So I bought a car last year for 37k total and put 12k down making my loan 25k, 6 years with a 3% APR. My cars current value is 30k. From what I’ve heard and have seemed to find online is that the bank still owns 25k on the car, the 5k I’ve paid so far on the loan is theirs and doesn’t go towards my ownership of the loan/car, and I only get 5k back. Is that correct? I don’t understand why but I’m also not the most financially versed
In: 0
Cars plummet in value the second after you buy it, then astronomically drop when you drive it off the lot. It’s because cars only retain value so long as they aren’t suffering wear and tear.
The loan is the cost of the car brand new. If loans reflected the car’s real value, we’d only end up paying a couple thousand dollars for a 30k car.
A house, you can upgrade, update, add features. Cars . . . Nobody else wants your custom paint job, speakers, seat fabric, custom parts, etc. that stuff will actually hurt the value worse.
Unless you’re building hot rods or are refurbishing classic cars for rich assholes, there isn’t any money in car investments
Latest Answers