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To: FITZ

What does a longer loan term have to do with the price of a car?


156 posted on 10/22/2004 8:20:51 PM PDT by Toddsterpatriot (Hey, look at me, I'm a math major.)
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To: Toddsterpatriot

It means that the average car buyer cannot buy a car within the time the average car buyer in the past could. Also it means you are likely to be making a large monthly payment in 4 to 6 years for a car that isn't worth much --- in the past when you could pay off a car easily in 2 years, you weren't making big payments after it lost it's worth. Cars today are not likely to last longer than cars in the past --- with all the plastic parts, they're likely not to last nearly as long. Plus don't forget the amount of the payment that goes just toward interest on the loan --- that's all money thrown away. Interest on a 2 year loan is less than on a 6 year loan.


157 posted on 10/22/2004 10:05:16 PM PDT by FITZ
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