Quote:
Originally Posted by DarkstarZero
But the 10 year loans are very real. I've personally had my local dealership try to push BMW Select's Balloon financing on me where they said I could just refinance the balloon payment making for a 10 year loan. It felt like they were making commissions on that financing option.
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No doubt. It's quite a never ending cycle once you get on that extra-long loan train. Having said that, I think it's smart to finance for whatever period get you the lowest interest. It's definitely possible to pay the loan off early. I don't think however, that a lot of people think much about what it takes to stay above water at the very least.
Personally, I usually go for 5 yr loans, but have no issue with going a little shorter or longer. I paid off the BMW in 3 yrs but had a 5 yr loan. The Jeep will hopefully be almost paid off by the end of 2021 and IIRC right now, we have like a 70 month loan on it. No worries though---it will be paid off WELL before then. And right now, we owe a good amount less than it's worth.