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What is the maximum amount of time for which you can take out a car loan?


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2015-07-17 17:41:49
2015-07-17 17:41:49

It used to be 60 months, but there are now banks / car lots writing 72 and even 80 month car loan notes.

On a new car, do not finance for more than 5 years... If you do, most likely you'll be out of warranty. What if the engine dies at 61 months and it'll cost $3000 to replace it, but the book value on the car is only $2000 and you still owe $3300? Sounds like a pretty crappy situation!

Normally, once you get past 5 years, the payments don't go down enough to make it really worth it anyway.

On a used car, never do more than 24 months (unless it's certified, then MAYBE 36).

These new 66 and 72 month loans are popular because they allow a buyer to get a fully-loaded car instead of the base model, but they are stuck with the car for a long time and there is a good chance you'll have problems.

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