Be Wary of a 72 Month Used Car Loan

A 72 month used car loan means you will not own a car in its entirety for 6 years. This long loan option is better for new cars than for used cars for a number of reasons.

Decreasing Value of the Asset

Cars lose value the second you drive them off the lot. Over the course of 6 years, a car will lose the vast majority of its value. If you are buying a used car, its value is already diminished. This means, at the end of 6 years, when you finally own the car, it will be worth a fraction of its original price. You will have paid far more to buy the car through the car loan than you will ever see back when you trade in the vehicle.

Cost of Maintenance

The cost to maintain a car goes up the older the car gets. New cars do not need new parts; but, after even 4 years a car may need new tires, brakes and other costly parts. A 72-month used car loan means your car will be about 10 to 15 years old by the time you own it. The car will need a lot of work during this time period, and you will be paying far too much to own your vehicle. 

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