How Long Should Your Auto Loan Be?

When financing a car today you have many options on the type of auto loan you can choose, there are 24, 36, 48 and even 60 month loans available. More buyers today are financing their car for 60 months or more. Such a loan will give you a lower monthly payment but you will pay more interest over the life of the loan. You may also find it harder to qualify for a longer loan, as lenders require top notch credit for extended repayment terms. 

Are Lower Payments Worth the Extra Interest?

The question you will need to answer is if an auto loan with lower monthly payments will be worth the costly extra interest you will pay over 60 months. With qualifying for a longer auto loan being harder, shopping online will be one way to find and obtain a 60 month auto loan. Shopping around to find the best auto loan no matter how many months you plan to finance it for is the best way to get the most for your money.

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