Guide to Long-term Car Loans: 72 and 84-Month Auto Loans
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What Is Considered a Long-term Car Loan?
Potential Benefits of 72- and 84-Month Auto Loans
Lower Monthly Payments
Ability to Purchase a More Expensive Car
More Chances to Refinance
A More Flexible Monthly Budget
Paying down high-interest debt Putting away funds for retirement Contributing to an emergency fund for unexpected expenses
0% Interest
Does the loan use simple interest or precomputed interest? Is the loan interest-free with 0% APR? Does the loan have a fixed interest rate or a variable rate?
Risks and Downsides of 72- and 84-Month Car Loans
Overall Higher Cost
Higher Interest Rates
Risk of Going Upside Down on the Loan
A Lot Can Happen in 72 to 84 Months
Lack of Flexibility
Summary of the Pros and Cons of 72- and 84-Month Auto Loans
6 Alternatives to Long-Term Car Loans
1. Purchase a Less Expensive Car
2. Choose a Used Car
3. Make a Bigger Down Payment
4. Lease a Car Instead
5. Make Higher Monthly Payments
6. Get a Cosigner
Short-term vs Long-term Auto Loans
When You Might Consider a 72- or 84-Month Auto Loan
The Takeaway
Frequently Asked Questions
Photo credit: iStock/Sean_Kuma
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About the Author
LeeMarie Kennedy is a Boston-based copywriter and content creator with over a decade of experience writing for a variety of publishers, institutions, and corporations. She has spent the last few years focusing on writing for financial services, technology, HR and TA, and health & wellness sectors. LeeMarie has a BA in Journalism from Quinnipiac University and a MS in Organizational Communication from Northeastern University and was an original contributor to The Daily, SoFi's newsletter.
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