Beaumont, Texas — Fans have a long history of using premium car payment plans.
For the past decade, premium car financing has been the way to go for many, as many people rely on the industry to get their finances in order.
But new research suggests the car payment plan may be a bad idea for some of those who buy their cars with a car loan.
And that could have a real-world impact on the health of millions of consumers, according to a new study.
“The cost of premium car finance could be significant to consumers with modest car equity and limited access to credit, said the study by University of Texas researchers.
The study, published in the Journal of Consumer Research, analyzed data from 1,547 Texas consumers who used a car payment loan.
The researchers found that those who used car payments had more than $20,000 in outstanding car loans and nearly a quarter of the consumers had more $30,000 or more in outstanding auto loans.
Of the people who used the car payments, nearly 60 percent said they were not able to afford a new car.
Car payments have long been considered a way for people to pay off credit cards and other loans.
But the study shows the use of car payments is not always the most cost-effective way to pay back the loans.
For example, the study found that people who use car payments have less credit scores and are less likely to be able to get credit counseling or auto financing.
If you are thinking about a car payments plan and you don’t have the financial means to repay, consider a car purchase financing account, said Dr. Michael Moseley, the lead author of the study and a professor at the University of Southern California.
In addition, many consumers who use a car insurance plan don’t even know that they can pay back their loan if they lose their job, he said.
One of the main concerns is that the average monthly payment may be too high compared to the amount they could have gotten through the car loan, he added.
While many car payment users are in the middle of a car finance program, they can often use other forms of financing like credit cards, he noted.
Many car payment buyers who aren’t eligible for a car credit plan would be better off switching to a car financing account or a car loans credit card, he continued.
Even though many people use car insurance to pay down their debt, some of them are paying more than the interest rate, Mosely said.
If you are in this situation, make sure you have the right car payment options to help you pay off your loan, Midely said in a phone interview.
This is a developing story and will be updated.