Auto Loan Term Length - What Difference It Makes?
Average auto loan rates in the United States have come down quite drastically. The situation is even better in San Francisco which is currently ranked 53rd related to offering lowest auto loan rates in US. This is indeed good news for buyers who are planning to go for a new car. Those who were pondering over whether to opt for a second automobile for business or commercial purposes are also glad with the changing scenario.
With this boost in the automotive finance sector, many service providers have come up based at S F bay area; their sole aim being arrange easy and cost effective automobile finance for buyers, irrespective of their credit history. So, if you have been eyeing that SUV or Toyota Corolla and thinking of applying for a car loan since long then the time is now to crack the best deal. The only word of caution is, take an informed decision after weighing every pros and cons. One big issue to be settled in this regard is loan tenure.
The standard term for car loans is three to five years. However, loan tenures are creeping up for some time. Such extended terms are further supported by the fact that cars come with advanced features and better warranty terms. These guarantee longer life for the automobile. Besides, automakers are using this as a marketing strategy too. They are aggressively promoting extended loan terms and encouraging buyers to move up to expensive car models which were otherwise beyond their reach. Sometimes the strategy works as clients get attracted towards fancy and costlier vehicles. Take for instance a buyer who is prepared with a budget to purchase the Toyota Corolla. Now that loan rates are slashed, he might be wondering whether to opt for a Camry.
Auto loan experts sound alarm in this regard. They feel that longer loans work only because interest rates have reached rock bottom. However, loans with extended terms can prove to be troublesome for those who are already in the soup with tarnished credit record. They may not qualify for the best deal. Besides, they might find it difficult to fulfill a long term liability. Again those who keep falling for brand new car models and have this habit of changing vehicle every 3-5 years should also stay away from long term loans. On the other hand, buyers, who are really confident about their sound credit records and can resist flashy new car models, surely benefit from loans with extended terms. With this option they can keep on reducing car payments and at the same time divert the extra fund to alternate investment options which ensure better returns. Many use the fund to meet other priorities.
It is never advisable to get entangled in a financial quagmire just because you couldnâEUR(TM)t resist the temptation of owning that pricey brand new car! Decide a budget and stick to it. If not sure what kind of financing options will be best for you then talk to an expert who has detailed know-how in this regard. Look for the one who is transparent in his dealings, understands clientsâEUR(TM) requirements and suggests the best deal accordingly.
With this boost in the automotive finance sector, many service providers have come up based at S F bay area; their sole aim being arrange easy and cost effective automobile finance for buyers, irrespective of their credit history. So, if you have been eyeing that SUV or Toyota Corolla and thinking of applying for a car loan since long then the time is now to crack the best deal. The only word of caution is, take an informed decision after weighing every pros and cons. One big issue to be settled in this regard is loan tenure.
The standard term for car loans is three to five years. However, loan tenures are creeping up for some time. Such extended terms are further supported by the fact that cars come with advanced features and better warranty terms. These guarantee longer life for the automobile. Besides, automakers are using this as a marketing strategy too. They are aggressively promoting extended loan terms and encouraging buyers to move up to expensive car models which were otherwise beyond their reach. Sometimes the strategy works as clients get attracted towards fancy and costlier vehicles. Take for instance a buyer who is prepared with a budget to purchase the Toyota Corolla. Now that loan rates are slashed, he might be wondering whether to opt for a Camry.
Auto loan experts sound alarm in this regard. They feel that longer loans work only because interest rates have reached rock bottom. However, loans with extended terms can prove to be troublesome for those who are already in the soup with tarnished credit record. They may not qualify for the best deal. Besides, they might find it difficult to fulfill a long term liability. Again those who keep falling for brand new car models and have this habit of changing vehicle every 3-5 years should also stay away from long term loans. On the other hand, buyers, who are really confident about their sound credit records and can resist flashy new car models, surely benefit from loans with extended terms. With this option they can keep on reducing car payments and at the same time divert the extra fund to alternate investment options which ensure better returns. Many use the fund to meet other priorities.
It is never advisable to get entangled in a financial quagmire just because you couldnâEUR(TM)t resist the temptation of owning that pricey brand new car! Decide a budget and stick to it. If not sure what kind of financing options will be best for you then talk to an expert who has detailed know-how in this regard. Look for the one who is transparent in his dealings, understands clientsâEUR(TM) requirements and suggests the best deal accordingly.
