A 72 Month Car Loan on a '03 Honda? Are You Crazy?!

Dear Tony,

I hope you're doing well.

I am looking to buy a 2003 Honda Element (automatic) with 32,000 miles. The price is $14,900. I am looking at a 6 year loan period, and my credit score is right around 650.

They told me that the interest rate would be 8.9% and the monthly payment would be $300 month (after tax). Does this monthly payment seem high for the price tag and given the 6 year loan period. I like the price tag but the monthly payment seems to be a bit high.

What are your thoughts?

Thanks . . .

Regards, Tony

---

Hi Tony,

It sounds very high! 72 payments at $300 a month is $21,600! And that's not counting your down payment and tax!

Personally I think you're crazy to finance an 03 for 72 months. You'll be stuck in that loan forever with no way of trading out of it. Why don't you try Capitol One Auto Finance at: http://www.insidercarsecrets.com/pf . They will give you a blank check to pay for the car, and you can trust them to give you a decent rate based on your credit score.

If you go through with the deal you had better get GAP Insurance to protect yourself. You can read more about GAP at: http://www.insidercarsecrets.com/gap.html

Good luck . . .

Tony Iorio
http://www.insidercarsecrets.com/
http://www.car-loan-quotes.com/
http://www.used-car-warranty.com/
http://www.greatcreditcarddeals.com/