Long car loan problems
June 7, 2018
I’m Miriam Neff-with STARTING OVER FINANCIALLY,-and I’m Valerie Neff Hogan, and we’re here to talk about money
M Long car loans are a lenders dream. A five year loan on a used car sounds like a small monthly outlay. But it will feel like forever. Besides more money in the lenders pocket, that time frame may include job loss, health problems, and falling behind on payments.
V Remember that every year of that long loan is a year where your payment remains the same, but the value of your car goes down. At the same point, you’ll want to offload that vehicle, but will get less for it than the remainder of the loan, and still be obligated to pay that monthly fee.
M We can’t stress enough, defer buying, save and next time pay cash if you can.