Are 7-year car loans worth it? - FOX 32 News Chicago

FOX 5 I-Team investigates

Are 7-year car loans worth it?

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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.

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