The ‘6-Year Car Loan Trap’: Why It Quietly Costs Drivers Thousands

Stretching your loan over more years might seem like an easy fix for lowering your monthly payment. But it comes with plenty of drawbacks. Watch out for these pitfalls before borrowing a six-year car loan. Greater Risk of Overspending Since lenders underwrite based on cash flow, often they’ll lend you more money if you borrow a longer loan. That means you can theoretically spend more on a car, even though you’d be better off spending less. Explore More: 7 Critical Checks Before Buying a Used Car, Accordi ...