Longer Auto Loans Could Lead You Down The Wrong Road - WSPA.com

Longer Auto Loans Could Lead You Down The Wrong Road

Posted: Updated:

7 years ago George Bush was president, no one had heard of the housing bubble, and Julia Caron and her husband were just buying this brand new Dodge Truck.

Today a lot has changed, but not for the Carons.

"I'm feeling like it really needs to be paid off by now because we're still paying," said Caron.

What was a staple before the economy tanked is making a come back, long car loans. And Caron warns think twice before it comes back to haunt you.

We did the math and found out over the last 6 years she's paid 12,000 in interest alone. That brought the $40,000 truck to $52,000.

We asked if she went in with a budget.

"Not really, we went in there more for the payments, how much it would be a month and what all he wanted in the truck," she said.

Not mapping out the total long term cost is a common mistake according to Josh with SC Telco Federal Credit Union.

He said for people who opt to get the longer loan without the plan to pay it off early may be over-extending themselves.

"I think some of the best evidence that you can't afford the car, is when you have to trade it in with negative equity," he said.

Besides going for a cheaper car, shopping around for rates is key. And experts say Credit Unions often offer the best ones around.

Another thing to remember is If a dealership offers you either a low rate or a rebate you can save money by taking the rebate and finding the low rate elsewhere.

The next 10 months will cost the Carons another 6000 in payments. But after that, this Greenville woman is putting on the breaks.

"My husband got what he wanted but he's probably never going to get a new truck again."

Powered by WorldNow

250 International Dr.
Spartanburg, S.C. 29303

Telephone: 864.576.7777
Fax: 864.587.5430
Email: webmaster@wspa.com

Can't find something?
Powered by WorldNow
All content © Copyright 2000 - 2014 Media General Communications Holdings, LLC. A Media General Company.