The last couple cars we bought were for the kids and we paid cash. I didn't know car financing for 34-38% were for 6 years. And now Tesla is offering 7 years.
Coming from an era of 4 year (and then 5 year) financing, this sound really weird (and dangerous) to me.
Tesla starts offering 84-month loans as interest rates rise
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Tesla Inc. has started offering consumers 84-month auto loans after Elon Musk said the carmaker would “have to do something” about rising interest rates.
The company now includes seven-year loans as an option on its US order pages, after previously offering loans as long as 72 months. While extending loan terms can lower car buyers’ monthly payments, consumers tend to pay more in interest and face greater risk of owing more than their vehicle is worth.
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While 84-month auto loans have been gaining in popularity, the trend slowed early this year, according to credit-reporting company Experian. Roughly 34% of new vehicles loans in the first quarter were longer than six years, down from about 38% a year ago.
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I went to a couple car financing calculator places to figure out difference in interest/principal. Unsurprisingly, it only gave monthly payments and not total interest/outlay. Guess I have to get our my HP-12C for that.