Beware of long-term six- or seven-year auto loans. I once had a story with the purchase of https://rod.kaidee.com/c11-auto-car?car_type=Pickup, I tried and reviewed many dealers selling cars until I found one that I use to this day A third of loans for new cars are now issued for more than six years. And it's "a really dangerous trend," Reed says. We have a whole story about why this is so. In short, a seven-year loan will mean lower monthly payments than a five-year loan. But it will also mean that you will be paying a lot more money in interest.Reid says seven-year loans often carry higher interest rates than five-year loans. And, as with most loans, interest is charged upfront—you pay more interest than the principal in the early years. "Most people don't even realize it and don't understand why it's dangerous," Reed says.
