The Facts On Extended Term Auto Loans
The Facts On Extended Term Auto Loans

The Facts On Extended Term Auto Loans

People who long for a car recently want to have an extended-term auto loan. It has become viral all over the world. It is now common for loans to last for 84 months or even longer. But is it to get an extended-term auto loan? We have some reasons why it might not be a too good idea to take out an auto loan of 84 months or even longer than that. This article will discuss these reasons.

Essential Things To Consider About Extended Term Auto Loan

An Increase In Auto Loan Debt-:

Auto loan debt has increased by 81% during 2009, and according to Experian data, it has recently been the third-largest type of consumer debt. At the same time, the obligation of America’s outstanding auto loan balance is more than $1.3 trillion.

Rising vehicle prices are partially the cause of growth in auto loan debt. Experian data shows that the average loan for new passenger vehicles increases by $32,187 during the first quarter of 2019. Over 85% of new cars are being financed with a topping of $500 as average monthly payments.

The larger auto loans become, the more there is an increase in consumers who are stretching out their loan terms for them to be able to make a more manageable monthly payment. In Q1 2019, Experian said an increase in new loans with terms between 85 and 96 months for new passengers compared with Q1 2018.

Reasons Why Long Term Car Loan Isn’t Ideal

As the day passes, long-term car loans have become popular, but that isn’t enough reason for you to get one because there are disadvantages to long-term auto loans. These are:

Paying More Interest:

Smaller monthly payments are the meaning of an extended-term auto loan, but the payment is not the factor alone to consider. If your budget to get an auto loan, it will be nice if you check out the loan’s interest rate. Extended-term car loans have a higher interest rate, unlike short-term loans.

Even if you were fortunate to get a low-interest rate for your extended-term auto loan, after several years of making payments for like eight years above, you would realize that the interest rate will add up over time, unlike a short-term loan.

You Are Likely To Owe More Than The Worth Of Your Car

If payment of an extra $5000 for your new car doesn’t affect you, nonetheless, for you to be “upside-down” on your car loan is very risky. You will have negative equity when you start owing more on your loan than the vehicle’s worth.

If you think of selling the car or it got into an accident, the insurance company’s money or buyer’s money will not be enough to pay off your loan balance. Therefore, after you lose the car, you will still be making payments for your loan, including the price of the vehicle, if there is any need for replacement. So, do you think it’s worth the effort?

Trouble In Making Loan Payment:

As time passes, you can drastically change your financial situation over Eight years and above. Although it can be a positive change supposing you lose your job or an emergency medical bill hits you in the long run, what will you do?

CONCLUSION

Tying yourself down to a 7-8year auto loan can make other financial savings very difficult. Your credit score can be negatively affected, and your car can be repossessed when you have a downturn in your finances. Hence, thoroughly planning and thinking have to be followed through before you embark on an Extended term auto loan.

Car Leases in NJ & NY Done Right

How does a lease work? If you have more questions, we are here to help!

The Vantage Auto Group provides reliable car leasing options in both New Jersey and New York. On our website (https://www.thevantagegroupauto.com/), you can access an entire inventory of marked down vehicles that fit your lifestyle and your budget.

We also provide a selection of luxury cars at rock-bottom prices. These typically come from unions and corporations that can offer larger discounts. Our professional staff is ready to help find a vehicle to fit your tight budget or find financing solutions that fit your poor credit score. Give us a call at (844)-307-3885 to speak with a live agent, or feel free to email us with any questions.

At The Vantage Auto Group, we save you time, money and peace of mind when it come to Buying your New Car!

No need to deal with the headaches of sitting in a dealership for hours on end and haggling with pushy sales reps.  With our robust dealer network, we’re able to get wholesale pricing and guarantee the most competitive lease or purchase price on any new vehicle. We handle all makes and models, so you can be confident that we’ll find the perfect vehicle that fits your needs.

There are many places to lease or purchase your next vehicle.  The products are the same regardless of the source. So it’s the people who make the difference. Our staff is passionate about what we do. We are all car enthusiasts and understand your excitement about finding the right vehicle at the best possible terms. Along with our enthusiasm is our commitment to be transparent about your lease / purchase and our pledge that all dealings with us be fair, and yes, even fun!

Get Started Today With Your Personalized Car Quote from Vantage Auto Group!

Good credit, Bad Credit, or looking to get an approval, CONTACT US Today!  We work directly with multiple lenders to find the lowest possible lease rate on a new car lease. Come banks will even help us offer short term lease as short as 12 months if not ready to commit to a 2 or 3 year lease. We can even help you get out of your current car with our swapalease lease transfer program. when using our swapalease program, you will no longer be responsible for your current car.

Price Reflects TIER 1 Credit Approval. Prices are for new lease vehicles only. Images are for Display purposes only. Price Excludes local taxes, acquisition fee & DMV/title. Pricing, lease term, and miles per year may vary. All Incentives are Applied For Qualified Customers including Loyalty Rebate, Conquest Rebate, VPP Rebates, College Graduation Rebates, and Regional Rebates.

No need to deal with the headaches of sitting in a dealership for hours on end and haggling with pushy sales reps.  With our robust dealer network, we’re able to get wholesale pricing and guarantee the most competitive lease or purchase price on any new vehicle. We handle all makes and models, so you can be confident that we’ll find the perfect vehicle that fits your needs.

There are many places to lease or purchase your next vehicle.  The products are the same regardless of the source. So it’s the people who make the difference. Our staff is passionate about what we do. We are all car enthusiasts and understand your excitement about finding the right vehicle at the best possible terms. Along with our enthusiasm is our commitment to be transparent about your lease / purchase and our pledge that all dealings with us be fair, and yes, even fun!

At Vantage Auto Group, we save you time, money and peace of mind! No need to deal with the headaches of sitting in a dealership for hours on end and haggling with pushy sales reps. With our robust dealer network, we’re able to get wholesale pricing and guarantee the most competitive lease or purchase price on any new vehicle.
Copyright © 2022 The Vantage Group NJ LLC. All Rights Reserved. | Site Designed By Plutus Media