The Terms Are Too Long
The terms are too long. We all want low payments and that comes with a cost, at least it does when our credit isn’t A-1. Without A-1 credit, we must extend our payments for a very long time to get lower monthly payments. It sounds like a great deal, but once you get to year 3-4-5 of your loan, you then realize that you might be a bit upside in your car loan after you finally pay it off. Shoot, we’ve even have seen 7-year loans for a car loan. These are the things that people hate the most about these loans. We drive off the lot with our new car all happy, but then like a falling sack of bricks it hits us sometime later that we did not get the very best terms, and we will suffer because of it.
Interest Rate Is Too High
When we accept a high-interest rate, we often make all kinds of excused both internally and externally. We say things like, well, at least I got a new car, or maybe something like, at least my monthly payments are low. These excuses we use as self-protection and ego protection after getting fleeced and accepting awful loan terms. A high-interest rate on our car loan means that we are paying back a lot more money than we have borrowed. It also means that to get those low monthly payments that are always promoted that we must pay back our car loan for a lot more YEARS than someone with a low-interest rate and low monthly payments will
We Often Feel Tricked
Yes, this is one of the main emotional things that we hate about getting a car loan. We are left feeling tricked or even cheated by loan officers. It seems like they always promised the moon, but when we look back at what we actually receive the terms only favor them. This is the main reason why people hate shopping for a loan. They know that buying the car they want is emotional, they know many of the things that they should do, but that impulse and immediate gratification instinct jumps in and clouds their critical mind.
The corollary to all of this is to remain stoic, do a ton of research so that you are in the best position to get a good car loan.