84 month is fine as long as you're doing it because the other uses for your money will guarantee you a better rate of return after taxes. Any other reason to me sounds like the truck is not affordable (which they can be if you overbuy). I financed the last two trucks for 36 month terms and paid them in 24. Mostly did that to bolster the credit rating.

84 months pretty much guarantees you'll be upside down on the loan at least for the entire duration of your warranty. I just can't imagine being in that position if life sells you some lemons and requires you to get out of the truck.

 

 

Absolutely one will be under water with an 84 month note. Thosands of $$ disappear as soon as it is driven off the lot - but the debt remains, and so does the interest on that debt. Nice work if you can get it. Not buying more than you can afford gives you options if things were ever to go sideways for whatever reason.

The law of supply and demand applies to money, and credit too. Cars would be a lot cheaper if more people paid cash. If the only thing keeping car makers in business is running Americans into bankruptcy, hell let 'em die now, it's only a matter of time. Wages have been stagnant 40 years now, and today both parents (if there even ARE two parents) have to work to make ends meet, back in the day only dad worked. Moms were expected to stay home with the children, as society then had antiquated, backward ideas such as women were better mothers, goofy stuff like that.

 

I go 60 months and then set up my payments so its paid off in about 42 months. 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.

 

 

I would never go 84 mo, 72 mo is my limit. But, since new vehicle prices are steadily increasing, the car industry will need it to keep selling vehicles. I never imagined I'd ever buy a truck with a sticker over $70k. But new car prices are going up faster than most peoples salary, especially the ones that car shop by payment.

 

 

To me, the rate is far more important than the term. I would happily do a 10 year loan if the rate was right.

Also so keep in mind that cars these days last a long time. Especially the diesel.

 

The only problem is you don't want to be upside down on a vehicle. The longer you finance, the larger chance you will be stuck owing more than the truck is worth. You also carry liability of payment longer, if the economy dips. (which it will).

I've found 5 yrs with 20% down driven 15k a year leaves a comfortable margin with these diesel trucks; ie the vehicle is paid off yet has substantial residual value.

Anybody that is spending this amount of money should do a cash flow diagram to see where you'll be and what you will be paying out.

 

 

 

I would respectfully disagree with the being upside down on the loan part. My trade was paid for and worth $29,000 on a $65,000 purchase. I took out a 72 month note,( first time ever usually only 36-48) just to have a lower payment. I too will be switching over to my credit union and making double payments when I can. Just because people take out long term loans doesn't mean they aren't putting some serious money down, I hope. I know there is some serious depreciation on vehicles however I hope my '17 350 psd is worth more than $36,000.

 

 

I financed mine for 75 months at 1.74%. I was upside for 9 months as 92% of my payment went towards principle from day 1. Now I know you said 84 months but the interest rate really what determines how upside down you will be.

Four years later and I could sell my truck for $30k more then what I owe.

 

Its all roses now, but 2008-10 was an eye opening experience for me to watch from a distance. For some folks, high fuel prices and a retracting economy can make any vehicle value, regardless of how good we think it is, fall like crazy. Large down payments or huge trade in values are an exception to my statement.

I'm sure folks who bought houses in Vegas during 2004-2006 had similar thoughts when they made purchases. I'm not saying the economy will collapse tomorrow, but for me, I only make purchases I know I can easily back out of or walk away from with no financial hardship. I won't be signing any 84 month car loans unless it truly is 0-1% and I'm not trading any rebates for the lower interest rate.