What Should Be The Term Of Your Car Finance?

More and more automobile companies and lenders are here in the market to leverage longer financial terms, but it is always a good idea to commit over an eight year loan term.

It is a good idea to make a budget plan and assess your financial situation before you think to plunge into action. Buying a car after setting your budget is not so easy that is the reason most of the new buyers tend to focus on the cars monthly payments. However, lower monthly payments might lead you into the trap of having a longer loan and ultimately it forces you to make more monthly payments.

Even if you avail cheap auto loan and the longer term will make you pay more interest on the loan amount.

Looking at the facts and the figures of the tabulation, 2013 Nissan Altima SV has a MSRP of $24,870 and Nissan offers 0% financing up to five years. So financing a car for at least three years making a down payment of $3000 will ask you to make monthly payments of about $608 per month. Compared to that a 75 month loan from Nissanthat comes with a 4.59% finance rate will ask you to pay $336 month, thatseems attractive, but at the end you pay more than your due amount.