A traditional car loan is repaid in four years, but more Americans are stretching out their payments, according to Experian Automotive.
Michelle Singletary, who writes the “Color of Money” column for The Washington Post, says that when consumers choose to pay back a car loan in six to eight years, they’re taking a big risk: More money goes to interest payments. And if there’s an accident, the owner is still responsible for the balance of the loan.
Singletary joins Here & Now’s Peter O’Dowd with advice on financing your next automotive purchase.
- Read more about car financing in Michelle Singletary’s recent column
- See more personal finance advice from Michelle Singletary
Guest
- Michelle Singletary, writes the nationally syndicated personal finance column, “The Color of Money” for The Washington Post. She tweets @SingletaryM.
Copyright 2021 NPR. To see more, visit https://www.npr.org.