I keep seeing encountering people who are struggling with their budget but have some ridiculous car payment. Let’s have a little discussion for people who are looking to buy a car. Here’s some advice I’ll give. Your mileage may vary (oh yes I went there). This advice is in USD but works anywhere.
Don’t get stuck holding the bag on a car that depreciates faster than you pay it off. I’ve done the math at a bunch of different interest rates, and the bottom line is that 48 months is the magic number for loan terms. At 4 years or below, you’re typically safe. Maybe you can push the boundary at super low interest rates, but there are other reasons not to finance for too long, including risk of financing a used vehicle for longer than expected reliable service life.