I will be financing* the purchase of a brand new car that I plan to keep for 3 years. Based on this I am trying to understand how to structure the loan variables (term, rate) appropriately.
Should I get a loan that lasts only as long as I plan to keep the car? Or how should I think about this? One problem with getting a 3 year (36 months) loan is that my payments are very high.
So I am looking for advice on how I should be configuring my loan.
*Note: A lease is not an option in this case.
UPDATE: I wanted to provide more context to my question. I'm already decided that this car will be brand new and I will keep it for a limited period of time, e.g 3 years. Those are not variables that will change. For the purposes of this question I am thinking of this car as one might consider a Tesla (although it is not a Tesla) - that is, I have the following ideas in mind:
- I am buying a piece of technology on wheels (similar to a Tesla) and as such it's future value is highly unknown, given the pace of tech
- I am an early tech adopter and since tech moves so fast, I am going to want the latest and greatest version of that model after this one. That's why I plan to hold for a short period of time.
- For the purposes of this question I am not considering a lease as an option.