Car Loans – Long Terms 1

I’m Miriam Neff and I’m Valerie Neff Hogan with Wise Women Managing Money.

M Lenders are creative and have more ways than ever to lure you into unnecessarily long loan contracts. 

America’s car loans are a 1.2 trillion-dollar business, extending terms as long as eight years. 

V Really!  How many own a car that long?  A used car?  They wish to lure you with that lower monthly amount over 5 years.  Likely the car will have costly repairs in a few years and you’ll want to get rid of it.  But you can’t get rid of your loan obligation.  Then you may owe more than the car is worth.

M Pause, lower your wish list on that car.  Drive it longer and save to pay cash.