There’s been an increased rise in people taking out long-term car loans. The Consumer Finance Protection Bureau says that 42 percent of auto loans given out in the last year carried payback rates of six years or more, compared to 26 percent from 2009.
According to Consumer Reports, “The move to longer-term auto loans is opening up more risk for consumers,” CFPB Director Richard Cordray said in a press release. “These loans are more expensive and can result in consumers continuing to owe even after they are no longer driving their car.”
Auto loans are the third largest category of household debt for American consumers.
Image via Your AAA Magazine.