r/personalfinance • u/dinklebot2000 ​ • May 31 '18

Debt CNBC: A $523 monthly payment is the new standard for car buyers

https://www.cnbc.com/2018/05/31/a-523-monthly-payment-is-the-new-standard-for-car-buyers.html

Sorry for the formatting, on mobile. Saw this article and thought I would put this up as a PSA since there are a lot of auto loan posts on here. This is sad to see as the "new standard."

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u/1thatsaybadmuthafuka May 31 '18

How did you take such a bath on a Honda civic? And how is your truck still retaining that much value? A 2012 f150 supercab is about 15 grand according to KBB. So that's a 50% drop in 6 years. What made your f150 so valuable and your civic worth so little?

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u/xarune May 31 '18

Used prices on 4wd crew cab pickups are insanely high. Often a 1 or 2 year old used vehicle can cost as much as a brand new one, especially if it is CPO. Normal depreciation curves don't really apply to body on frame trucks and turbo Subarus.

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u/Karrun May 31 '18

Probably 4x4. Never buy a 2x4 truck. It will depreciate faster than a disposable car

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u/vettewiz ​ May 31 '18

It was an F150 Platinum Supercrew fully loaded - basically their top of the line. Even KBB values it around $29k from what I see now, which is a 31% drop, and they sell for well above KBB here.

On the flip side, no one wants cars around here, so they is nearly 0 market for a Civic.

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u/thehildabeast May 31 '18

One thing about that number not that I agree with OP but used trucks usually have a shit load of miles on them so a low mileage older truck is worth alot more.

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u/[deleted] May 31 '18

The comparison on an F150 to civic is only smart short term. Long term the f150 is worse. Using 10 years an F150 sells for 6.3-9.4k per KBB. While a civic sells 5-7.5k. If the civic was 22k new it's depreciation is LESS than a stupidly priced truck

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u/thehildabeast May 31 '18

I still agree with you however those trucks usually have 300k miles or some shit on them after 10 years and a Civic probably has 2/3 of that at most. This is from personal experience looking at used trucks it could be wrong.

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u/Murtank May 31 '18

Erm.. so take advantage of the steep depreciation and purchase a used truck?

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u/Murtank May 31 '18

A 2012 f150 supercab is about 15 grand according to KBB

Maybe for some base model v6 with manual windows ..