The changing economic landscape has had a major impact on car loans. Many financing options have expanded to longer terms and lower monthly payments, which provides opportunities for subprime buyers to afford a vehicle even when on a tight budget. A recent trend involves car loans spread out for as long as seven years in an attempt to keep payments as manageable as possible, USA Today reported. <\/p>\n
According to the news source, some of the longest auto loans can extend anywhere from 73 to 84 months. Such payment plans have seen a dramatic increase in popularity in the past year, largely due to the current market for cars. Prices of vehicles have gone up in recent years thanks to improved quality, enhanced features and a smaller pool of used cars, which has forced prospective buyers to shop around for a good deal. <\/p>\n
"It's definitely market driven," Allen Foster, general manager of an auto lot, told the news source. "Customers want a vehicle, but have a budget to work within." <\/p>\n
Despite these long payment periods, many drivers are still looking for options that can help them reduce their monthly out-of-pocket costs. The majority of these individuals are shouldered with a worse credit score and have difficulty acquiring loans, regardless of the state of their bank account. <\/p>\n