Yeah, that's one word for it. I've got several others, but I'll save them.
This is part of a trend we've seen for some time, with new-car buyers moving towards longer and longer re-payment terms. In fact, the average auto loan is now 64 months. Makes me laugh to think of the quaint days when re-paying a loan in 36 months was the standard.
All of this has to do with buyers wanting the lowest possible auto loan payment every month. I can't blame them for that. But are people actually thinking this through when they sign up today for a loan they could conceivably be paying it off in 2017?
Even more of a concern is whether or not these people will be "upside down" on their auto loan if they try to trade out for a newer model in a few years. Believe me, it will happen.
Anybody out there in the market for a 10-year auto loan?
Source: CNBC March 5. 2008
http://www.cnbc.com/id/23483123







