Six Is Enough

Q: Our 23-year-old son is close to buying a car, and he stunned us by telling us he’s probably going to get a 72-month loan. Six years?! Who permits such a thing? Anyhow, what’s your feeling about financing a car for such a long time? A: First, the durations for loans have been creeping up a lot in recent years, far beyond the two- and three-year terms that were common when we were getting our cars. Some might argue there are good reasons for such a long term. Loan rates are quite low, and if someone is making good use of the $100 or so a month being saved from taking a long-term loan - investing it at a much better rate, for example - then it’s probably okay. But what often happens these days, especially among people your son’s age, is that they get the extremely long terms so they can qualify for a more expensive vehicle. Hey, we’d all like a newer, faster, more expensive car. But at age 23, when jobs may not be especially stable; when roommates might come and go, possibly leaving him holding the bag for more rent than he’d expected; and when a host of other things can transpire, I think it’s a horrible idea to play this game and wind up with six years of payments. (And, by the way, is it a good idea for anyone of any age to take on significantly more debt than absolutely necessary merely to have a higher status symbol?) He’s an adult, and you might be unsuccessful dissuading him if he is, in fact, signing on for longer simply to buy something more expensive, as I suspect. But it would be good for him to hear the negative implications of this approach. A lot of car salespeople make the most of situations with young would-be buyers and provide lots of arguments for those longer-term loans, but I’d bet my six-year-old Acura that he somehow never got around to mentioning the downsides. What’s your question? Sharon Peters would like to hear about what’s on your mind when it comes to caring for, training and loving your pet. Email Sharon@Pets2008.com.