 TITLE: 7 Common Credit Mistakes and How to Avoid Them CONTENT: Opting for Longer Auto Loan Terms\n---------------------------------\nAuto loan terms are at all-time highs—the average financing term for new cars is just under 72 months and about 65 months for used cars.\nOpting for a longer repayment term on your auto loan may seem like a good idea because it lowers your monthly payment. Some lenders will go as long as 84 months, which could make the car you've always wanted more affordable.\nBut if you can, it's best to avoid longer-term auto loans for a few reasons:\n*   You'll ultimately pay more in interest, even if you're paying less each month, which drives up the total cost of the vehicle.\n*   With a lower monthly payment, your car could end up depreciating faster than you can pay off the debt, which means you'll owe more than it's worth.\n*   Your financial situation could change over the next six or seven years and make it difficult to keep up with payments.\nIf you're having trouble with the higher monthly payment that comes with a shorter-term loan, look for ways to reduce how much you borrow. Options include putting down more money, removing add-ons like a maintenance package or service contract, and buying a less expensive vehicle. END