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If your financial problems have reached the point where you do not see a way out and you feel as though you are drowning in debt, your best way out is through declaring bankruptcy. Filing may well allow you to get your finances back on track Thankfully, there are now several web sites that are there to help people like you with bad credit to find the fast personal loans that you need. When you have bad credit, the first thing that you should be looking for is a loan company that
Cars and car loans have become equivalent. If you want to buy a new car, an auto loan has become a complete necessity. With growing need of auto financing and increasing competition in the car loans market, lenders are constantly trying to innovate. Past several years have seen pioneering ideas like no money down auto loans and no co-signer car loans. This year has been no different in terms of innovation because lenders have brought highly unconventional 8 Year Loan Terms.Auto lenders have become increasingly enthusiastic in offering car loans with unexpectedly longer terms. Experian Automotive March 2013 report divulged information about the average loan terms. The average terms have increased to an all-time high of 65 months. And, now the experts are predicting that 96 month loan term will become popular.Why are Loan Terms becoming longer?The report also disclosed the rise in new car loan amount. The average new auto loan amount for Q4 2012 has increased by $272. This shows that car prices are rising steadily which makes it difficult to buy a new car. But, if the new car sales dip, it would affect the automobile industry. So, lenders have started offering longer terms to help Americans fulfill their new car dream.Also, there is a growing appetite of consumers for car loans. The current economic period is better compared to the recessionary years. Credit borrowers have performed exceptionally well in making regular payments. This allows the lenders to have faith in car buyers.Benefits of Longer Car Loan TermsBuying your Dream CarIt is not possible for everyone to buy a new car because of high monthly payments. But, longer terms ensure affordability. This gives you the opportunity of buying any car you want.Lower PaymentsIf you opt for shorter term, you have to deal with high payments. But, longer loan terms allow you to lower your monthly payments. This means you will experience considerable ease in making payments. An example will make things clear. If you buy a car for $35,000 at 4% for 4 years, monthly payments will be $790.27. And, if you extend the term to 8 years, payments will be approximately $426.62.Regular Payments can improve your Credit ScoreA 7-8 year loan term is a big responsibility. If you are able to make regular payments, your credit score will definitely increase. It will also show other lenders of your commitment and financial capacity.Problems with Extended Loan TermsPay More towards InterestLonger loan terms give you flexibility by offering affordable payments. But, you have to pay a price for it. Over the entire term, your total interest amount will be on the higher side. Lets use the same example of $35,000 car at 4% for 4 years and calculate your total payment towards interest. It will be $2,932.81. And, if you opt for 8 year loan term, it will be $5,955.97. This means you will have to pay $3023.16 more.Higher Chances of Upside DownA car is a negative asset because its value decreases over the period of time. The depreciation rate of a new car is phenomenal which means there are higher chances of an upside loan. If such a car is stolen or is involved in an accident, the insurance amount wont cover your loan amount. This will be detrimental to your financial condition.Maintaining your CarIf your car has warranty, your maintenance cost will be low. But, when you opt for 8 year loan term, your car will not have any warranty in the last few years. This is because most new automobiles come with warranty of 3-5 years.So, your maintenance cost will increase in the future.Every innovation has its pros and cons. And, its importance is going to be different for every individual. So, think through and decide whether 8 Year Loan Term is a stunning opportunity for you.Best of luck in choosing the best auto loan term!!!
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