Dealers Know: Car Loans Take Priority
September 13, 2020
According to TransUnion reports, auto loans top budget priority payment lists. Even the crash of the housing market, homes loans still fall second to car payments. The mortgage delinquency rates push beyond 30 days yet this expense still takes priority over credit card debt. It makes sense. Why fall short on secured loans when there is personal property at stake? Credit bureaus are not the only eyes watching this trend. Car dealers have taken notice and they are taking advantage of consumer’s eagerness to pay.
Dealers will push a brand new car. Who can resist the smell and sleek interior? It’s a nice thought to be able to get all the latest bells and whistles. It’s okay if your credit score is installment loan less than perfect. Dealers have the proof they need that customers are willing to make their loan payment. The salesman will make it is easy to afford the installment loan payment even for those with sub-prime credit. By extending the term of the loan to 5 – 7 years, the finance department will manipulate the payment plan to fit your budget. You probably will never even notice what interest rate you are paying. The excitement of a loan approval will often fog those details. Long loan terms equate to lots of interest charges. It’s a small detail the finance department will probably choose to omit from their convincing speech. Don’t want to pay the extended interest payment? The dealer will understand and lead you to the used lot.