Do you prefer driving a car the first 7 years of its life or the last 7 years of its life? (Interestingly, if you buy the wrong car the first 7 years may also be the last 7 years).
Financing a new car for a longer term can lower your payments substantially and often times be a better option than leasing.
There is some added risk for you may be “upside down in your car” for a longer period. (Of course, being upside down in a car is owing more than its worth. This limits your options for trading in your car). On the other hand, you may be able to afford a newer and more expensive car.
| Time to Buy Your Dream Car? | ||||
| Term | Interest Rate | Payment on | Payment on | Payment on |
| $30,000 | $40,000 | $50,000 | ||
| 5 years | 2.49% | $532.29 | $709.72 | $887.15 |
| 6 years | 3.09% | $457.02 | $609.36 | $761.70 |
| 7 years | 3.75% | $406.62 | $542.16 | $677.70 |
| 8 years | 4.25% | $369.18 | $492.24 | $615.30 |
If you prefer buying a new car so you don’t have to worry about how someone took care of your car, consider buying “new” but plan on driving the car for a longer term. If this is your preference, you can finance it for up to 8 years and lower your payments. Talk to a loan officer today to discuss the best options for you.
