#new auto loan
#Average new auto loan is now 66 months< img src= http://static2.consumerreportscdn.org/content/dam/cro/news_articles/cars/CRO_cars_financing_09-13.jpg > When it pertains to new-car loans, lots of people are gravitating towards loans that extend over increasingly extended periods of time. What they may not recognize is that those loans could be hazardous to their finances.According to a current report by Experian Automotive. the average new vehicle loan in the very first quarter of 2014 was 66 months, a month longer than the average over the very same period in 2013. And nearly 25 percent of loans were for 73 to 84 months. We’ve even seen some financing companies use vehicle loan of as long as 8 years.Why the tourist attraction to longer loans? Because they lead to lower regular monthly payments. That motivates you to
purchase more vehicle than you might be able to afford. And automobile dealers get thrilled when they can get customers to concentrate on the low month-to-month payments rather of on the reality that their new automobile is costing twice as much as their moms and dads spent for their first house. But this mortgagelike approach to automobile funding has severe downsides, which is why we don’t suggest buying a cars and truck that needs a loan of more than 48 months.