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Whats wrong with 72 month car loans???

Established Member

Re: Whats wrong with 72 month car loans???

Agreed with geronimo.


I haven't seen longer terms be lower APR, it's usually the other way around.


I picked up a 66 month loan on my new purchase (buying tonight actually).  The logic behind this is, I make a ton of over time for large portions of the year so I plan on constantly making large payments on the principal.  This allows me to have a smaller monthly payment, and still get a 60 month interest rate, while being in a position to get out of a negative equity situation reasonably fast.  I also have GAP coverage through my auto insurance during this policy period, which I won't need in 6 months.

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Message 11 of 15
Frequent Contributor

Re: Whats wrong with 72 month car loans???

yeah, for APR to be lower with longer terms would go against everything that is normal and proper in the world of finanace

The risk of lending longer is met with charging a higher interest


Persnoally, I dont like being in debt and cant't help but pay extra.  On the other hand, I'm not disciplined enough to pre save and pay cash. 

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Message 12 of 15
Regular Contributor

Re: Whats wrong with 72 month car loans???

If you are on an fixed income, it's all about the monthly payments.  But of course, you'll be able to make payments without the fear of losing a job....

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Message 13 of 15
Valued Contributor

Re: Whats wrong with 72 month car loans???


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Message 14 of 15
New Contributor

Re: Whats wrong with 72 month car loans???

Longer loan term will mean higher interest. Which in turn means more interest paid.. Less on monthly payment.. When I buy a car I finance it for longest with lowest APR. so if dealership is offering 1.9 for 60 months or 2.9 for 84 months I'll go with the 2.9 for 84 months.. I'll also never go with a down payment unless I must.. All vehicle loses value.. When off lot.. Do nothing down and buy gap insurance thru dealership(which cost more) or thru ur insurance company if they offer.. Why not spend a few hundred for gap program instead of putting a large amount down to cover the lost value of vehicle when u drive it off lot?? Yes gap isn't paid to u but it actually help u.. Let say u bought a car for 80000 u financed whole vehicle.. U got into an accident 3 months later vehicle is totaled. Insurance going to only pay out 65000. If u have gap.. Gap will cover the difference.. If u don't have gap u will pay for it out of ur pocket.. So to me gap is great.. If so happens u did a 15000 down payment.. Now ur down payment is gone.. So why not spend the 600-1200 for gap??

Message 15 of 15