It is a trend that is becoming more popular month after month. Will it take you a while to pay off your car? You are not alone.
Forbes reports that the average auto loan term reached a record length earlier this year. 69 months or almost six years is now the norm for the amount of time it takes to finish paying for your vehicle. Many people are settling with paying more interest over time to get a lower monthly payment.
Part of the reason why is the price of new cars. A lot of consumers would like to save money on gas, yet those type of cars are not cheap. Also, a longer loan term allows you to afford a more expensive vehicle. the downside to a longer loan term is having to come up with the equity if you decide to trade in your vehicle. And the chances of you owing less than your trade becomes slim to none if you have a long term loan.
If you decide to get a new vehicle, what is your max loan term?
