BANDON, Ore. — Instead of looking at the full contract and interest costs, many consumers appear more concerned with how a monthly vehicle payment will fit into their budget. While this has been something dealers and F&I professionals have seen for some time, apparently this trend has grown since 2008, according to CNW Research.

The company found that from current-year 2000 to 2005, about 64 percent of individuals buying new vehicles selected longer contracts, such as 72, 84 or 96 months, for the lower payments.

But a shift began in 2006, CNW discovered.

"Topping 70 percent in 2007, for the first time since CNW began measuring these hyper-long payment schedules, this issue of payment soared in 2008 through the first half of this year. Currently, nearly 90 percent of those with a 72-plus-month contract say they selected it because the payment was low," said Art Spinella, CNW president.

So how long does it take to gain equity?

"Depending on payments and the length of the contract, equity doesn't happen overnight; but for long-term contracts, the wait is decreasing marginally over the past three years but is still higher than the original survey in 2002," explained Spinella.

Short-term, or 24-month contracts, have seen an increase in the length of time it takes to gain equity back in a vehicle. In 1997, it took 18.1 months. By 2010, it took 21.9 months for equity, up 3.8 months.

"Thirty-six month contracts haven't fared any better. In 1997, it took 29.4 months to get the vehicle to be worth more than the remaining payments. By 2010, that number increased to 34.6 months. A jump of 5.2 months. But mid-length terms — 48- and 68-month contracts — have contracted. Forty-eight month contracts have decreased by a tenth of a month over the last 13 years. Sixty-month contracts have decreased by 3.2 months," Spinella pointed out.

Ultimately, Spinella said, "Because of the recession, those with long-term contracts say they are happy they made that choice because payments are manageable when dollars are tight. Since current-year 2000, those who are 'very satisfied' with their lengthy repayment contract has edged up from 8.8 percent to over 10 percent.

"More impressive are those who say they are ‘somewhat satisfied,' steadily climbing from 19.4 percent in 2000 to over 26 percent this year. This also may reflect the fact that cars are lasting longer and remain trouble free for an extended time," he added.