Thursday/ the 97-month car loan

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I’m a pedestrian on the Olive Way overpass of highway I-5 late Thu afternoon, looking north. It’s 5 pm, so northbound traffic is slowing down.



So with the economy slowly improving, car sales are back, and so are traffic jams on the freeways around the major cities in the country.  On average, there is an uptick of 4% in congestion so far this year, after a 22% drop in congestion from 2011 to 2012.  These are numbers from the INRIX traffic score card, here As for car sales, there are now car loans available for an astonishing 97 months.  Better take a hard look at a cheap used car, the bus, the train, car pooling, making do with one family car, before signing up for that loan!

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This photo illustration from the weekend’s Wall Street Journal. The $31, 032 is the average price of a car and the $460 a month is what the buyer will pay for each of 97 months. So let’s see. 97 times $460 comes to $44, 620 : the buyer will pay some $13,000 in interest. And it will be a long time before the buyer comes in for another car!


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