TIPS TO AVOID A LONG CAR LOAN
Shop for a less expensive vehicle. It may not be
what you want to hear, but if the payments are
making you wince, there’s a good chance you’re
shopping above your budget. Ask yourself: Do
you really need a midsize SUV when a compact
one will easily handle most tasks?
Consider buying an older used car. Look for
something about 6 to 7 years old. Yes, the
interest rates are higher for used cars, but since
these vehicles cost significantly less, there’s less
to finance and the payments will be lower. This
approach should help make a lower-term loan
more attainable.
Since 48-month loans are impractical for most
people, we recommend a 60-month auto loan
if you can manage it. It is a more realistic sweet
spot that combines a lower interest rate with a
manageable monthly payment, provided you
make a solid down payment.