Sure, everyone understands what goes into taking out a five - year car loan then paying it off with interest in installments over the next 60 months. (baltimoresun.com)
If you need to consider stretching a 5 year car loan out to 30 years, you probably can't afford that vehicle! (getrichslowly.org)
For instance, with a $ 25,000 5 - year car loan at an interest rate of 16 % (which could be significantly higher with bad credit) would likely cost you over $ 6,000 more than if you had decent credit and were able to get the same loan with an interest rate of 8 % (which could be significantly lower with a 700 + credit score)-- a typical home mortgage could cost you an extra $ 100,000 in interest! (creditabsolute.com)