A couple of years ago, Laura Hart had been through a divorce, her car was 11 years old, and she wanted a new vehicle. “Almost, ‘I earned it,’ really” is how Hart says she felt at the time.
She’d been through a tough experience “while maintaining a full-time job and raising two kids and things like that, so when I got to the point where I felt comfortable to take on a car loan again, I was fairly proud and ready to do that.”
Hart is a grade school principal in Clovis, Calif. And having kids, she wanted better safety features. She decided on a new Jeep Cherokee.
She spent almost exactly what Americans are spending on new cars on average these days — $37,782, according to the car-buying site Edmunds. Americans are buying bigger, pricier cars with more options. And one thing driving this trend is dealers offering car loans with seven-year terms.
A seven-year car loan means lower monthly payments than a three- or five-year loan. That sounded good to Hart. And she’s not alone. A third of all new car loans now have terms longer than six years, according to the credit reporting company Experian. That’s more than three times as big a share of the loan market as a decade ago.
Read the rest here: https://www.npr.org/2019/10/31/773409100/the-7-year-car-loan-watch-your-wallet
PAY 7 YEARS FOR SOMETHING YOU CANT OWN?
DONT BELIEVE ME?
REFUSE TO BUY A TAG. SEE HOW FAR YOU GET…………..
I told the pig I was in pursuit of happiness and he was standing in my lawful way
Shoulda seen the blank stare
Yeah I got a ticket
Lol
It was still worth it
I bet his feeble little mind still thinks about that encounter… doesn’t it Jack ?
Problem is she will never keep the thing the full seven years, she’ll trade it in and take a beating again. She should have bought used. New she adds on another 10 grand or so to the already high price which had risen by 18% from last year.
Autos are a rip off.
Housing is even worse…because you can borrow against equity and eventually loose your house. She might want to think about taking a second against her house to pay off the Jeep Cherokee.
She will save a bloody fortune, with a hell of a lot lower interest.
Buying new is insane.
get rid of the jusry
wouldn’t be a bad thing if jusry wasn’t involved
You got that right Mary..
and stay away from the 100 year mortgage
I’d be unable to sign a loan for $37.000 bucks. I’d just be shaking so hard I couldn’t do it. Insanity.
Not only is here car loan typical – so is her divorce.
‘No one ever went broke underestimating the intelligence of the American public’ ~ Mencken
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