In an effort to attract more buyers through lower monthly payments, major lenders and automakers – from Bank of America to Digital Federal Credit Union to Ford Motor Credit – often offer auto loans as long as 72 months.
Here at 72MonthAutoLoan.com, we have partnered with the leading auto lenders and dealerships across the country to help you find the auto loan you need. To apply for one of these 72 month auto loans, all you have to do is submit your credit application through our secure application placement system. Based on factors such as your location, credit history, income, and down payment, our system will attempt to match you to the most suitable lender.
72 Month Car Loans: The Benefits
- Decreased Payment Per Month: in comparison with a traditional 48 or 60 month car loan of equal amount, the monthly payments on one of these 6 year auto loans will be significantly lower. This is simply because the principal amount will be divided into a greater number of payments.
- Same Payment, More Car: on the other hand, given the same interest rate and dowon payment, the same monthly payment on a 72 month auto loan will amount to a vehicle of far greater worth than if you financed for 36, 48, or 60 months. For instance, if you have $350 per month to spend, you could finance about $21,400 for 72 months, but only about $15,000 for 48 months.
72 Month Car Loans: The Downsides
- More Interest Paid: the longer the auto loan, the more you’ll pay in terms of interest. You will simply be paying interest to the auto lender for a greater amount of time, and in some cases auto lenders charge higher rates of interest on longer loans. This means that, at the end of the day, you will pay more for the same vehicle than you would with a shorter finance period.
- Greater Risk of Negative Equity: also known as being “upside down” on your auto loan, this is a dreaded situation for many borrowers. It simply means that you owe more for your vehicle than it is worth. This can prove problematic if, for instance, your vehicle is totaled in an accident, as your insurer will only pay you the vehicle’s current worth. The same issue arises if you want to trade in your vehicle. The problem is depreciation. Three years into a 4-5 year auto loan, you have paid back more than your vehicle is worth. With a 72 auto loan, this is a longer process. For this reason, it is good to provide a substantial down payment. Down payments defend against depreciation and negative equity, because they allow you to finance less than the vehicle is worth. This puts you in a positive equity situation from the get-go.
Opting For 72 Month Auto Financing is Best if:
- You don’t mind driving your vehicle until you’ve paid it off. If you are one of those people who gets the fever for a new car every 1-2 years and absolutely HAS to trade in their existing vehicle, a 72 month car loan could prove problematic.
- You are pretty certain you will not NEED to trade in this vehicle in 1-2 years due to a growing family, changing work needs, etc.
- Your finances are fairly stable, and the monthly payments are well within your budget. You don’t want to sign your name to a 6 year auto loan if it taxes your finances.