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I'm probably being prejudiced here, but I'm a little irked that someone who won't put a coherent sentence together is complaining about the persecution of their $100k Nazi vehicle.
At least in the US people routinely get predatory loans for cars with super long terms to make the monthly payment lower. A base model cybertruck is "only" like $70k so at 7.3% APR and a 7 year loan you can get that down to $900 a month, which is still a lot of money but some people make bad financial decisions of this level all the time, and I would imagine the people who would buy a cubertruck are more likely to be in this group than not.
The US car market sounds absolutely wild, I have zero interest in owning any modern car long term due to how expensive it would be to fix once its out of warranty and after 7 years its going to be worth fuck all so I would have ate the entire purchase price plus interest.
I believe the most common way in Europe for private buyers of brand new cars is PCP, so the purchase price is offset by a guaranteed future value for the car at the end of the deal (usually three years), which the finance arm of the manufacturer is on the hook for. If its worth more you sell the car on and make a "profit", if its value is less you hand it back and you lose nothing.
I have done the latter with multiple cars and it costs the financing arm thousands in each case.
Sure I never own the car, but I really don't want to, and this enables me to only pay at most the depreciation of the car during my ownership period.
Obviously buying used and running it till it drops should be cheaper, but that's complicated by cost savings of fuel vs. EV charging costs, the ever increasing repair costs as you start to age out simpler older cars, and other increased running costs such as insurance.
Bear in mind this is almost entirely caused by the stupidity of the American consumer. You can also lease cars like you're describing, and you can also buy a used Honda Civic for under $20k that will last you forever and you can get loans on more reasonable terms. People just don't do those because they see they can get a really nice car for an "affordable" monthly price and get stars in their eyes.
Leasing is something separate here, with a PCP deal its usually more expensive and you get the option to buy/sell it on directly and make a profit, which you do not with our leasing. Leases you can ask to buy the car at the end but you will pay full market value rather than the GFV, which can be less than the market value and they cannot say no.
Leases are also far more strict about wear and tear damage, for example you cant really get away with curbing the wheels but you can for small dings with a PCP.
That’s called a lease here, and you don’t actually own it. You are basically renting it long term.
Thats also a lease here. Lease their company name goes on the ownership papers, PCP with the GFV, your name goes on the ownership papers.
That's horrible. 7 years is almost the average length of ownership in the US.
Exactly, pay it off just in time to get a new predatory loan with peanuts in exchange for the trade in.
Semi-related, ask your friends how many of them own their phones vs paying monthly.
That's some dystopian nightmare fuel. Are you sure you're not just quoting a Black Mirror episode?
I would, but I have to work extra. I'm still paying off the pizza I ordered yesterday. That's a joke, but you sent me down a rabbit hole. The things getting financed now are insane. I hope people realize that the money supply is affected by loans and that financing things contributes to inflation.
My best friend last week was stuck in line at the wing shop behind a woman who ordered 60 chicken wings. They gave her the total and she pulled up klarna on her phone. He says it popped up "approved for payment, installments begin 4/23"
For WINGS. A payment plan, for dinner. It's already over.
I'm sorry to hear that.
I bet they're really serious about their payments, too. Once you miss a few, they take you to court. Imagine being about to bite into a chalupa when the sheriff yanks it from your hands and informs you that Klarna has put a lien on it. He puts the chalupa in its own locking cubby, in a large plexiglass case full of other impounded items in the restaurant. You quickly open the app and make a payment. He receives a phone call and then retrieves your chalupa from the transparent lockers. He hands your chalupa back to you. Meanwhile, you've just made a payment you can't afford. Some other bill will go unpaid. Also, your APR went up for being a higher default risk. Now everything costs just a little bit more.
This has been an exaggeration, but it's not as far off as I would like.
Right about now is precisely when I wish I had my handy copy of the libertarian dream pasta
Then see it now!
The Libertarian Paradise is a satirical piece of fiction written by Tom O’Donnell titled L.P.D.: Libertarian Police Department for The New Yorker back in 2014:
https://www.newyorker.com/humor/daily-shouts/l-p-d-libertarian-police-department (paywall)
I was shooting heroin and reading “The Fountainhead” in the front seat of my privately owned police cruiser when a call came in. I put a quarter in the radio to activate it. It was the chief.
“Bad news, detective. We got a situation.”
“What? Is the mayor trying to ban trans fats again?”
“Worse. Somebody just stole four hundred and forty-seven million dollars’ worth of bitcoins.”
The heroin needle practically fell out of my arm. “What kind of monster would do something like that? Bitcoins are the ultimate currency: virtual, anonymous, stateless. They represent true economic freedom, not subject to arbitrary manipulation by any government. Do we have any leads?”
“Not yet. But mark my words: we’re going to figure out who did this and we’re going to take them down … provided someone pays us a fair market rate to do so.”
“Easy, chief,” I said. “Any rate the market offers is, by definition, fair.”
He laughed. “That’s why you’re the best I got, Lisowski. Now you get out there and find those bitcoins.”
“Don’t worry,” I said. “I’m on it.”
I put a quarter in the siren. Ten minutes later, I was on the scene. It was a normal office building, strangled on all sides by public sidewalks. I hopped over them and went inside.
“Home Depot™ Presents the Police!®” I said, flashing my badge and my gun and a small picture of Ron Paul. “Nobody move unless you want to!” They didn’t.
“Now, which one of you punks is going to pay me to investigate this crime?” No one spoke up.
“Come on,” I said. “Don’t you all understand that the protection of private property is the foundation of all personal liberty?”
It didn’t seem like they did.
“Seriously, guys. Without a strong economic motivator, I’m just going to stand here and not solve this case. Cash is fine, but I prefer being paid in gold bullion or autographed Penn Jillette posters.”
Nothing. These people were stonewalling me. It almost seemed like they didn’t care that a fortune in computer money invented to buy drugs was missing.
I figured I could wait them out. I lit several cigarettes indoors. A pregnant lady coughed, and I told her that secondhand smoke is a myth. Just then, a man in glasses made a break for it.
“Subway™ Eat Fresh and Freeze, Scumbag!®” I yelled.
Too late. He was already out the front door. I went after him.
“Stop right there!” I yelled as I ran. He was faster than me because I always try to avoid stepping on public sidewalks. Our country needs a private-sidewalk voucher system, but, thanks to the incestuous interplay between our corrupt federal government and the public-sidewalk lobby, it will never happen.
I was losing him. “Listen, I’ll pay you to stop!” I yelled. “What would you consider an appropriate price point for stopping? I’ll offer you a thirteenth of an ounce of gold and a gently worn ‘Bob Barr ‘08’ extra-large long-sleeved men’s T-shirt!”
He turned. In his hand was a revolver that the Constitution said he had every right to own. He fired at me and missed. I pulled my own gun, put a quarter in it, and fired back. The bullet lodged in a U.S.P.S. mailbox less than a foot from his head. I shot the mailbox again, on purpose.
“All right, all right!” the man yelled, throwing down his weapon. “I give up, cop! I confess: I took the bitcoins.”
“Why’d you do it?” I asked, as I slapped a pair of Oikos™ Greek Yogurt Presents Handcuffs® on the guy.
“Because I was afraid.”
“Afraid?”
“Afraid of an economic future free from the pernicious meddling of central bankers,” he said. “I’m a central banker.”
I wanted to coldcock the guy. Years ago, a central banker killed my partner. Instead, I shook my head.
“Let this be a message to all your central-banker friends out on the street,” I said. “No matter how many bitcoins you steal, you’ll never take away the dream of an open society based on the principles of personal and economic freedom.”
He nodded, because he knew I was right. Then he swiped his credit card to pay me for arresting him.
Godspeed to you, you beautiful soul.
OK, it’s not just me then
Well its at least three of us now
There are dozens of us!
Dozens!
To be fair, people like this are more than likely paying $1000/mo for 8 or even 9 years at absolutely dogshit APR. They’re getting fucked from both ends on these things.
For that kind of money, they should have gotten an RV. Then they could at least live in it if they need to.
But it has tent mode! You can’t set it up easily and you can’t use the power while plugged in but it’s totally a camper!!!
That's another hilarious part. People have been sleeping in minivans and SUVs, and pickup beds for a long time. How did they manage to make it worse? I'd rather spend a night in a Grand Cherokee than that nonsense.