Car loans are getting longer and longer. It's a trend that took a sharp upturn in 2005 and went higher in 2006 and is even higher now.
The Consumer Bankers Association does a survey every year on Automobile Finance and their recently released findings show that the use of long vehicle loans is still rising sharply.
Long loans (more than 72 months long) now account for 17 percent of new vehicle loans. That number is up from only 9 percent last year and it was just 7 percent in 2005. To a degree this increase is probably driven by price increases. And a part of it may be the unwillingness of consumers to keep and drive their vehicles long enough to build up some equity before trading off an old vehicle for a newer one. Part of the problem that comes from that is the negative equity scam that some dishonest car dealers pull over on unsuspecting consumers.
Longer loans means that more Americans are adding to their debt load, and that is not only foolish but may end up putting them deeper into subprime lender debt at higher than average interest rates. That only increases the spiraling debt load. It's a vicious circle that may not end until consumers start tightening their belt and learn to resist Detroit's new car smell.
Of course, the problem with trying to keep a car long enough to get it paid off can sometimes be the fact that it's a lemon in the first place. Don't let a lemon car drive you down the road to a car dealer ripoff. We can help you fight back.
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ABOUT THE AUTHOR
Known nationwide as a leading Lemon Law attorney, Ronald L. Burdge has represented literally thousands of consumers in "lemon" lawsuits and actively co-counsels and coaches other Consumer Law attorneys. From 2005 through 2018, attorney Ronald L. Burdge has been named as the only Lemon Law Ohio Super Lawyer by Law and Politics magazine and Thomson Reuters Corp., Professional Division. Burdge restricts his practice to Lemon Law and Consumer Law cases. The Ohio Super Lawyer results are published annually in the January issue of Cincinnati Magazine. Ronald L. Burdge was named Consumer Law Trial Lawyer of the Year 2004 by the National Association of Consumer Advocates, the nation's largest organization of consumer law private and government attorneys. "Your impact on the auto industry has been magnified many times over because of the trail you blazed for others," stated NACA's Executive Director, Will Ogburn. Burdge has represented thousands of consumers in Ohio, Kentucky and elsewhere since 1978 and is a frequent lecturer to national, state and local Bar Associations and Judicial organizations. Burdge is admitted to Ohio's state and federal courts, Kentucky's state courts, and Indiana's federal courts. Other court admissions are on a "pro hac" temporary, case by cases basis.