How Does The Length Of Your Car Loan Impact How Much You Pay?

You may be surprised to learn that the longer your auto loan term, the more you pay. It makes sense when you boil it down. The lender wants to receive their money back as quickly as they can, and this means they want you to borrow only for the length of time that is absolutely necessary to pay them back.

Auto loans today have expanded from a traditional 60-month loan up into loans of 72 to 84 months. That means that those who borrow on those longer terms could end up paying a lot more money for them than they ever did in the past.

It is vital that every borrower take the time to go over their loan terms and determine what kind of loans makes sense for their particular circumstances. Once the papers are signed and the deed is done then it is all over. Make sure you know what you are agreeing to.

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