Quote:
Originally Posted by '10CamaroDude
I said nothing about interest, down payment, monthly payment, I don't care. I would
never go seven years. I went four on my used 2010. Seven years is a no go for me
on any level. You're making a sales pitch where none was required, I don't care...
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For the average person: Agree. 7 years, the entire loan you're upside down. If you can't finance the vehicle comfortably in 3 years, its too expensive of a vehicle.
For that rare person who has plenty of cash but finances at a low APR PURELY to facilitate leaving their cash in other investments: Any term is fine and the lower your payments the better.
But for 9 out of every 10 times that second one is thrown around on the interwebs, its just an excuse. The vast majority of people financing over 5+ years are doing so because they can't afford the higher payments of a 3 or 4 year loan.
As a rule of thumb, your car's out the door price should be no more than 1/3rd your gross annual income, 1/4 is far better.