Are Long Car Loans a Boon or Bane?
If you want to buy your dream car, but can’t afford the monthly installments that you need to pay off, would a car loan that stretches to 7 years or longer actually lower help with auto loan rates and monthly payments?
At a meeting in February 2008, Toyota Motor Credit acknowledged reducing the consumer’s payments and boosting sales by extending 84-month/7year loans. According to Power Information Network, a unit of consultant J.D. Power and Associates GMAC, various credit unions also offer 84 months; and 0.1% of auto loans are for longer at 96 months to nearly 102 months; around 82% of auto loans range from 60 to 77.9 months.
With today’s credit scenario being what it is, most buyers take long loans to get the best auto loan rates and retain their vehicles for a long time period.
Source: USA Today