This is a car buying tip that I cannot stress more--do not finance your car over 60 months. The going trend is 72 month financing, which charges you an enormous amount of extra interest not to mention the car will ALWAYS be worth less than you owe on this plan. The car will depreciate at faster rate than you pay it off, hence the term "Up Side Down."
There are even those finance companies that finance for 84 and 96 months. Do not fall for this extended term finance option. If you cannot handle the payment on a 60 month loan, DO NOT buy the car. It is very simple, we buy cars that we cannot afford. Pick a vehicle that you can afford! There are some very smart money guru's that say, if you cannot pay cash for the car, do not buy. I say, pay for the car in a short amount of time.
You would be surprised if you look at the difference in finance charges on 72 months compared to 60 months. You will save thousands by going 60 months and many are opting for 48 months. Just remember, do not make it emotional or keeping up with the jones's. Buy a car you can afford.
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