***Bankrate study, analysts used the so-called 20/4/10 rule. It assumes a 20 percent down payment, a 48 month loan,***
Think about the olden days before car sales companies started offering long, long term credit often with no money down.
Back then, you made your buying deal, then went to the local bank, and negotiated a loan + sales tax loan through them.
A new car was 20% down and 24 months to pay the loan off.
A used car was 20% down and 18 months to pay the loan off.
None of this 72 months and no down.
“None of this 72 months and no down.”
Back then there was no need for ‘gap insurance’
Today, so many are underwater for the entire life of the car.