Financing before looking at cars is always advices. How long should your autoloans be? Even though 3, five, and six year loans are all accessible, six year loans tend to be one of the most popular. Studies for the automotive industry indicate the six year, or 72 month, loan is starting to disappear though.
The 72-month auto car loans has its drawbacks
When looking at a loan length, consider how long you plan to have the car, reports Yahoo Answers. 72 month automotive loans are probably not the right choice for since on average, people exchange cars after only 3 years. An upside down loan, where more is owed than the vehicle is worth, is a distinct possibility here. The 72 month auto loan only makes sense if you’re keeping the car for at least five years. Cars Direct reports that paying down the principal will reduce the total interest you end up paying.
Credit Unions won’t work
Automotive News reports the 72 month loan was a finance product credit unions have tried to offer. They tried harder to get the loans offered when auto manufacturing began doing more zero financing packages. But data from Kelley Blue Book (KBB) and other sources suggests the 72-month auto loan has fallen in consumer popularity. Sixty-month auto loans are the most popular in America, followed by a near second-place tie between 48- and 36-month auto loans. The KBB says the 72 month auto loan is not used anymore because of the recession. Right now, more individuals are putting larger down payments on their cars. Dealers lose out on finance profit, when consumers are coming back with trade equity.
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
