Are 84 Month Car Loans A Bad Idea?

The main reason to avoid an 84-month car loan: You’ll pay more interest.

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 to begin with.

Can you go 84 months on a car loan?

An 84-month auto loan can mean lower monthly payments than you’d get with a shorter-term loan. But having as long as seven years to pay off your car isn’t necessarily a good idea. You can find a number of lenders that offer auto loans over an 84-month period — and some for even longer.

What is the longest you can finance a car for?

In the final quarter of 2012, the average term of a new car note stretched out to 65 months, the longest ever, according to Experian Information Solutions Inc. Experian said that 17% of all new car loans in the past quarter were between 73 and 84 months and there were even a few as long as 97 months.

Is 7 years too long for a car loan?

While 7 years is a typical financing term, some car loans are as long as 10 years. Most people are so financially squeezed they live and die by monthly payments.

Is it bad to finance a car for 72 months?

Alarming car buying statistics

Auto loans over 60 months are not the best way to finance a car because, for one thing, they carry higher car loan interest rates. Experian reveals that 42.1% of used-car shoppers are taking 61- to 72-month loans while 20% go even longer, financing between 73 and 84 months.