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Casper Auto Loans

As you look for Casper auto loans, you might be tempted to go for long-term loans. Here we'll help you determine if your car loan will outlast your car.

Long-Term Loans: a Short-Term Gain

When you're comparing Casper auto loans, it's easy to be seduced by the ultra-low payments that long-term loans can offer. You might give in to the short-term benefits only to have the staggering interest costs catch up with you in the long run. You are not alone in your thinking. According to the Consumer Bankers Association, 89% of Wyoming auto loans are financed for more than four years, and 55% of loans are financed for over five years. In a way, the trend makes sense. New technology means cars are being built better, and thus last longer. Consequently, consumers tend to keep their cars longer, so it would stand to reason that the loan cycle would also lengthen.

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The Pros & Cons

Virtually the only benefit of long-term Wyoming auto loans is that they enable consumers to buy a more expensive car than they otherwise would've been able to afford. Twenty years ago, car buyers used to focus on the price of the car when they purchased a vehicle. Nowadays, the cost of the monthly payment is what drives buyers' decisions. The biggest problem with a long-term Casper auto loan is that it delays ownership of the vehicle. This is a problem because your car will unrelentingly decrease in value over the term of the loan, so you will perpetually remain in a state where your car is worth less than what you owe on your loan. Long-term Casper car loans also mean the loan will be more expensive overall because of increased total interest expense. In other words, you essentially pay more to be able to pay less now.

How to Handle a Long-Term Loan

If you're savvy about long-term Wyoming auto loans, they might not be such a bad idea. For example, you might opt for a five-year Casper auto loan with the aim of paying extra each month in order to get the loan paid off in three years. By doing so, you retain the flexibility of a long-term loan and the low mandatory minimum payment, but you cut out the sky-high interest costs of loans with excessive terms by paying it off early. If you opt for this strategy, make sure that your loan doesn't come with any prepayment penalties. Some lenders force borrowers to make several months' worth of interest payments if they pay the loan off prematurely. Do you have a vehicle in mind? Find out if it is one of the more dependable vehicles we have listed.