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The Disadvantages of Long-Term Loans

When you're shopping for a vehicle, it's easy to be dazzled by dealers who offer "only $99/week" type of advertising. After all, most people shop for vehicles based on their ability to make individual payments rather than the total price of the vehicle. 

If you're shopping for a new-to-you pre-owned vehicle in Brantford or Owen Sound, check out Shop 4 Cars. With hundreds of used cars in inventory, and friendly, knowledgeable staff, you'll enjoy the best automotive dealership experiences in town. 

While it may be tempting to jump on low monthly or weekly car payments, this strategy has numerous drawbacks. The longer the term the vehicle is financed, the more interest you'll pay overall. Why put more money in the lender's pocket? 

Another disadvantage of long-term loans is the risk of being underwater for longer. Called "negative equity" or "upside down," you can easily find yourself in a position where you owe more on the vehicle than it is worth. 

If you ever have a car accident and your vehicle is written off, your insurance may not pay out the amount owing, only its current value. You could end up in a situation where you have no car but are still making payments. 

Having a long-term loan on your vehicle is like having a mortgage on your car. Once you're ready to trade vehicles, you'll still owe money on it. This eliminates the flexibility you thought you had when you opted for lower payments stretched across a longer term. 

Instead, we recommend working with a dealership, like Shop 4 Cars, conveniently located in Brantford and Owen Sound. Shop 4 Cars can offer you a high-quality vehicle at a fair price -- a price that you won't need to spread across a long term. We can get you approved quickly, in only three simple steps. You'll drive off the lot behind the wheel of a great vehicle that won't get you into financial trouble down the road. 

Take advantage of our on-site financing experts, who will give you the information you need to make a smart, informed financial decision about your vehicle purchase. We also have access to a broad network of financial partners, allowing us to find you the best available rate every time!

Visit Shop 4 Cars in Brantford or Owen Sound today, and drive away in a great vehicle, leaving everything behind in the rear-view mirror!

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