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If you can’t compress your car loan payments into 48 months, you should probably just buy a less expensive car.  It usually doesn't "pay" to spend more than 4 years paying off a car.  A car is a depreciating asset.  It becomes less valuable each month that you own it.  It is that simple.  If you can’t pay off a car faster than it depreciates, you will be “upside down” in it--which happens when you owe more on it than it is worth.  Just imagine having to pay someone to take your car.  That is essentially happens when you take a long-term loan and the car depreciates faster than you build equity in the asset.  Many people with long-term car loans trade in their cars and take a loss when they wrap the still-owed amount for their previous car into the loan of the new car.  That is a situation that can create serious financial trouble.  Avoid this situation.  Just buy a less expensive car instead.

Besides the car loan amount for a more expensive car, be cautious of other annual costs related to routine operating/maintenance items such as: the likely big increase for adequate insurance coverage; high octane fuel requirements on luxury/sporty models, top-of-the-line tires, plus more costly general repairs and replacement parts.  If your budget will be strained by these additional cost factors, minimize your risks--just buy a less expensive car.

If you have bad credit or no credit, getting an affordable loan can be very difficult.  Buying a car is an emotional event, but it doesn’t have to be illogical.  If you can’t afford the outlandish interest charges from a high risk loan, typically 21%, seek other financing options.  Perhaps you can get a co-signer, or borrow from friends and family, but remember that you must be able to pay back whomever you borrow from without draining every penny you have.  If the costs are too big for you, just buy a less expensive car.

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