Rising interest rates and increasing costs to borrow money had a predictable result last year: more carbuyers turned to longer car loans for lower monthly payments. Nearly one in five carbuyers by the end of Oct. 2022 had a seven-year loan to purchase a new car, and almost one in 10 used carbuyers opted for a seven-year loan, according to Automotive News. Those 84-month financing terms are almost certainly due to rising costs to borrow money, and reportedly even some new-car debt was even longer. Automotive News quoted a Hyundai financing dealer who said 60% to 70% of new car loans at her dealership were 84 months long or longer. “It’s insane,” Headquarter Hyundai (Sanford, Florida) Finance Director Jasmine Figueroa told Automotive News.
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