Avoid Pitfalls on Auto Trade-Ins Resist the urge to buy a new car if you still owe money on your old one. Our financial consultant says you may save money in the long run if you choose a a shorter term loan when you're buying a car.
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Avoid Pitfalls on Auto Trade-Ins

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Avoid Pitfalls on Auto Trade-Ins

Avoid Pitfalls on Auto Trade-Ins

Avoid Pitfalls on Auto Trade-Ins

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  • <iframe src="https://www.npr.org/player/embed/10512478/10512479" width="100%" height="290" frameborder="0" scrolling="no" title="NPR embedded audio player">
  • Transcript

Taking out a car loan for longer than four years is rarely a good idea.

Consumers often tire of their cars soon after the new car smell wears off, and they often consider trading in their wheels before it is even paid for.

Our personal finance contributor talks about why that is a bad idea, and explains how you can end up being "upside down" on a car loan.