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Longer-Term Loans Causing Consumers to Purchase Nicer Cars

Automobile dealerships and automakers alike are enjoying a surge of increased sales as a result of 72-month loans becoming more popular. Consumers tend to look at the longer loan terms and better interest rates without taking into account the overall cost of the vehicle. With the false sense of financial security consumers feel when they see what they believe to be improved loan rates, more and more have opted to go for vehicles with full packages. In addition, the sales of SUVs and CUVs have increased by a whopping 24% margin and 14% margin respectively. These numbers compared to the flat growth rate of sedans goes to show the extent of impact generous loan rates are having on the average consumer’s willingness to buy. Not only are people buying nicer cars, the cars that they buy are usually filled with extra features such as GPS and leather seats. This trend is definitely beneficial to auto manufacturers and dealers because the rate at which vehicles are being sold is increasing consistently.

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