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, individuals 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. You will pay much less interest if you pay down the principal just a little faster reminds Cars Direct.
Credit Unions won’t work
Credit unions tried to use the 72 month auto loan once, Automotive News. They tried harder to get the loans offered when auto manufacturing started doing more zero financing packages. The Kelley Blue Book (KBB) suggests the 72 month loan isn’t really popular anymore. 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 recession has affected loans so much the KBB suggests it is the reason 72 month loans are hardly used anymore. Right now, more people are putting larger down payments on their cars. Dealers are losing money, but consumers are getting some great trade equity.
Additional info at these websites
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
