Is A 72 Month Car Loan A Good Idea. You should try to avoid a 72-month loan for several reasons. Even if that doesnt sound so bad after all youll stick to your monthly.
Thats nearly three quarters of new loan originations that stretch beyond the more conventional 60-month. Assuming your credit is good you may be able to refinance your auto. A 72 month used car loans means you are planning on keeping your car for six years at a minimum.
The length of your loan will affect the interest rate and how quickly you build equity.
Drawbacks of 72- or 84-month auto loans. This stems from the fact that a used cars value will depreciate at an accelerated pace. Because these loans tend to be targeted at people with less-than-stellar credit they often carry higher interest rates than three- or five-year loans. You will actually have a lower payment with your own loan rebate.
