Is a 5 year car loan too long Reddit?

Car loans should never exceed four years. I don’t care about the length of the loan, so long as the price and interest rate are right.

Is a 5 year auto loan too long?

But a five-year loan often has a monthly payment that is too high for them, and they end up financing for a longer term even if it costs them more down the line, Zabritski said. … In fact, there are many reasons why you shouldn’t choose a long car loan. Edmunds recommends a 60-month auto loan if you can manage it.

How long is too long for a car loan?

Auto dealers have an answer when the monthly payment on your dream car exceeds what you think you can afford: a longer loan. You plan for 60 months, but the dealer recommends you extend the auto loan to 72 months, maybe even 84.

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Why should you avoid car loans longer than 5 years?

You’ll Pay More Interest

Long-term car loans typically carry higher interest rates than shorter-term loans. And even if you can find a long-term loan with a low interest rate, making payments for seven or eight years will likely add up to more interest over time compared with a shorter-term loan.

Is it OK to finance a car for 72 months?

Generally, yes, a 72 month car loan is bad. When you get a 72 month car loan, you’re more likely to go upside down on your car loan, which leaves you in a vulnerable financial position. Avoid getting a 72 month car loan if you can. This might mean getting a cheaper car than you hoped for.

How old of a car can I finance for 84 months?

Generally, the longest loan term you’ll find is seven years, or 84 months. There are, however, some lenders that will extend used car financing to 92 or 96 months, or up to eight years. In 2018, 55% of new car loans originated were for 84 months.

Is 6 years too long to finance a car?

There’s really only one benefit of a long-term auto loan that spans six to seven years or even longer. The longer the car loan, the smaller the monthly payment. By taking out financing with an extended loan term, you can potentially buy a more expensive car and still stay within your monthly budget.

Is 7 years too long for a car loan?

Stretching your loan term to seven or even 10 years is probably too long for an auto loan because of the interest charges that stack up with a higher interest rate. … If you make every scheduled payment over those seven years, you pay over $5,200 in interest charges.

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Can you get a car loan for 10 years?

Some lenders and credit unions, however, offer extended loan terms of anywhere from 96 months (eight years) to 120 months (10 years). Although the lower monthly payment may seem attractive, a decade-long auto loan could leave you paying for a vehicle that’s worth very little 10 years from now.

How long is a car loan term Reddit?

Car loans should never exceed four years.

How long does it take to pay off $30000?

The average credit card interest rate in 2021 was 16.13%. With 16% interest, it would take 447 months (more than 37 years) to pay off $30,000 in credit card debt.

How old of a car can I finance for 60 months?

Typically, a bank won’t finance any vehicle older than 10 years, even if you have good credit.

What is a high car payment?

According to experts, a car payment is too high if the car payment is more than 30% of your total income. Remember, the car payment isn’t your only car expense! Make sure to consider fuel and maintenance expenses. Make sure your car payment does not exceed 15%-20% of your total income.

Is 84-month 0% financing a good idea?

If your goal is to make a vehicle fit within your monthly budget, 84-month financing could be a compelling option. … Since vehicles lose value over time, some consumers may find that they may owe more than the vehicle is worth. If your circumstances change, negative equity can even impact the cost of your next purchase.

What APR is too high for a car?

The lower your APR, the better, but you won’t be able to get a really low APR without good credit. Anything over 10% APR on a car loan is pretty high.

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How much is a payment on a 30000 car?

A $30,000 car, roughly $600 a month.