Americans lose business by not researching auto loan terms

  • An online loan website published the results of a Harris Poll showing how Americans are approaching getting a car loan.
  • A third of those surveyed did not know what their loan APR was, LendingClub reported.
  • According to the survey, only 59% of recent buyers have researched auto loan options.

    Americans are paying more than ever for auto loans, as we recently reported, and accepting the longest loan periods ever, averaging 60 months. Although there is no simple explanation for this phenomenon, the habits of Americans when it comes to finding loans do not help.

    Harris Poll conducted a survey in May 2019 for Lending Club in the form of a questionnaire answered by people who had bought, financed or leased a vehicle in the previous year, as well as those who intended to do so over the next 12 months. Nearly half of those polled said they were more likely to research what they would watch next on TV than to inquire about financing options for a car loan. The study found that a lack of information regarding their car loans was also prevalent among buyers, with a third saying they didn’t know what their APR was and 40% didn’t know what APR to expect for a car loan. ready.

    On top of that, 37% of buyers surveyed said they didn’t think it was worth researching rates like loan term and APR because they’re non-negotiable. While the process of finding auto loans can be tedious, failing to do so could result in buyers overpaying for their loan or getting a car they can’t afford, and like the website l suggested, this could leave huge sums of money on the table. car buyers could save.

    Americans are entering into long-term leases at unprecedented rates; In the first half of 2019, about a third of auto loans for new vehicles had terms of more than six years, up from 10% of loans ten years ago, according to Experian. The average term of a loan is 69 months. Longer leases give Americans the illusion that the car they buy is affordable because the the Wall Street newspaper concluded.

    Due to buying cars they can’t afford, more and more Americans (33% in the first nine months of 2019) who trade in their cars are doing so with negative equity, which means they still owe money on the car they are in. trade. This is an increase from 19% ten years ago.

    So, finding out whether to look excessively Game Of Thrones may be more appealing than researching how and where to get a car loan, but the latter can save you money and fund your HBO subscription.

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