Are Long Term Car Loans Worth it?

144 month auto loans with exceptionally long terms one of the fastest growing trends in finance for the auto market. For you, these have a natural draw from the low monthly payments, but can actually be vastly detrimental to your long term financial sustainability. However, unless you honestly think you will be driving the exact same car in 2023, is it really a wise decision to spend like you are?

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The Wall Street Journal Market Watch ran the numbers in their column earlier this month. As we can see, these costs become more and more steep with longer term loans, which is alarming when the average car loan these days is 65 months.

This is a record high for the automotive loan industry as of the fourth 2012 quarter. Automotive News discusses what these loans mean for the lenders and the borrowers, saying that these long term car loans are double-edged, so to speak. For a borrower, it means trading lower monthly costs for higher interest rates. It also means that if the borrower (you) decides to sell or trade in your car you have to pay a higher amounts to close your account.

To the bank this means that they have to worry about you selling or trading up a bit more closely. The Automotive News article also showed a trend towards increase of costs and interest rate, and can be found in automotive news.

What does this mean for you?

It means to pay attention to the math. Long term loans are fine, if you plan to keep your car for the entire duration. If you plug in some of the loans out there into a calculator, you might get something like for a 60 month loan, monthly payments would be around $500, while for a 72 month loan they would be $420, but by the end the 72 month would cost an additional $605 almost just in additional interest costs, presuming respectable credit scores.trading up a bit more closely. 

If we keep climbing the loan length ladder, the more you add to the end of your costs. For instance, if you look at 96 months (8 years) you see that the monthly rates hit $353, but the cost interest at the end is a stunning $6000 in addition to the cost of the vehicle. That’s a lot of extra money for a car that you might not be planning on driving at the end of all this. Much of these numbers are before even fuel, maintenance, and repair or insurance costs.

Perhaps that money would be better put into your savings account?

Six Lesser-Known Facts About Buying an RV or Recreational Vehicle

Getting an RV is a big decision and should be taken after careful consideration of various aspects of your life. If you lack the basic knowledge about getting an RV, it can be highly problematic for you. Knowing the right tricks to getting the best RV is the way to do it, and here are some of the ways you can do “Buying an RV” in a right way. RV Sales Seattle

No RV is Cheap:

Do not get fooled by people who try to sell you cheaply priced coaches as they can turn out to be faulty. In case of an RV, if it seems too good to be true, it certainly is a deception. You might get that RV at a fair price, but the maintenance expenses that follow might put a dent in your wallet.

Make Arrangements For Storage:

Unless you have a big property, storing an RV can be a tiring job. Before you get yourself an RV, prioritize finding or making a parking space for it first.

Safety:

Just like any other vehicle, RVs to require some safety measurements to be taken care of. Before you buy an RV, make sure that it has safety protocols for fire hazards, airbags for the driver in case of accidents, and so on. Make sure the material used to construct the vehicle is of good quality as this vehicle is your second home when you are on the road.

Guide To Buying An RV

Recreational Vehicle is a broad term used to define a motor vehicle or big trailer which has been modified in the form of a moving house filled with usual household amenities like living space, water connection, and kitchen and so on. Long family vacation to far off places can be tiring and cover the whole journey in a car takes out the fun from vacations. Having an RV provides you home like surrounding while moving on the road. So if you are looking for an RV, here are few pointers you should know first.

Ask Yourself These Questions:

  1. Why do you require an RV?
  2. Is it for you or someone else?
  3. Where have you planned to travel by the RV?
  4. What are your features based requirements?

It is important that you jot down the answers to every question stated above. These answers will be your guide to get that perfect RV for you, your family and friends.

Type of RV:

Well, there are two types of RVs which are Motorhomes and towables. Motorhomes are the RVs that have an engine attached to them, kind of like a big bus which has rooms. As opposed to Motorhomes, towables lack engines and require to be towed by a separate vehicle and hence costs less as compared to motorhomes.

Financing your RV:

Once you have locked-in on the type of RV which suits your requirement, it’s time to arrange the proper finance for the same. Paying up for an RV often requires vehicle loan as they are costly. Do not acquire the money from shady organizations. Follow proper paperwork and take only the required amount depending upon your budget.