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Should I Get a 144-Month Auto Loan?

Should I Get a 144-Month Auto Loan?
Sulaiman Abdur-Rahman
Sulaiman Abdur-RahmanUpdated May 9, 2022
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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.
Consumers may consider a 144-month auto loan to finance the purchase of classic and exotic cars. These vehicles may carry a sales price above $100,000. Auto loans with 12-year terms can make it easier for consumers to buy ultra-luxury brands like Aston Martin, Ferrari, and Lamborghini.Buying a six-figure car is a personal choice, and getting a 144-month auto loan to finance that car might make sense for some borrowers. Car loans can have repayment terms as low as 12 months and as high as 180 months or 15 years.Longer terms may include higher interest charges and lower monthly payments compared with shorter terms. For example, getting $100,000 in auto loan financing at 6% interest would cost $975.85 monthly under a 12-year term and $1,657.29 under a six-year term.It might make more sense to get a shorter term if you can afford a higher monthly payment. That’s because consumers with 12-year auto loan terms may end up paying tens of thousands of dollars in interest over the life of the loan. Below we highlight some of the pros and cons of getting a 144-month car loan.

Getting a 144-Month Auto Loan to Buy Your Car

Getting a 144-month auto loan to buy your car could be an option if you’re looking to own a classic or exotic car brand. Lenders may offer 144-month auto loans to finance ultra-luxury vehicles with retail prices above $100,000.As mentioned earlier, getting $100,000 in auto loan financing at 6% interest would cost $975.85 monthly under a 12-year term and $1,657.29 under a six-year term. If you need $100,000 in car loan financing and cannot afford monthly payments above $1,000, the 144-month auto loan might be right for you.Lenders generally charge interest when financing six-figure vehicles. If you need $100,000 in car loan financing and could afford monthly payments up to $2,000, a shorter term might serve you better. Loans with shorter repayment terms usually have lower interest costs than loans with longer repayment terms.Paying interest over the life of a loan can add up. If you get a $100,000 car loan with a 6% interest rate and 12-year term, you may pay $40,522.43 in total interest over 144 months. You may pay $19,324.79 in total interest over six years if you get similar financing on a 72-month loan term.

When to Consider a 144-Month Loan 

You may consider a 144-month car loan at any time, particularly if you’re interested in buying a six-figure car. The way how car loans work is that lenders give borrowers financing for the purpose of buying a motor vehicle.Here are some factors to consider:
  • Car loans with 12-year terms are particularly rare, but private lenders may offer them when financing classic or exotic vehicles
  • Getting a 144-month loan to finance high-mileage used car models could be difficult, although some lenders may be willing to finance such vehicles
  • A private party auto loan can provide you with financing to buy a new or used vehicle from a private person selling a car
  • Lenders may have general car loan requirements that require borrowers to provide proof of income and proof of identity when applying for financing

Can I Get Financing for an Exotic Car for 144 Months?

Creditworthy borrowers can get financing for an exotic car for 144 months. Some lenders even offer 180-month car loans to help consumers buy $200,000 vehicles. You may need steady income, a base FICO® Score above 700, and an established credit history to qualify.

Can I Get a 144-Month Auto Loan on a 10-Year-Old Car?

Creditworthy borrowers can get a 144-month auto loan on a qualifying 10-year-old car. Some lenders may require the vehicle to be a 10-year-old Aston Martin, Bentley, Bugatti, Ferrari, Lamborghini, Lotus, Maserati, McLaren, or Rolls-Royce car model. Getting a 12-year car loan on a 10-year-old economy car can be difficult but not impossible. Economy cars are generally small vehicles with more affordable price tags than luxury or premium vehicles.Recommended: 84-Month Auto Loans: Pros and Cons

144-Month Car Loan: Pros & Cons

The below table highlights some of the pros and cons of 144-month car loans:
Pros of 144-month car loansCons of 144-month car loans
Can help consumers buy classic and exotic carsMay require good credit to qualify
Minimizes a borrower’s monthly paymentLenders may require a 20% down payment on the car
Repayments are spread out over a 12-year spanInterest costs can be high

Pros of a 144-Month Auto Loan

Below we describe some of the pros of a 144-month auto loan:

Investment

A 144-month auto loan can help consumers buy exotic vehicles as an investment. Exotic vehicles may appreciate greatly in value over time, according to Bugatti. This means owning an exotic vehicle may help you build wealth, which can partially or fully offset the cost of a 144-month loan.Used vehicle prices in 2021 have appreciated at record rates thanks to global supply chain bottlenecks fueled by the Covid-19 pandemic, according to the National Automobile Dealers Association or NADA. That includes exotic cars and economy vehicles that might have otherwise depreciated in value.

Cost

Even if you can afford to buy an exotic car without borrowing money, paying that cost up front can deplete your savings. A 144-month auto loan would spread that cost over a 12-year period. Minimizing your upfront costs may preserve your savings or allow you to invest your savings elsewhere.

Affordability

A 144-month auto loan can promote affordability in the exotic car industry. The monthly payment on a 144-month auto loan would be substantially lower than buying the same vehicle on a 72-month repayment schedule.

Cons of a 144-Month Auto Loan

Below, we describe some of the cons of a 144-month auto loan:

Lack of Options

Getting a 144-month auto loan may require you to buy a classic or exotic vehicle with a $100,000-plus sales price. Such restrictions can leave you with a clear lack of options, particularly because exotic cars represent a small niche of the overall auto industry.The ultra-luxury brand Aston Martin, for example, sold 6,178 vehicles to its wholesale dealers in 2021. Toyota Motor Corporation, meanwhile, sold more than 9.6 million vehicles under its Toyota and Lexus brands in 2021. The luxury Lexus brand accounted for 760,012 of those worldwide sales, data show.

Interest Rates

Lenders may charge higher interest rates on a 144-month auto loan compared with shorter-term car loans. The annual percentage rate of interest on a 144-month new car loan could range from 5.74% to 11.24%, while the APR on a 48-month new car loan can range from 2.99% to 8.49%.As mentioned earlier, getting a $100,000 car loan with a 6% interest rate and 144-month term can translate into $40,522.43 in total interest over 12 years. Some car loans with shorter terms may have APR as low as 0%. Lenders may charge higher interest rates on used vehicles compared with new vehicles.

Depreciation

An economy car financed by a 144-month auto loan could potentially depreciate in value over the 12-year repayment period. Some lenders may offer 144-month car loans on non-exotic vehicles, and those vehicles historically experience significant depreciation over time. 

144-Month Auto Loan Credit Unions

Some credit unions may offer 144-month auto loans on new and used vehicles. Some of these credit unions may finance economy vehicles under $40,000.

144-Month Auto Loan Lenders

Lenders of 144-month auto loans can include credit unions and private finance companies. Some of these lenders may specialize in the financing of classic and exotic vehicles.Lenders may offer secured and unsecured auto loans. A secured car loan uses the financed vehicle as collateral, whereas unsecured car loans have no collateral requirement. Lenders may repossess your vehicle if you default on a secured auto loan.

Alternatives to a 144-Month Auto Loan

Here are some alternatives to a 144-month auto loan:

Buying the Car With Cash

Instead of borrowing funds from a lender, buying the car with cash is an option for consumers with sufficient money in the bank. One of the advantages of buying the car outright is it gives you 100% equity in the vehicle and the certificate of title.

Refinancing the Car

If you already have a 12-year auto loan, you may qualify for auto loan refinancing. Refinancing pays off the original loan agreement and replaces it with new loan terms. Borrowers can refinance auto loans almost immediately.Here are some auto refinance factors to consider:
  • In terms of when to refinance a car loan, the right time for you to refinance may be whenever you can secure a lower interest rate or whenever you need a lower monthly payment
  • The cons and pros of refinancing a car are something you may consider when evaluating whether to seek an auto refinance loan
  • The cost to refinance a car may include a number of fees that can be a dealbreaker for some consumers
  • Refinancing can help borrowers get a lower interest rate, but refinancing may also cause a borrower’s credit score to dip from a hard pull credit check

The Takeaway

Getting a 144-month auto loan has certain advantages and disadvantages. The 12-year repayment schedule may feature an affordable monthly payment, but borrowers may also pay high interest costs over the life of the loan.Lantern by SoFi can help consumers find top lenders for refinancing a car. Refinancing can replace your existing loan agreement with new terms that may lower your interest rate.Check your rate today and see if you prequalify.

Frequently Asked Questions

Can you finance a car for 144 months?
Does refinancing your car loan for 144 months make it cheaper?
Should you use a 144-month auto loan to refinance your car?
Photo credit: iStock/Ankit Sah
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About the Author

Sulaiman Abdur-Rahman

Sulaiman Abdur-Rahman

Sulaiman Abdur-Rahman writes about personal loans, auto loans, student loans, and other personal finance topics for Lantern. He’s the recipient of more than 10 journalism awards and served as a New Jersey Society of Professional Journalists board member. An alumnus of the Philadelphia-based Temple University, Abdur-Rahman is a strong advocate of the First Amendment and freedom of speech.
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