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Some lenders and credit unions, however, offer extended loan terms of anywhere from 96 months (eight years) to 120 months (10 years). Although the lower monthly payment may seem attractive, a decade-long auto loan could leave you paying for a vehicle that’s worth very little 10 years from now.
Is it smart to do a 72-month car loan?
Is a 72-month car loan worth it? Because of the high interest rates and risk of going upside down, most experts agree that a 72-month loan isn’t an ideal choice. Experts recommend that borrowers take out a shorter loan. And for an optimal interest rate, a loan term fewer than 60 months is a better way to go.
Can you go 7 years on a car loan?
If you’re shopping for a new or used car, you may consider taking out an 84-month auto loan, which is a term of seven years. Before you go this route though, you should understand why this kind of loan can be risky — and whether alternative financing might be a better option.
What is the longest finance term for a car?
The longest term available for an auto loan is 10 years, or 120 months. A loan of this length will result in a low monthly payment, but the savings may be eclipsed by the huge interest costs. Also, note that most lenders do not offer 10-year auto loans.
Can you go 10 years on a car loan? – Related Questions
How long does it take to pay off a $30000 car?
With a loan amount of $30,000, an interest rate of 8%, and a loan repayment period of 60-months, your monthly payment is around $700. Before you purchase your new vehicle, remember to budget for car maintenance, gas, and car insurance.
What is considered a high car payment?
According to experts, a car payment is too high if the car payment is more than 30% of your total income. Remember, the car payment isn’t your only car expense! Make sure to consider fuel and maintenance expenses. Make sure your car payment does not exceed 15%-20% of your total income.
What is a good interest rate for a 72 month car loan?
The average 72-month auto loan rate is almost 0.3% higher than the typical 36-month loan’s interest rate for new cars.
Loans under 60 months have lower interest rates for new cars.
| Loan term |
Average interest rate |
| 60-month used car loan |
4.17% APR |
| 72-month used car loan |
4.07% APR |
What credit score do you need to get a 84 month car loan?
There is no set credit score you need to get an auto loan. If you have a credit score above 660, you will likely qualify for an auto loan at a rate below 10% APR. If you have bad credit or no credit, you could still qualify for a car loan, but you should expect to pay more.
How long is a 84 month loan?
An 84-month auto loan stretches the repayment period to seven years. Your lender amortizes your loan over this term to determine how much you pay each month in principal and interest. For example, consider a $20,000 auto loan with a 3.49 percent interest rate.
Is 5 years car loan too long?
For a long time, three- or five-year car loans were the norm. But more and more people are choosing longer-term auto loans. In the fourth quarter of 2021, the average loan term for new-car loans was nearly 70 months, according to the Q4 2021 Experian State of the Automotive Finance Market report.
What is an average car payment?
The average monthly car payment for new cars is $667. The average monthly car payment for used cars is $515. 38.22 percent of consumers financed new vehicles in the second quarter of 2022.
How much should I put down on a 25000 car?
The Vehicle’s Price Determines How Much Cash You Should Put Down
| Vehicle Price |
15% Down |
25% Down |
| $25,000 |
$3,750 |
$6,250 |
| $30,000 |
$4,500 |
$7,500 |
| $35,000 |
$5,250 |
$8,750 |
| $40,000 |
$6,000 |
$10,000 |
Is getting a car loan worth it?
Financing a car may be a good idea when: You want to drive a newer car you’d be unable to save up enough cash for in a reasonable amount of time. The interest rate is low, so the extra costs won’t add much to the overall cost of the vehicle. The regular payments won’t add stress to your current or upcoming budget.
What should you not say to a car salesman?
5 Things to Never Tell a Car Salesman If You Want the Best Deal
- ‘I love this car. ‘
- ‘I’m a doctor at University Hospital. ‘
- ‘I’m looking for monthly payments of no more than $300. ‘
- ‘How much will I get for my trade-in? ‘
- ‘I’ll be paying with cash,’ or ‘I’ve already secured financing. ‘
Does financing a car build credit?
The good news is financing a car will build credit. As you make on-time loan payments, an auto loan will improve your credit score.