I need some input. We purchased a 2016 Range Rover sport yesterday. When we went into the finance office we were offered 2 options by Chase. 9.5% for 72 months financing or 3.5% for 60 months? Of course we were focused on the lowest APR possible and we are ok with the payment but why such a vast difference between the 2? Really hoping we didn't make the wrong decision
Congratulations on your new Range Rover! 👍
The car payment should have been almost the same with a 6% difference in APR.
If it was more than a $25 difference, something is wrong.
Due to age and brand of the car, it makes sense that the 72 month would have higher APR, 6% difference is quite a bit though.
If you can afford it, the lower APR is the right choice.
What was the payment difference?
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Common for many lending institutions to have higher rates as loan terms becomes longer.
From one of my CU's
Due to age and brand of the car, it makes sense that the 72 month would have higher APR, 6% difference is quite a bit though
You made the correct decision !
6% is a very very large difference for a one year longer loan.
Smart to not take that offer.
Payment was virtually the same (give or take $20 or so) so we went with the 5 year option for the lower APR.
Dealers and banks are offering longer terms. Consumers keeping cars longer. The longer the term, the higher the rate. 6% is high, but not uncommon. The longer the loan, higher risk of default. You chose right. Enjoy your Rover. 😊
The bank probably figured at any longer than the 60 months, you'd be spending all of your money on maintenance and not have any money left for them 🤷🏻♂️