According to data released by Experian, 10.1 percent of all current used car loans are longer than six years - this shows a rise of 11.5 percent over 2012. It is the age of longer loan terms and many car buyers are opting for it because the cars have become costlier and car budgets have become smaller.
A couple of years back, 60-month loan term was the trend. Today, lenders are offering 72-month loan terms. Few car buyers have even received 98-month loan terms for buying cars. If you are in the car market and shopping for a used car, lenders will offer you longer loan terms and lower monthly payments. You may consider it a good alternative because of your over-stretched budget. You already have several payments to make by utilizing the low-household income. And, longer loan term may seem to be the only affordable alternative.
But, you cannot be more wrong. Here are reasons to help you understand the reality of longer term loans.
1.Used car loanshort loan termhigh monthly payment
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