Episode 597
Cardboard Keys, Facebook Pics, and 7-Year Debt — Congrats?
Kelley Blue Book says the average new vehicle just hit an all-time high — $51,109 — and used cars are pushing about $27,000. More than a fourth of folks are financing new rides with loans that last seven years or longer. I'm telling you, car dealers are loving this: cheesy Facebook pics, giant cardboard keys, and people signing up for payments that outlast their kids’ school days. You buy a truck when your kid starts sixth grade and you’re still paying at graduation — check-engine light on for three Christmases, still coughing up cash. They’ll charge you $299 just to look at it, $150 for an oil change, $80 for an air filter, maybe $400 because some computer sneezed, then ask if you want to trade it in for another seven-year nightmare. At least a loan shark breaks kneecaps with dignity — dealers just put you in a new loan and smile for the camera.
Takeaways:
- I point out Kelley Blue Book says average new vehicle price hit $51,109 and used cars average about $27,000.
- More than a fourth of buyers are signing up for seven-year-or-longer loans, which is straight-up mortgage territory.
- I roast dealerships for grinning on Facebook while folks end up with $900 monthly payments and 150,000-mile headaches.
- Service costs are insane: $299 diagnostic fees, $150 oil changes, and constant trade-in pitches from smiling salespeople.
- I'm exaggerating but seriously: with seven-year loans your kids or grandkids might still be paying when the car dies.
Transcript
Good morning.
Speaker A:It's Haystack.
Speaker A:And I remember when spending $50,000 on a car, you were buying something really nice.
Speaker A:Really, really nice.
Speaker A:A Mercedes, a Cadillac.
Speaker A:Something that made the neighbors think you were dealing drugs.
Speaker A:Well, according to Kelley Blue Book, the average price of a new vehicle has hit an all time record high.
Speaker A:$51,109, $51,000 Even the average used car pushing $27,000.
Speaker A:And you know who's just loving this?
Speaker A:Car dealers.
Speaker A:I mean you can't scroll through Facebook anymore without seeing some jackass in a cheap suit standing in front of a pickup truck grinning like you just won the lottery.
Speaker A:Congratulations to the Johnson family on their brand new Ford F150.
Speaker A:Yeah, congratulations.
Speaker A:You just talked some poor bastard into a seven year loan on a truck that costs more than his parents first house.
Speaker A:And that's the part of the story that really got my attention.
Speaker A:More than a fourth of people are financing new vehicles and signing up for loans that last seven years or longer.
Speaker A:Seven years.
Speaker A:You could buy a car when your kids start the sixth grade and still be making payments when they graduate high school.
Speaker A:And by then Your car's got 150,000 miles on it.
Speaker A:Check engine lights been on for three Christmases.
Speaker A:You're still making payments.
Speaker A:Of course the sales guy doesn't care.
Speaker A:He's already posted your picture on Facebook.
Speaker A:They're always shaking hands with their customers, holding those giant cardboard keys.
Speaker A:It's like a trophy photo from a safari hunting trip.
Speaker A: payments until: Speaker A:And heaven forbid you take that thing back to the dealership to get service.
Speaker A:Well, sir, It'll be a $299 diagnostic fee just to look at it.
Speaker A:To look at it for $300.
Speaker A:I expect you to stare at the son of a gun until it fixes itself.
Speaker A:They want 150 bucks for an oil change, $80 for an aero filter and $400 cause some computer told them something they don't understand.
Speaker A:The whole time there's some smiling sales guy in the lobby trying to convince you to trade it in.
Speaker A:Good news, we could get you into a brand new truck for just $200 more a month.
Speaker A:Buddy, at this point I'd get a better deal from a loan shark.
Speaker A:I mean at least a loan shark's got the decency to break your kneecaps when you can't pay.
Speaker A:Car dealer just put you in another seven year loan and ask you to smile for Facebook.
Speaker A:You remember when a car salesman would ask, what kind of car are you looking for?
Speaker A:And now they say, how many generations of your family are you willing to co sign?
Speaker A:And with these seven year loans, that's not even really a joke anymore.
Speaker A:Your grandkids might inherit the damn payments.
Speaker A:And you can bet when you finally get the thing paid off, there's gonna be some donkey at the dealership, call you up and say, hey, great news.
Speaker A:You're pre approved to start this whole nightmare all over again.
