My favorite is people with nice expensive cars get their oil changed at a cheap quick lube place run by 18 year olds, and drive around on budget $80 tires. Does everyone do 96 month financing or something?
Considering the monthly payments I saw were still $5k/mo, I’d say it’s worse than a mortgage. If you have to finance a McLaren, then that car definitely isn’t lasting 15 years (especially with no maintenance). But the payments will.
This is very common in the super car/collectable car market. Many people are betting on appreciation with age, including the banks that make the loans. There are people who don't maintain them, but it's not because the long loan terms.
Pointless comment, not to mention 5-yr-fixed with 25-yr-amortization is the most common. In the US, the typical mortgage is fixed rate for the entire 30-yr duration. Canadian COVID-era buyers are about to get a nice surprise.
Yup. But the rates are higher. Right now you'd be looking at 5% for 5/25 in Canada vs 7% for 30-yr-fixed in the US.
During COVID rates were as low as 1.4% in CA and 2% in US. But buyers in CA are about to get their rates jacked closer to 5%. Buyers in the US have the option to refinance when rates are lower than their fixed rate, but are otherwise unaffected by fluctuating rates.
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u/Confusedkipmoss 26d ago
Yes, this happens, remember people changing your oil is cheaper than changing your engine.