New vehicle financing

[the game]

So I'm currently shopping for a new jeep to replace the one I have. It's been a while since I've bought a new vehicle and I'm considering financing options. I've been reading lately that there are now banks doing 10 year loans for new vehicles. I can certainly see the pros and cons for this and I'm curious if you guys know anyone that's done this?

[TITAN308]

There is no pro to 10 year financing and certainly not on something as quirky as a jeep.

You should buy a car based on the price you pay, not how small you can get your monthly payment.

Car buying 101.

Even a $25,000 car @ a super low rate of 3% over 10 years comes out to really being $29,000.

Now if your credit can't even get you that low of a rate the problem just gets worse.

Edit: If you really want to see how your interest rate plus loan term is fucking you over use:

http://www.bankrate.com/calculators/...lculator.aspx?

[Captain N]

10 years is a long time to be paying off a car and that's not including having to carry full coverage insurance on it while it's being financed.

If you can't pay for a car in 6 years....Maybe you're looking at buying the wrong type of car.

[Darsithis]

If you can't pay for a car in 6 years....Maybe you're looking at buying the wrong type of car.

I'd say 3 years or less. If you can't pay it off in 3 years or less, you're financing way out of your income range.

OP: 10 years is way too long. If you're already having to choose 10 years, you're not getting a low rate. I'd bet you're getting 8 - 15% on that 10 year loan, which could mean paying nearly double by the time you're done.

[Theinquisition]

10 years is a bad idea.

Do you have access to a credit union?

Also, many insurance companies also offer financing, if you've been with yours for a bit, they may offer low rates, give your agent a call.

[TITAN308]

I'd say 3 years or less. If you can't pay it off in 3 years or less, you're financing way out of your income range.

OP: 10 years is way too long. If you're already having to choose 10 years, you're not getting a low rate. I'd bet you're getting 8 - 15% on that 10 year loan, which could mean paying nearly double by the time you're done.

Was about to post this...

6 years? No way... 3 years at most.

Anything more than 5 is just insanity.

[Ghâzh]

Kind of depends. If you don't buy new and you will be selling the car in a year or two it's not so bad (especially with certain models that hold the price). If you are looking to buy a new car however, and planning to keep it, it's like throwing money away. Rather just buy something cheaper.