Question on financing term
Senior User
Joined: Aug 2002
Posts: 113
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From: Pasadena MD
Question on financing term
I financed a 1996 Explorer for 72 months. I found that the payment was easier but I would only recommend it if you plan on keeping the truck for at least 4 out of the six years. I got completely hosed on trade in due to the fact that the payment stretch did little to bring down the principal owed. That was 3 years into the loan. If you plan on keeping it, it's a great way to pay!!!!
Dave
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Joined: Feb 2002
Posts: 3,496
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From: Calgary Canada
Question on financing term
As I'm sure you know, you're going to be paying a lot of interest on a 6 year loan. Try figuring out what you're paying in interest per month on a 4 vs. 5 vs. 6 year term. It's discouraging. I understand the need to keep payments down though.
If you decide to go longer term, make sure you arrange the loan so there is no early payment penalty. In other words, if you happen to win $20G you could pay of the loan tomorrow and not be responsible for 6 years of interest. Realistically, it lets you save up and drop a larger chunk of money on the loan periodically to help speed the repayment process and save yourself some money.
Waxy
If you decide to go longer term, make sure you arrange the loan so there is no early payment penalty. In other words, if you happen to win $20G you could pay of the loan tomorrow and not be responsible for 6 years of interest. Realistically, it lets you save up and drop a larger chunk of money on the loan periodically to help speed the repayment process and save yourself some money.
Waxy
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Junior User
Joined: Mar 2002
Posts: 59
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Question on financing term
Yah, its a long time to pay on a truck. The PSD is supposed to run forever so getting at least four years shouldn't be any big deal. Heck the engine warranty won't have even run out yet.
I was just asking cause I didn't want to be the only guy buying a truck on six years. They looked at me kinda funny at the dealership when I told them I wanted to go 72 months.
I was just asking cause I didn't want to be the only guy buying a truck on six years. They looked at me kinda funny at the dealership when I told them I wanted to go 72 months.
Freshman User
Joined: Oct 2002
Posts: 36
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Question on financing term
I have done the 72 month thing and it is fine. I did one through ford credit and it worked out fine. Paid off early also. It does help the payments, and of course you have to pay more in interest over the time, but the payment must fit the budget and if the 72 month works for you it is fine.
Bat
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