- First Name
- Dan
- Joined
- Jul 19, 2020
- Threads
- 3
- Messages
- 225
- Reaction score
- 841
- Location
- Seattle, WA
- Vehicle(s)
- Outback
- Your Bronco Model
- Badlands
I think people tend to over exaggerate long term loans. On a 45k vehicle and a 60 month 3% loan you pay $3500 in interest. Same vehicle but 4% loan over 72 months you pay $2000 more.
it’s not nothing but it’s not OMG you can’t afford this vehicle! As long as you’re going to keep it for longer than the loan term and you’re ok with the extra interest it’s fine. Especially on a new vehicle. Interest rates are so low you can make more in the market anyways.
People also forget to mention that the average interest rate on cars used to be 10-15%. With a rate that high you would want the shortest term possible.
it’s not nothing but it’s not OMG you can’t afford this vehicle! As long as you’re going to keep it for longer than the loan term and you’re ok with the extra interest it’s fine. Especially on a new vehicle. Interest rates are so low you can make more in the market anyways.
People also forget to mention that the average interest rate on cars used to be 10-15%. With a rate that high you would want the shortest term possible.
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