An interesting trend in automotive financing could affect your ability to buy a new car. To take advantage, you’re going to need fair (but not good) credit and be willing to stretch the duration of your loan up to 7 years.
As outlined in a recent Automotive News article, auto loans lasting 84 months or more are currently finding both advocates and opponents in the automotive-financing world. Lenders opposed to the longer loans feel consumers with fair credit are buying too much car and are therefore more likely to eventually default.
Turns out, according to Equifax data quoted in the article, these 7-year loans are the least likely to end in default among consumers in the 630-to-680 credit range, which is considered “fair” credit.