How Long Should My Car Loan Be

August 20, 2014 · 3 min read

When it comes time to be a new car, most people look at the price in terms of how it fits their monthly budget. Monthly budgeting has been especially important since the financial turmoil stemming from the subprime mortgage meltdown. It is perhaps because of this focus on the monthly budget that the average length of a car loan has increased over the past decade; whereas it was once unusual for a car loan to be longer than 5 years, the average car loan is now 5.5 years, according to data from Edmunds. Moreover, this same data shows that 38% of auto loans in 2012 had a term of 5.5 – 6 years, and 12% of the loans had terms of 6 – 7 years. Longer loan terms allow the borrower to spread repayments over a longer period of time, which reduces the amount paid every month. However, by doing this, the borrowers ignore the cost of interest on the loan as well as the length of time it takes to pay off the loan. The fact is, the longer a loan is, the higher the interest rate. A quick search on bankrate.com shows that lenders are advertising a 60-month (5 year) loan for a new car at rates between 1.99% APR and 2.34% APR. The same site shows 72-month (6 year) loan for a new car advertised between 2.44% APR and 3.59% APR. This means that by taking a 72-month loan compared to a 60-month loan, a customer will pay a higher interest rate for a longer period, meaning that they pay more in interest charges over the life of the loan. For example, let’s take a 60-month new car loan of $25,000 at a rate of 2.25% APR. My trusty Excel spreadsheet tells me that this is a monthly payment of $440.93 per month for 60 months. This is a total of $26,456.02 paid over 60 months on a $25,000 loan, with $1,456.02 in interest payments. Let’s also look at a 72-month new car loan of $25,000 at a rate of 3.25% APR. By extending the term an additional year, the payments are now down to $382.64 per month for 72 months for “savings” of $58.29 per month. However, the 72 monthly payments of $382.64 come to a total of $27,550.40 paid on a $25,000 loan, for a total of $2,550.40 in interest payments; nearly twice the cost of the 60-month loan. Another factor to consider is the risk of becoming “underwater” in your loan. Shorter loan terms allow you to gain equity faster, and reduce the risk of you owing more than the car is worth, should you decide to trade it in. The moral of the story is that monthly budgets are important, but you need to look at the overall cost of a loan as well to make sure that is makes financial sense for you. On a related note, if you want a really low monthly payment without the risk of being caught underwater, you might want to consider leasing a vehicle. A lease allows you to borrow a vehicle for a period of time. Rather than paying to own the entire car, you merely pay for the time that you use the car. And when your lease is up, you have the option of either buying the car or just walking away. Leases generally have much lower monthly payments than even a long-term car loan, and carry none of the risk of being caught underwater.

Oct 20, 2016

The Ford Bronco is Coming Back!

The Ford Bronco was last released 20 years ago in 1996, after having lasted five generations beginning in 1966. Built in Ford’s Michigan Truck Plant in Wayne, Michigan, the Bronco began as a compact SUV. After 12 years in the compact SUV market, the Bronco underwent a massive change in 1978 when it was upgraded to a large SUV by using a modified F-Series truck chassis. The Ford Bronco II was a smaller version of the Bronco that was produced from 1983 until 1990 and was initially tied to the launch of the all-new Ford Ranger in 1983. The Bronco II was discontinued in 1990; it seems that the full-size Bronco was exactly what people were looking for! The Bronco remained a staple in the SUV world throughout the 1980’s and 90’s. It went through three more generations before appearing in its final incarnation, the 1992 to 1996 series. This fifth and final generation saw the addition of crumple zones, rear shoulder seat belt, driver-side airbags, and a third brake light installed in the top. Since this safety equipment was now integrated into the top of the Bronco, the top was no longer legally allowed to be removed and was secured with “tamper proof” Torx bolts. The Bronco was discontinued after the 1996 model year and replaced with the larger, four-door Expedition. The Bronco maintained a loyal following, and rumors have popped up many times over the past 20 years that the Bronco would make a triumphant return. Well this time, it’s official: the Ford Bronco is coming back! And will return to the US “ no later than 2020.” There has been a great deal of speculation regarding the exact configuration of the Ford Bronco. The version that retired in 1996 was last build on a shortened F-Series chassis, so many believe that the new Ford Bronco will also be based on an F-Series platform. Others maintain that the Bronco will use the chassis from the Ford Ranger, which, although is no longer available in the US, is still produced and sold internationally. If this is the case, the Bronco may well resemble the Ford Everest, which a 4-door SUV built on the Ranger platform and available internationally. An even smaller group of Bronco fans maintains that the Bronco will be based on the upcoming 2017 Ford Raptor. Speculation is equally divided as to whether the Bronco will feature its iconic two-door look, or if it will be a four-door SUV. If the two-door, there is a slight possibility that the new Bronco may resemble the Troller, a Brazilian made SUV currently build on the Ranger platform. At any rate, we know for sure that after more than two decades, the Ford Bronco will finally be coming back! In the meantime, check out some concept art of what the new Ford Bronco might look like and ask your local NH Ford dealer for more information! The most likely configuration of the 2020 Ford Bronco The Ford Bronco as imagined on the 2017 Ford Raptor platform A burly, blacked-out version of the Ford Bronco on a Ford Raptor platform The Ford Bronco as imagined based on the Ford Troller

Jun 22, 2016

2017 Lincoln Continental

The 2017 Lincoln Continental will be arriving at Irwin Lincoln, so you can arrive in style The all-new 2017 Lincoln Continental is being built by a dedicated team of engineers and designers who are committed to providing the very highest levels of quality, design, and personal service. The Continental hopes to attract young, successful, well-educated people to the Lincoln brand. The 2017 Lincoln Continental will feature a wide variety of configurations, with three engines to choose from, and your choice of front-wheel drive, or Intelligent All-Wheel Drive. The available engines are: a naturally-aspirated 3.7L V6, a turbocharged 2.7L V6, and a turbocharged 3.0L V6 which features Lincoln Drive Control as well as Dynamic Torque Vectoring. The Lincoln Continental will be available in rich, luxurious colors such as: Black Velvet, Burgundy Velvet Metallic, Black Diamond Metallic, Ingot Silver Metallic, Jade Metallic, Magentic Metallic, Midnight Sapphire Metallic, Palladium Gold Metallic, Ruby Red Metallic Tinted Clearcoat, and White Platinum Metallic Tri-coat. These beautiful colors are nicely accented by your choice of 18-, 19-, or 20-inch aluminum wheels that are available either painted or polished. Lincoln understands that the young, successful professionals for whom they designed the Continental value technology. With that in mind, here are just some of the options that the 2017 Lincoln Continental has available: enhanced active park assist, lane-keeping system, SYNC 3 with voice-activated Navigation, 360-degree camera, pre-collision assist, rain-sensing wipers, heated and cooled seats, heated steering wheel, premium LED headlamps, Revel Ultima Audio with 19 speakers, and much, much more. Because no luxury car would be complete without a driver’s seat of unparalleled comfort and repose, the design team spared no expense in making the Lincoln Continental’s seat. The 2017 Lincoln Continental features a 30-way throne of comfort that can be finely adjusted to suit a driver's comfort levels, says Johnathan Line, advanced seat-innovation supervisor and global technical expert for seating. And surprisingly enough, the 30-way seats aren’t bigger than conventional seats; in fact, they actually use less foam, thanks to a flexible suspension system that provides the support typically offered by thicker cushioning.

May 26, 2016

2017 Lincoln MKZ for sale at Irwin Lincoln

The completely redesigned 2017 Lincoln MKZ is now available for sale at Irwin Lincoln! This striking new model takes bold new cues from the upcoming 2017 Lincoln Continental , most notably the grille and front fascia When equipped with an available 3.0L V6 engine, the 2017 Lincoln MKZ is projected to achieve 400 horsepower and 400 pound-feet of torque! That is some serious get-up-and-go, and it helps the MKZ live up to its tagline: Power With Purpose In keeping with Lincoln’s proud tradition of fine craftsmanship and superior attention to detail, the cockpit boats a Wollsdorf-leather-wrapped steering wheel, more sculpted and tighter pillar and door-trim work, optimized speaker placement and high-end interior surface materials. The available Revel Ultima System includes 20 HARMAN speakers for a luxurious auditory experience Lincoln prizes safety as much as it does luxury, and with that in mind, it offers available Pre-Collision Assist with Pedestrian Detection. This safety package combines radar and camera technology to help prevent accidents. It is especially useful in busy urban settings like Boston The 2017 Lincoln MKZ features a fully retractable panoramic glass roof for a thrilling sense of freedom and enjoyment To learn more about the 2017 Lincoln MKZ and the upcoming 2017 Lincoln Continental, please contact one of our dedicated product specialists. Or better yet, come visit us in person at 59 Bisson Avenue in Laconia, NH!

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