Choosing the Right Term: Deciding the Ideal Car Loan Duration 

Ballin' in my 2013 ford focus that I got for 4k total back in 2018. When it finally rusts out I'll probably be ballin' in a 2018 ford focus for 8k.

Why not get Longer Loan so that the required payment is low but pay it like you have it at 3 years. The one month or two that something happens you can pay a lower rate just for the emergency

20% down with the monthly payment no more than 8% of your gross income and to pay the car off within 3 years, you're gonna have to pay extra per month to do that.

When signing for the vehicle. Ask the sales person about GAP insurance on your loan. GAP covers what the insurance company may not. It cost more but , long term it's worth it.

I think there is an even more fruitful conversation to be had before this topic. "Do I need a new car?" I would like to hear the guys talk about the triggers should be for buying a newer car? Family grew? More utility required? Repairs (to what extent do repairs trigger a new car) A lot of people should be asking themselves "Do I NEED a new car? And furthermore, why do I think I need a new one? The new car itch is easy to scratch. Should you scratch it or not? I enjoy my cars, and if not for the Money Guys, I'd have already bought another car I probably didnt need. My car is a high quality 2014 japanese sedan with 71k miles on it and no pending repair issues or history. And its PAID off. I ask myself daily, why look at a newer car? Mid life crisis, maybe? I just keep practicing delayed gratification (step 8 of FOO). I know my dollars work harder anywhere else than they would soaked in a newer, but depreciating, asset.

Took a 0% loan at 36 months. In hindsight the market is doing well enough this year that I'd have done better with a 1.9% and investing the difference. But hindsight is like that. Zero complaints about a 0% in this environment!

There never was a good time to buy a car and there never will be.

Depreciate? Have you seen the Used Car Market lately? Lol

I see the shot you took at Dave Ramsey.

You already spent the money when you pickup the car. You’re just admitting it when you pay it off. That being said, being under water just means you’ve been saving monthly up to that point. Not actually saving money

Curious, what if you saved up enough money to pay cash, but instead finance it at a low interest rate putting the total of the loan in a HYSA. Then you’d always have enough money to pay off the loan and if your car ever gets totaled you can pay off the remaining balance and put the insurance payment towards another vehicle.

Is GAP insurance worth getting?

Sounds like the guy whose wife totaled the car should’ve had GAP insurance…

Too many stories

So a car with a payment or a more expensive car is more reliable? lol. Yeah OK.

Can't you just do a longer loan term in case of life happening and just pay extra and pay it off in 3 years? Say for instance my truck payment is 850 for 72 months but, I pay 1500 for a little over 36 months. That means I have the availability for life to happen instead of HAVING to pay an upcharge amount. Even doing 36 months only saves you 5% total in interest. Which is like 4000 dollars. Not saying 4k isn't a lot of money, but paying 1600 a month or getting your truck repo'd versus 850 a month and paying whatever extra you can and pay it off early seems a lot more intelligent.