They're here. Zero percent 72 month auto loans are now being offered by the Ford Motor Company in a bid to expand its customer base. Ford desperately needs to do something as sales are down and market share continues to plummet. However, should you opt for a 72 month long car loan? Read on and we'll explore how this type of loan can be good for one person but very bad for another.



Low Monthly Payments ? By offering 6 year loans Ford is hoping to attract customers who might have otherwise purchased and financed a used car. With monthly rates low enough, these types of loans could very well open up new car financing for those who otherwise would not have been able to make payments.

Upside Down ? Unfortunately, there is a big downside to financing a car for 6 years especially if the down payment was low or nonexistent. As all vehicles immediately depreciate once they leave the dealer's lot, right away car owners are faced with a deficit: their loan is worth more than the car. For more than half of the time that the car is owned borrowers are ?upside down? in their loan. This means if they were to sell the car or trade it in, they wouldn't get enough money on the car to pay off the loan. For the person who plans on keeping the car for the long term then that shouldn't be a problem; for mostly everyone else it could be one.

A Plus Side ? On the other hand, if you are a consumer who can pay cash for their car or put a significant amount of money down on the vehicle then by all means let Ford finance your car. Then, stash your cash in a liquid savings account and watch it grow. If your loan is for $25,000 then in six years you could see your savings increase to $33,000. You get a zero percent interest rate loan while your money goes to work for you.

Not mentioned are the motorists who qualify for the loan, but really shouldn't get one. You see, they are borderline borrowers who could quickly find themselves in deep trouble if their financial condition changes. With high gas prices in place and rising medical costs taking their toll, this type of borrower needs to think clearly before committing to a loan no matter how good it looks on surface.