Longer Loans Means You Are Being Taken For a Fool

Car loans are now lengthening again — up to 96 months now! In fact, 33% of new loans are now 72 months or LONGER. This is bad news for consumers as they will now be carrying finance costs for vehicles for virtually the entire useful life of the vehicle: 8 years of finance costs on a vehicle that will die, on average, in 10 years. Remember, Consumers, to always look at the box at the top of the contract that says FINANCE CHARGE-THE DOLLAR AMOUNT THE CREDIT WILL COST YOU. At 96 months your CREDIT will often cost MORE than the CAR itself. What’s worse, if you are going past 48 months, experts agree, you are taking on more debt than you can afford! Just as bad, experts agree that long-term loans mean you will be “upside down” on your vehicle (owe more than it’s worse) for most of the time you have the vehicle!
This 96-month loan hike also proves consumers remain irrationally fixated on “monthly payment” above all else. That focus is backwards and leads to huge losses and ripoffs for consumers. ALWAYS negotiate the price of the vehicle alone and first. ALWAYS have your financing arranged with your bank or credit union BEFORE going car shopping. Any other way leads to PAYMENT PACKING by dealerships whereby dealers insert hidden charges for unwanted, overpriced items — and you won’t ever know!