of the length of the average car loan depends on the duration of the loan. According buyingadvise.com, 45 percent of Americans are financing the car for 5 years. This means you will pay 60 payments on the average car loan.
Furthermore, buyingadvise.com states that the average American gets a new car every 5.5 years. Use these statistics to calculate that, most Americans just go without a car, pay for 6 months every 6 godina.Razlog that most people do is to stretch out the loan as monthly payments smaller car.
When you buy a car, car buyers should take into account the total amount paid for the car compared to monthly payments alone. This could save a lot of money over the life of the loan.
You shop and work with the amount of the payments can be made during the term of your loan. There are conditions anywhere from 12 months to 84 months. It is a wise decision to do your homework before going to the dealership to buy your next automobil.Kraći can loan more quickly you can pay your car that will save you interest and gives you several months without a car payment.
Fortunately, there are many sites out there that contain a computer for you to figure the difference between the 36-month and 60-month loan term. Go and Google "auto loan calculator" and find a website with a calculator to figure your monthly payment for you. All you need to do is put in the numbers.
Let me show you an example that demonstrates this difference. If you take a loan for a new car for $ 21,325.00 making 36 payments (3 years) and paying 5 percent interest you will pay $ 639.13 a month and pay $ 1,683.66 in interest. Using the same amount of $ 21,325.00 at 5 percent interest for 60 payments (5 years), you would pay $ 402.43 a month and pay $ 2,820.74 in interest. You end up paying $ 1,137.08 more in interest because the long term.
Therefore, in this example can be seen that although the monthly payment May be higher for short-term auto loans compared to the average car loan within 60 months, you'll pay more in interest over the life of the loan. Yes, it will cost you more per month for your car, but the savings may be worth the extra payments each month. If you are looking at a car that you need finance for more than 60 months just to be able to afford a car payment, and then look for a cheaper car that suits your budget
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next pit falls for the more loan has to do with the car depreciation. If the average car loan finance from 60 -72 months, risking the possibility that it will be upside down on a car loan when you go to trade the car in. Being upside down when they owe more on the status of the loan than the car is worth the value. This happens because the car is depreciating faster than they are paying him a long term loan.