Car Buying Tip - Car Owners Owe More Than Car Is Worth
ABC News: Many Car Owners Owe More Than Car Is Worth: "A growing number of new car buyers are finding they owe more on their existing car loans than the vehicles are worth as trade-ins.
The phenomenon, known as being ''upside down' on a loan, is the result of a confluence of changes in the ways Americans buy and finance their vehicles.
To begin with, the prices of new cars and trucks have been held down as manufacturers offer incentives and rebates to lure purchasers. As new car prices flatten, so do resale values. Buyers, meanwhile, are choosing increasingly longer-term loans, sometimes extended over 84 months, to reduce monthly payments."
The second page explains how this happens...stretching a car loan over too many payments, then trading in the car before it's paid off. You can avoid this situation by financing your car over a shorter period of time than you wish to keep the car. Your monthly payments will probably be higher, but you will be in a much better position to buy your next car if your trade-in is paid for.
Tags Car - Buying - Shopping - Tip
The phenomenon, known as being ''upside down' on a loan, is the result of a confluence of changes in the ways Americans buy and finance their vehicles.
To begin with, the prices of new cars and trucks have been held down as manufacturers offer incentives and rebates to lure purchasers. As new car prices flatten, so do resale values. Buyers, meanwhile, are choosing increasingly longer-term loans, sometimes extended over 84 months, to reduce monthly payments."
The second page explains how this happens...stretching a car loan over too many payments, then trading in the car before it's paid off. You can avoid this situation by financing your car over a shorter period of time than you wish to keep the car. Your monthly payments will probably be higher, but you will be in a much better position to buy your next car if your trade-in is paid for.
Tags Car - Buying - Shopping - Tip
1 Comments:
Hi Peter.
I was looking at your blogs and it seems you only have 1 ad client on Pete's Auto and Tech while on this blog you have 3 ad clients.
Adsense allows up to 3 ad clients and 1 link client and 1 search box per page.
I replied to you quesstion back on my blog but would be happy to go into more detail if you like.
It is best to email me at shifter7@gmail.com rather than try to go back and forth between comments.
By AdLab, at 9/28/2005 6:53 AM
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