Pay Now or Pay Later; New Long Term Loan Options Allow Consumers to Buy More Car for the Money
I just bought a new laptop computer on payments; the less painful way, at least initially. While ordering it online a 48 month payment plan was highlighted, with other 'less optimal' 36 and 24 month plans available.
 |
| Certain U.S. lenders are offering something new to automotive consumers hoping to curb monthly expenditures, a 96-month term. (Photo: Shawn Pisio, Canadian Auto Press) |
Being one who hates paying interest I opted for the shortest term, increasing my monthly payment but decreasing the total outlay. I just couldn't get my head around continuing to pay for something that was not only off warranty, but hopelessly archaic - what my state of the art 3.06 MHz hyper-threading laptop will be in 4 years.
 |
| It's come to the point where it's possible to finance a car for a length where monthly repair costs could eclipse the monthly payment. (Photo: Trevor Hofmann, Canadian Auto Press) |
As it seems, the philosophy I've adopted of paying more now for less pain later isn't too popular. While "don't pay until next year" furniture stores are all but passé, lifetime mortgages that you can pass on to your kids are starting to crop up in various jurisdictions, a scary concept that can only make the banks richer.
What about car loans? Certain U.S. lenders are offering something new to consumers hoping to curb monthly expenditures, a 96-month term. What? You heard it right. In a market with only one brand that offers warranties past eight years you can finance a car to the point where monthly repair costs could eclipse the monthly payment.