Blog

Is a Long-Term Car Loan a Good Idea?

Is a Long-Term Car Loan a Good Idea?
 
Nowadays, families are willing to take a longer car loan for their vehicle, sometimes financing it over 7-8 years. While this line of thinking is beneficial for some, it is not right for everyone, so read ahead to find out whether a long-term loan is appropriate for you.
 
If you’re an individual with a good credit rating, taking on a longer loan poses a much smaller risk than someone who has a poor one. If interest rates suddenly rise during the life of your loan, you will have to be confident that you will be able to pay everything back. If you don’t think you can afford a little extra, it would most likely be better of getting a shorter-term loan.
 
It is clear that financing through a longer loan will cost you more money in interest over the long-run. However, if you are keen on upgrading your vehicle but wouldn’t be able to so without a longer loan, than lengthening the life of your financing is a good idea. If the vehicle is more practical for your whole family and you can afford an extended loan, it is logical that you purchase the better option.