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Longer
Terms for Car Loans
With the
housing market the way it is, it was only
a matter of time before the auto loan
market followed. However, one thing that
the auto loan industry is doing that it
does not seem that the mortgage industry
is doing is working with their clients to
actively change the terms of their auto
loans.
Let’s say that you have an auto loan for
four years and are having a hard time
making the payment. You can refinance your
car loan and spread it out longer – five
years, even up to 80 months! That is a
long time to be paying on a car loan, but
in some cases if the choice is losing the
car or paying for it longer, there really
isn’t too much of a choice to be made.
According to JD Power and Associates, most
auto loan financiers are now offering up
to 108 month auto loans for their clients.
They say that there aren’t a lot of people
that have the loans this long, but it
drastically reduces the amount of their
payments so they can afford to keep their
car.
They say that although you could end up
paying on a car loan that is nine years
long, and the car that you are driving
will hopefully still be running – if there
is a choice between the lesser of two
evils, keeping the car will usually win
out. Mortgage companies might want to
start looking at 60 year loans – then
perhaps they would be able to give back
some of the homes they have had to
foreclose on.
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March 2008
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