So, you’re thinking about financing a car and the dealer just threw the idea of a 100-month loan your way. It sounds tempting, right? Lower monthly payments can make that shiny new ride feel a whole lot more attainable. But before you jump in with both feet, let’s chat about why this might not be the golden ticket you think it is. Here are six ways those long-term loans can backfire on you.

1. You’ll Pay a Lot More Interest

Let’s get real: the longer you take to pay off a loan, the more interest you’re going to rack up. With a 100-month loan, you’re looking at a long haul—nearly eight and a half years! That means you could end up paying thousands more in interest compared to a shorter loan. Sure, those monthly payments might look pretty, but they could cost you way more in the long run. It’s like choosing a small coffee now and finding out you could’ve had a whole pot for just a little more. Ouch!

2. You’ll Be Upside Down on Your Loan

Picture this: you drive off the lot, and just like that, your car depreciates. New cars lose value fast—some estimates say around 20% in the first year alone. If you’re locked into a 100-month loan, chances are high you’ll owe more than the car is worth for quite a while. Being “upside down” on your loan can lead to serious headaches if you ever decide to sell or trade in. It’s like buying a brand new smartphone, only to find out the second you walk out of the store it’s already outdated.

3. Your Car Could Be Outdated Before You’re Done Paying

Let’s face it: technology moves fast. If you’re driving a car for nearly a decade, you might find yourself stuck with features that make you feel like you’re driving a dinosaur. While your friends are zipping around in their electric dream machines, you might be stuck with a ride that has a cassette player (remember those?). A 100-month loan could mean you’re paying for an outdated vehicle long after the new models have taken the market by storm.

4. It Encourages Bad Financial Habits

Long-term loans can create a false sense of security when it comes to finances. Sure, that low monthly payment feels nice, but it can lead to overspending. You might find yourself thinking, “I can afford this car,” when in reality, you could be stretching your budget too thin. It’s like thinking you can eat that entire pizza by telling yourself, “Hey, it’s just one slice at a time!” Yeah, until you realize you’ve eaten the whole thing and now you feel awful.

5. You Might Miss Out on Better Deals

With a long loan term, you might find yourself locked into a car that you’re not thrilled about for a long time. Meanwhile, new financing options or better deals could pop up, but you won’t be able to take advantage of them. It’s like standing in line for concert tickets and realizing that your friend just snagged a VIP pass while you’re still waiting for general admission. You could miss out on something way better simply because you’re tied down to that long loan.

6. It Can Impact Your Credit Score

Your credit score is a bit like your adult report card, and it can take a beating with a long-term loan. If you’re struggling to keep up with payments because of that extended term, your score will reflect it. Even if you’re making those payments on time, having a large loan on your report can affect your credit utilization ratio negatively. Think of it as trying to juggle too many balls at once; eventually, something’s going to drop. And trust me, you want to keep your credit score in good shape for future purchases—like a house or that dream vacation.

Wrapping It Up

So, before you sign on the dotted line for that 100-month car loan, take a step back and consider the bigger picture. It might seem like a good idea now, but the long-term consequences could leave you feeling stuck and frustrated. If you can, try to aim for a shorter loan term that won’t keep you tethered to your car for what feels like an eternity. Your future self will thank you, and you might just find you enjoy the ride a whole lot more.