer isn't going to go below the invoice from the manufacturer without you having access to a plan (like Ford X-Plan)

Yes they will you can save masses by paying cash for new cars.

>his credit score is only 720

k3k

Only idiots sit on tens of thousands of dollars instead of putting that money to work by investing

Credit is good for building a credit rating. We also make enough to not have to drive around in 1.0L shitboxes.

>Black people and single mothers
wew

Some need something reliable or something right now due to an accident or theft.
And a bike works untill you got kiddos. Then you or your spouse will need a car to tote their ass' around

Jesus fuck

720 FICO is average and you need a 760 or higher to get the best terms on installment loans.

jalopnik.com/what-you-should-know-about-being-a-cash-buyer-at-a-deal-1737301990

>inb4 someone crys about jalopshit

Aspirations for the UK are pretty low.

I'm 24, married with 2 financed cars and I own a home. I'm up to my fucking eyeballs in debt, but it doesn't matter, because we're all going to die.

Unless you're born into wealth, you'll inevitably become a credit and wage slave.

>married at 24 with 3 major sources of debt
>lol we're all gonna die

>Jalopnik
meme

It's true though. Dealers find it easier to wrap extras including warranties in financing, and even if they get no extras (just the car sale), the financing company either cuts a portion of the interest off (3.5% interest loan, dealer might get 1%) or a flat incentive payment (most automakers in the US will give the dealer an incentive payment after a person has made their first three payments). So the dealer makes more money on the sale of the car by having you finance it then they would if you paid cash in any event.

here
carprousa.com/will-get-better-deal-paying-cash-car-car-pro-commentary
>One important note: dealers like to tell you to make the first three payments before you pay the car off. Dealers are paid a flat fee in many cases, it’s normally a couple of hundred dollars. That flat fee is charged back to them if the consumer pays off their car before three payments are made, but by law, you can pay it off at any time.
>Getting a better price in the case of paying cash even when there are no additional rebates, just isn’t true, not any more at least. The last figure I saw nationwide showed that dealers average $700 in finance income from every car they sell. These profits are derived from the sale of extended warranties, credit life insurance, gap insurance, etc.
>Going back to my days as a dealership owner, when we were on a tight deal, meaning we were at the point of parting ways with the customer and having a no-sale, I would ask how the customer was paying for the car. If they were financing with us, I would accept the deal in hopes of making a profit on a warranty or some other product. If they were paying cash, I would likely pass on the deal. So as you can see, paying cash was a detriment to the consumer instead of a benefit.

>can
kek burger

America is a third world country.

Because (((They)) Have been up-pricing base model cars to the point where you really cac't buy one for under 16k. The American market no longer sells a true base-model car. (((They)) have convinced the buyer they need an iPad glued to the dashboard, a backup camera, and power windows, and that manual transmissions are an ancient ritual that you need a PhD to understand.

But new cars are usually just a bad idea anyway. Also, people think that driving the most expensive car they can afford will bring them some sort of higher social status, while fooling no one.

>backup camera
Fucking mandated as of 2016. Not an option.

If that's the case, then every other country on the planet is third world as well.

>he has no idea what 3rd world even means

>you really cac't buy one for under 16k
Inflation, dumbass

And all those power options end up being cheaper to produce than the non-power alternatives, economies of scale

If you want brand new 90s shitboxes go to Mexico
Pic related: 2016 Nissan Tsuru. Look familiar?

Cars prices aren't just high from inflation, they flat out cost more, automaker profit margins are way higher than before.

Damn you're stupid. Adjusted for inflation the NA Miata had the same MSRP as the ND Miata

>It's another dumb millennial doesn't understand inflation episode

REMEMBER WHEN GAS WAS 10 CENTS A GALLON GUISE

This is... beautiful. Unlike those bloated behemoths with slits for windows and angry insectile grilles/headlights. Too bad you can't buy it because MUH SAFETY.

Nothing's stopping you from moving to Mexico and buying one

Pay out the ass? Average apr is lower than ever, heck I dont know anyone thats had more than 4%. No reason to nit pick over ~$800 on a twenty thousand dollar purchase

>implying property ownership isn't the ultimate jew.

Detroit is an example of an industrialized country?

Why do Europeans rent their 90 sqft flats?

>
>
>Please dont turn my thread into number faggitry. K thanks.
It isn't yours
It's my thread bitch

Thanks for letting everyone know that you don't understand what "3rd world" and "country" means

Because car dealerships jack up prices and can get away with it due to anti-competitive franchising laws in individual states.
youtube.com/watch?v=uMWmYJOa-BM

It's been estimated that cars would cost as much $1800 cheaper if car manufacturers could sell directly to consumers.

OK why aren't you putting that into a retirement account? That is why I take a loan on a car because if I have 20 grand or more lying around than I'm wasting it. That money is invested and making more money for me.

Are you being retarded on purpose?
Adjust a car from the 70s for inflation.

>cars would cost as much $1800 cheaper if car manufacturers could sell directly to consumers
>new base model Dacia Sandero costs 7k
>would cost 5,2k

That can´t be real...

A 1970 Impala would still go for $27k-$30k adjusted for inflation, same as what you could buy a 2017 Impala for

Congrats comrade Stalin for being an idiot.

>I'm not dumb, you're dumb!
Keep at it, moron

>can't win an argument
Way to go champ.

>thinks he's winning by failing at English

>think he's winning by responding

Mobility. You can move out whenever you want. Property binds you.

HAHA I TROLL U

Filthy vagrants

Why do Europeans ride the bus and have no credit?

>Why do Europeans ride the bus
I don´t.
>have no credit?
Because I don´t waste money on interest rates.

>Oh no a bank made 1500 off of me over 4 years!

>Ill show them ill drain my bank account!

This is the real question.

Europoors only buy cars in cash because they can't afford anything else. $100,000 car, >$5k finance over 5 years, $1000 a year, while my initial $100,000 sits in investments making 7% per annum.

Let's do the Challenger, a car much more similar to it's 1970 counterpart than the new Impala is. In 1970 the MSRP for the base model was $2,953, inflated to today's prices that would be $18,911. MSRP for the lowest trim Challenger today is $26,995.

Except that most Americans don't walk into a finance already being able to afford the car. They walk into finances barely being able to afford the down payment. There are no savings making returns for them, they're just too impatient to save up money.