Your finance term: How long is too long?

It’s an issue that’s coming up quite a lot lately - car finance terms as long as 72, 84 or even 96 months. Choosing a longer finance term helps to reduce your monthly instalments but there’s a trade-off because you pay more interest in total. So it’s important to have a clear understanding of how it all works so you can avoid the pitfalls. Lebo Gaoaketse, WesBank's Head of Marketing and Communication, tackles this topic and answers real questions from consumers. 

The information does not constitute financial advice and is not to be acted on as such. Please consult your bank or an accredited financial advisor before making financial decisions.

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Chapters

• 0:39 Why are car loans going as long as 84 or even 96 months now?
• 1:23 What’s the risk of taking such a long loan if I plan to change cars in 3–5 years?
• 2:01 I’m going to keep the car long-term, doesn’t it make sense to take a long-term loan?
• 2:32 But if I can afford the monthly payment, what’s the problem?
• 3:04 Would a balloon payment make things better for me than a long finance term?