What you need to know about auto loans before you buy a new car

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Patricia Lopez has tips on buying a car via an auto loan

Automakers saw a record year in 2015 and it you think this is the year you'll get a new car. So what should you consider?

Money experts say the average term for a new car loan last year was 67 months -- that's 5.5 years of interest!

So it goes without saying longer loans means more interest and cars are typically not a great investment.

So to avoid the hundreds and even thousands of dollars in interest, never finance a car for over 36 months. Anything longer is a signal your buying a car that's too expensive.

So with that in mind, find a cheaper car you can pay off in three years.

Related Topics:
automotivebudgetfinancepersonal finance
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