Longest Car Loan Ever is 97 Months, Should You Go for It or Not?
What’s the longest car loan? Some of you may think 60 and 72 months are the longest loan one can take to finance a car. Well, there is a car loan taking 97 months to finish the credit – and that’s the longest one ever recorded – although quite uncommon. Do you think that will benefit you? Hold a second, don’t answer it directly. What’s good by taking the loan is: you can get home by car, going out from the town with your loved ones, and your garage will not be that one only full of unused stuffs. But, what’s hiding behind can be scarier than you ever think.
To get insight about what can happen if you take that longest car loan, here’s the summary.
Long term loan, are you sure?
97 months – that means 8 years. Are you sure you can keep the car for that long without wanting to change the vehicle?
Think about the car’s economic value
The down payment may not different, and the monthly installment will be less expensive. But do you think it is worth it to keep paying for a stuff that degrades over time? A new car usually has lower price by 25% after the first-year usage. Think of that if you have to pay constantly for long time. The negative equity will work in the vehicle. The money will be in a better place that you invest it for a real estate.
That’ll be much more expensive
Please do the count. With such monthly installment, compare the amount you have to pay if you take that longest new car loan (or 60, 72, 84 – whatever you take). Surely that’s a lot higher than the price offered for a full cash purchase.
More money to spend
Don’t forget that you have to think about the car’s maintenance to keep it working well. That means other additional bucks to spend, right? Sometimes the lender even wants you to have car insurance to protect the lender’s investment. In case of no insurance and there’s a damage occurred to your car, that means you’ll pay for the repair fee yourself.
Well, taking a loan to finance your car isn’t bad. But before taking it too seriously, it’s always better to rethink about it many times. You can use those aforementioned points to do reconsideration. The best way to buy cars is to pay if with full cash – or having the shortest loan instead of that longest car loan.