Financing before looking at cars is always advices. How long should your autoloans be? Three-, five- and six-year loans are one of the most common opportunities accessible, and once upon a time, the latter option was popular. Studies for the automotive industry indicate the six year, or 72 month, loan is beginning to disappear though.
Problems with the 72 month automobile loan
According to Yahoo Answers, consumers should consider how long they plan to keep their car when they look at length of loan. 72 month automotive loans are probably not the right choice for since on average, people exchange cars after only 3 years. It becomes easy to owe more than your car is worth, called an upside down loan, in this situation. If you are the type of person who plans to keep the car for five years or longer, then the 72-month auto loan would make more sense. Cars Direct reports that paying down the principal will reduce the total interest you end up paying.
Credit unions failure when trying
Credit unions tried to use the 72 month auto loan once, Automotive News. Auto manufacturers offered zero percent financing packages which was when they tried harder to get these loans out. The Kelley Blue Book (KBB) shows us the 72 month auto loan is no longer receiving business. 60 month loans come in as probably the most popular followed by 48 and 36 month loans. The KBB says the 72 month auto loan isn’t really used anymore because of the recession. Right now, more individuals are putting larger down payments on their cars. Dealers are losing money, but consumers are getting some great trade equity.
Discover more information on this topic
Automotive News
autonews.com/article/20100723/BLOG14/100729946/-1
Cars Direct
carsdirect.com/auto-loans/seventy-two-month-used-car-loan-good-idea
Yahoo Answers
answers.yahoo.com/question/index?qid=20080317121437AAGnaNj
