Young man in luxury sports car
As this is being written the average loan term for a new car is 65 months — or just over five years. Experts caution buyers to avoid going longer because of the risks extended loan terms entail. One of the most significant of these risks is owing more for the car than its market value — or becoming “upside down” in the loan.
It’s also just one of several ways that can happen.
Fortunately, getting out of an upside-down car loan is doable.
But it will cost you.