So glad you're with us here on the Clark Howard Show where it's about you and your wallet.

I want you to learn ideas to me so you can keep more of what you make.

Coming up later, what do you make?

Well, I need to talk to you about that and how that works over your working lifetime.

So I have been tied up in knots about the extremely long vehicle loans that Americans are taking

out.

That when people are buying a vehicle, it's not unusual that people take out a loan as long

as many cases six or seven years, 72, 84 months.

Think of it six or seven years.

I know there are people who think my answer to this is ridiculous, but my answer is you

never take out a loan longer than 42 months.

If you do, it means you're buying more vehicle than your budget can handle.

Because if you can't afford the payment at 42 months, it means you need to buy a cheaper

vehicle.

I may not want to hear that, but listen to this.

The number of Americans with an outstanding vehicle loan has doubled in roughly the last

15 years because what people used to do is they take out a relatively short loan and

they'll be paid off and then they'd have year after year after year driving with a vehicle

that is paid off.

It's not truly driving for free, but at least you're not having to pay a monthly payment

every month.

It's sitting there just waiting to hit you right in the wallet every 30 days.

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