Members of Andrews Federal Credit Union can save money with a car loan rate that doesn't take advantage of their funds. ... For a 61-72 month term, members of the credit union can borrow at an incredibly affordable car loan rate. Many factors can ... Car Loan Rate Deal of the Day: Andrews Federal Credit Union at 2.09% APR
Between now and April 17th, 2011, Gesa Credit Union is offering Auto Loans for as low as 2.99%*. *APR=Annual percentage rate. Rate up to 72 months includes .25% discount for auto transfer from a Gesa checking or savings account at the time the loan is originated at a branch. Vehicle must be 2008 or newer to qualify. On new vehicles we will finance 100% of MSRP, plus tax and license, GAP, MBP, and Debt Protection. On used vehicles/equipment, we will finance 100% of NADA, plus tax, license and dealer add-ons that are claimed refundable. Refinanced loans must be from another institution and not a Gesa loan. Rate dependent on credit qualifications. Rates, terms and fees subject to change without notice. Gas card will be issued as a 0 Gesa Visa gift card when loan is issued from a Gesa branch or online. Offer ends April 17th. Example: 72 monthly payments of .19 per 00 borrowed.
http://leafgardenpress.com/ Gesa 2.99% Auto Loans
Auto loan borrowers looking for long tenure loans like the 72 month used car loan should carefully consider the negative equity on the car that would accrue over the long period of the loan. For some people the 72 month used car loan is extremely convenient because the monthly payment would peg lower with the long tenure involved. But, if you consider the amount of money that goes out of your hard earnings, then the decision merits a second look. The following discussion will help you understand how the 72 month used car loan impacts your finances.
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Like in the case of any other loan, your ability to meet the monthly payments is critical and this calls for a great amount of financial discipline over an extended time frame. Any default over the 72 month period can impact your credit scores and consequently your ability to raise any fresh loans at competitive rates.
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One way you can effectively address the issue of negative equity accruing across the long tenure of the 72 month used car loan is by making a decent down payment and thereby bringing down the loan value.
Such a measure will also reduce the monthly payments significantly. Useful tools like the car loan calculators available on the internet can be used to assess how the 72 month used car loan pans out across the tenure with varying attributes. When you design your monthly payments below what is affordable, you can use some of the surplus to make additional payments every month. Over a year or so, these additional payments will cumulate to a month's dues or more, thereby providing a cushion that can be used during difficult times.�
Additional payments over and above your monthly commitment will also mean that you complete the repayment ahead of the 72 month period.
Therefore, before signing up for the 72 month used car loan, you should study the loan documentation carefully and understand the prepayment terms offered by the lender. Most lenders do not like the idea of pre payments and will have punitive conditions attached to this possibility.�
Apart from the negative equity factor, the 72 month used car loan may not be your best option because the interest rate and finance charges on long term loans like this are significantly higher. Often times, borrowers are influenced by the lower monthly payments and do not appreciate the long tenure over which these payments will be made.
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With the automobile industry going through a lean patch, you can find a number of used cars that are as good as new. By opting for cars that are just about a year or two old, you will address the negative equity issue effectively, be able to get behind the wheels of a good car that is far more affordable, and yet manage your monthly payments effectively. The exercise of finding the right car may take some amount of shopping around and research through the internet. At the end of the exercise however, you will be an informed borrower deciding on the 72 month used car loan.
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Find More Negative Equity and The 72 Month Used Car Loan IssuesQuestion by : Car Purchase 72 months? Hi I just bought a used car with a 72 month loan. Buddy of mine told me it's not good having that kind of loan. Is it possible to refinance now? and is it a good idea to do it so soon if doable? Since they just did a credit check. The car year is 2010. MSRP 13.888k and has 4000 miles. I got a 5.07 APR, and ended up with paying $ 250 a month. Warranty is $ 1200, tax is 8.65. Another idea in the table is just to pay 50 a month more to finish the loan quicker. Best answer for Car Purchase 72 months?:
Answer by webjnke1
That was going to be my suggestion. You're interest rate is good. So I think you'd be ahead to just pay as much as possible every payment. Anything over minimum payment ... all comes off the principle. You can pay it off way early that way.
Answer by Stupid Flanders
A 72 month loan is not bad for everyone. It gives you the flexibility of having lower payments for months in which money may be tight and there is no pre-payment penalty, so you can always pay it off, quicker. The warranty was just a waste of money. You can cancel it at any time and get a pro-rated refund.
Answer by Mike
dont try to refi, i don't think youc an even do that on a car and if you do the fees will eat up any savings pay off more at a time or if you have an account from which you're paying off the car, pay more to that account. after 3 years or so either pay off the car or you have extra cash for incidentals (insurance deductibles/tires/etc) but you can make the decision then
Answer by mccoyblues
72 months is too long for any car loan, even a brand new car. If you can't afford to pay off the car in 3-4 years (used) or 4-5 years (new) then you are spending too much money. Why did you buy a warranty? If this car is only 1 year old and only has 4000 miles it has a free manufacturers warranty that is much better than any warranty you can purcashe from a dealer. You gave away $ 1200 and got absolutely nothing in return. Go back to the dealer, cancel this waste of money warranty and get a refund on the money it cost you. You'll need to pay more than $ 50 extra if you want to avoid all that extra interest and depreciation you'll have with this car.
