Vehicles that would have been completely unaffordable two decades ago are now financially accessible. Many consumers can buy cars with no money down, for a monthly, bi-weekly (or even daily) payment that has somehow become “affordable.”

Most car-buyers often don’t understand that long-term vehicle financing can set up a cycle of greater and greater debt with subsequent vehicle purchases.

According to many dealers more than 50 percent of customers with trade-ins have negative equity.

Before agreeing to an extended term loan for a vehicle purchase, consumers should educate themselves and stick to their budget. Less focused on the weekly or bi-weekly payments. Also ask for full disclosure of the payment structure.

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