Is Long-Term Truck Financing Crazy…or Viable?

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Truck Financing

As truck financing terms rise, more people are taking out long-term loans. And even though it may seem crazy, there are some good reasons for doing so.

Recently, we delved into the world of ever-expanding long-term truck financing and its effect on the world of finance. In case you missed that fascinating discussion, it appears that loans spanning a whopping 84 months are now quite popular. Part of this trend is driven by rising truck costs, of course. But much of it also comes from America’s desire for high-end, luxury trim trucks. Pushing loans out enables consumers to reach a monthly payment they can afford. But it also potentially leaves them upside down on their truck financing down the road.

As you can imagine, opinions on whether this is a good thing or bad thing vary greatly. Some people keep their trucks for a long time, so a long-term loan isn’t really a concern. Especially if you couple it with GAP insurance to protect yourself from depreciation. Others rightfully think it’s crazy to buy something you really can’t afford. So as always, we headed to the FTE forums to check out what you, our Ford Truck Enthusiast members, think about this ever-expanding truck financing issue.

Ford F-150

As SloScooter points out, long-term financing oftentimes enables people to buy the truck of their dreams. And as they also mention, people are free to spend their money however they wish.

“Mine is for 72 months. If it’s someone’s dream truck and this is the only way they can purchase it I won’t judge. I know folks that spend thousands a month going out to eat every night. To each his own.”

Others, like briangp, enjoy the flexibility longer term loans give them.

“I ended up doing 72 months with my own financing. I probably didn’t finance half of what some people do. I’m kinda wishing I did 60 months now, or maybe even 48. But it doesn’t bother me because I usually pay extra against the principle every month anyways. I’ve always paid off my vehicles early. At the time I just wasn’t sure if I could handle the higher payments along with flight training etc. If you pay extra every month, it’s not as bad.”

“I go 60 months and then set up my payments so its paid off in about 42 months,” added lawnspecialties. “But if I fall on a hard month, I can resort back to the lesser payment. Or if really needed, I can skip a payment because I’ll be so far ahead. Right now, my next payment is not due until August 15. But I’ll make my next payment around June 1 just like normal.”

Brett Foote is a longtime contributor to Internet Brands’ Auto sites, including Chevrolet Forum, Rennlist, and Ford Truck Enthusiasts, among other sites.

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