Personal Finance expert Casey Bond, of GoBankingRates.com says borrowers should keep car loans as short as possible.
Ms. Bond explains that car loans have, in fact, been growing in length over the past couple of years, citing Experian data that finds the average term length on new car loans grew to a record-high 65 months in the fourth quarter of 2012.
She explains the growing cost of new cars combined with incredibly low car loan rates prompts more borrowers to finance vehicles they otherwise couldn't afford by stretching out the loan term over an extended period of time. However, this increasingly common practice is hurting the car buyer.
Expert advice will come in handy when your customers come in asking what type of auto loan length they should be looking at. There are advantages and disadvantages either way, but it is in the dealers best interest to be prepared to comment on both sides of the issue. [Read more]The Article Dealers: Be Ready When Customers Ask This Question appeared first on Automotive Digest.