04-02-2013, 10:36 PM
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#1 (permalink)
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A True Z Fanatic
Join Date: May 2012
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Posts: 7,216
Drives: '12 GM 7AT S/T
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Quote:
Originally Posted by dmhenderson
Lowering payments by extending the loan 1+ years. You are letting the lender take your future income for free and they don't even have to lift a finger.
Don't ever, ever do this unless you're going to like...lose your car.
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I agree 100%, I'm just trying to help compare apples to apples. If you take your current car and trade it in on another car, you will finance the difference between the trade in value and the purchase price over the life of a typical auto loan, 5 years. If part of the decision-making process in a new car purchase is the loan payments, I think it's wise to examine how much of that payment decrease is simply due to extending the term. I'm not trying to pass judgement or push for a certain outcome, just trying to help with the analysis.
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