Short Term Auto Loans | FAIRWINDS Credit Union

There’s a reason most dealerships ask you,
“how much payment can you afford?” And not, “how much do you want to spend?” Because if you stretch your loan term out
longer, they can sell you a more expensive car. Is that really in YOUR best interest or theirs? A 72-month loan is two extra years of payments
than a 48-month loan. And, during those two years, you’ll pay around
$1,400 more in interest charges on a $20,000 loan. Once you payoff your 48-month loan, continue
to pay yourself that payment into a savings account. Over two years, you’ll have approximately
$11,000 saved up for your next car. Using that $11,000, plus the value of your trade-in,
you may be able to pay cash for your NEXT car. And that’s what financial freedom feels like! Want a little tip? Watch out for 0% interest specials. You may be surprised how taking the dealer
incentives with a shorter-term loan can actually save you money. We recommend buying your car with the money
you’ve saved. But, if you need to finance your next car,
keep your loan term to 48-months or less and you’ll be able to achieve financial freedom
much quicker.

Leave a Reply

Your email address will not be published. Required fields are marked *