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Longer Auto Loans

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Lenders are giving huge incentives for customers to take on longer auto loans—six or seven years. At the same time, the average age of a car when traded in is less than 5.5 years. This means that people generally trade in their cars while still owing money. Another result of these longer loans is that people will owe more than their car is worth for a longer time:

As many as 40 percent of new cars buyers over the past six months have been “upside-down” on their trade-in, according to data from the Edmunds.com.

There are more good quotes in the article about people wanting—and taking—more than they can afford. Flexo’s advice: Buy what you can afford and keep it until it dies. If you take care of a car it can last two decades. The total cost of ownership can be incredibly low.

Published or updated August 5, 2003. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.

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About the author

Luke Landes, also known as Flexo, is the founder of Consumerism Commentary. He has been blogging and writing for the internet since 1995 and has been building online communities since 1991. Find out more about him and follow Luke Landes on Twitter. View all articles by .

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