Quote:
Originally Posted by tomato coupe
There's nothing special about 48 months that makes it the longest term that's compatible with the car being affordable. It's an arbitrary number.
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1. I never said anything about 48 months..
2. certainly a 48, 60, 72, or 84 month loan is a number that is not tied to an absolute, they are typical loan terms from pretty much any institution..
As Mark said above, the proliferation of longer terms for a loan allows many (not all) folks to purchase a car (or RV, boat, or ??) they probably shouldn't able too based on a payment they get the salesperson to get them.. the banks love it because they get more interest, the dealers love it (if they finance with one of the options they have) because they make a certain percent on top of what the loan institution gets.. what is one of the first things a car salesperson asks you when they meet you? "what kind of payment are you looking for?" it's not a coincidence that happens at EVERY dealer..
again, if you need 72 or 84 months to pay a vehicle off, you probably spending out of your means.. same as if you HAVE to buy a bike on credit (those that use a CC for points or pay it off before interest accrues excluded)..
I mean, this is just money management 101..