Finance Companies Moving Toward 84-Month Auto Loans

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The dri­ve by automak­ers to reduce incen­tives is hav­ing unin­tend­ed con­se­quences. In com­bi­na­tion with ris­ing inter­est rates, cap­tive finance com­pa­nies are offer­ing loans up to 84 months to keep month­ly pay­ments low. Even Toy­ota Finan­cial Ser­vices has got­ten in on the act. The result is increased loan default rates and changes in con­sumer buy­ing pat­terns.