Los Angeles, CA (PRWEB) July 30, 2013
On July 11, 2013, Jerry Hirsh of the L.A. Times published an article that outlined the growing trend for automobile buyers to opt for a long-term loan in exchange for a lower monthly payment. In response, Finance Acceleration offers potential car buyers some financial help: be wary of long-term loans and the amount of interest accrued, as consumers will pay much more over time for the same product.
The term of car loans has been increasing, and car buyers can now expect to be offered a term of as long as 96 months for the same agreement that used to be offered at only 48 months. What that means is that consumers are reducing their monthly payments in exchange for a longer commitment and increased fees from interest.
Some car buyers are utilizing monthly payments as an opportunity to strengthen other areas as part of comprehensive financial planning. Instead of paying money to a car company, individuals are able to start saving or investing money. Others, however, are taking the opportunity to purchase an automobile that they may not be able to afford now, but can with extended payments.
The extended terms are great for lowering the monthly payment, but ultimately leave car buyers paying more money for the same car. In response, Finance Acceleration urges car buyers to steer clear of long-term loans. With a greater amount of accrued interest, car buyers will likely find themselves in financial strain down the line.
There is a growing trend among car buyers to stretch loans into a longer term payment method in exchange for lower monthly payments. Over time this means that the consumer pays more for the same product. As a result, Finance Acceleration warns against long-term loans for automobiles and instead suggests making a purchase within a buyer's financial means.
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As young couples begin their lives together, Finance Acceleration helps them achieve their financial goals by increasing net worth in the shortest timeframe possible.
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