Are 7-year car loans worth it? - Atlanta News, Weather, Traffic, and Sports | FOX 5

FOX 5 I-Team investigates

Are 7-year car loans worth it?

Posted: Updated:
ATLANTA -

More and more car buyers are doing something that was frowned upon not that many years ago. They're taking out car loans lasting seven years. Is it worth it?

If you take out a car loan lasting seven years, it will take you nearly two presidential terms to pay off that car. During that period, you're also paying a lot more interest at a higher interest rate.

In days gone by, a loan like that carried interest that was just too high.  According to the Wall Street Journal, the rates for seven-year car loans are going down, so the interest in longer loans is going up.   

The good news is smaller car payments, in some cases you could a $100 dollars less than what you are paying now. With lower payments, you could get a nicer car.

But the big pitfall is still about money. You're going to pay a lot more for the car. Not a little bit more, but thousands more.

Keep in mind how long you keep a car.  An auto broker the I-Team talked to says most people change cars every three years. If that sounds like you and you have a seven-year loan, you still owe a bunch of money on that car you're trying to sell.

It may have you wondering whether that extra money in your pocket every month is really worth it.

  • I-Team Story ArchiveMore>>

  • Attorney General reopens investigation into DeKalb travel agent

    Attorney General reopens investigation into DeKalb travel agent

    Friday, August 1 2014 10:31 AM EDT2014-08-01 14:31:25 GMT
    FOX 5 I-Team InvestigatesFOX 5 I-Team Investigates
    A local travel agency owner, who's been ordered by the Attorney General's office to clean up his act, is facing the same complaints again. First, there were Girl Scouts then church ladies and now a family planning a cruise says its out $21,000.
    A local travel agency owner, who's been ordered by the Attorney General's office to clean up his act, is facing the same complaints again. First, there were Girl Scouts then church ladies and now a family planning a cruise says its out $21,000.
  • Ray McBerry ex-employee speaks

    Ray McBerry ex-employee speaks

    Wednesday, July 30 2014 11:02 PM EDT2014-07-31 03:02:51 GMT
    A second young woman filed a Henry County police complaint accusing former gubernatorial candidate Ray McBerry of some bizarre behavior.
    A second young woman filed a Henry County police complaint accusing former gubernatorial candidate Ray McBerry of some bizarre behavior.
  • Mom confronts Ray McBerry over modeling request

    Mom confronts Ray McBerry over modeling request

    Wednesday, July 30 2014 12:04 PM EDT2014-07-30 16:04:32 GMT
    A twice-failed candidate for Georgia governor found himself face-to-face with a mother furious over what he was trying to do this month with her teenage daughter.
    A twice-failed candidate for Georgia governor found himself face-to-face with a mother furious over what he was trying to do this month with her teenage daughter.
  • Contact the FOX 5 I-Team

    * denotes required fields

    We're sorry, but only one entry is allowed per person.
    Thank you for your continued interest.

    Thanks for contacting FOX 5.  To reach our newsroom by phone, please call (404) 898-0100.

Powered by WorldNow

1551 Briarcliff Rd., NE
Atlanta, GA 30306

Main Number: (404) 875-5555
News Tips: (404) 898-0100

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | New Terms of Service What's new | Ad Choices