Is a 60 month car loan bad Reddit?

Is 60 months good for a car loan Reddit?

Either is fine. Just don’t let the lower payments of the 60-month loan trick you into getting a more expensive car. If you can’t afford payments on a 36-month loan, you cannot afford the car, even if you can lower payments by getting a 60-month loan.

Is a 60 month car loan bad?

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.

Is 60 months good for a car loan?

They are trying to get a good interest rate and a reasonable monthly payment. But a five-year loan often has a monthly payment that is too high for them, and they end up financing for a longer term even if it costs them more down the line, Zabritski said. … Edmunds recommends a 60-month auto loan if you can manage it.

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Is a 5 year car loan too long Reddit?

Most car loans are 3 to 5 years. Some lenders now offer 6- and 7-year loans, those are the ones that are considered to be ridiculously long. A 3-year car loan is plenty short enough. Although if you have the money you can and should pay it off even faster than 3 years.

How do I know how much to spend on a car?

We’ll look at a few popular methods for determining how much you should spend:

  1. No More Than 15 Percent of Your Monthly Take-Home Pay. …
  2. Half Your Annual Salary. …
  3. 36 Percent of Your Income Devoted to Debt Payment. …
  4. The 20/4/10 Rule. …
  5. A Trial Period of Making Payments to Yourself. …
  6. Know Your Expenses / Subscription Services.

6.03.2019

Is 48 months good for a car loan?

Car dealers these days are all too happy to stretch out the terms to 72 and even 84 months to get the payment you want. … All in all, I think that you should strive to use a 36 or 48 month loan because you will pay less interest and it will “help you” buy a car that you can better afford.

What is a good APR for a car?

What is a good APR for a car loan with my credit score and desired vehicle? If you have excellent credit (750 or higher), the average auto loan rates are 5.07% for a new car and 5.32% for a used car. If you have good credit (700-749), the average auto loan rates are 6.02% for a new car and 6.27% for a used car.

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What is the disadvantage of a longer 60 or 72 month auto loan?

The biggest disadvantage for a 72-month car loan would be that the interest rates are much higher for these longer loans. It may be in your best interest to keep your monthly payments low, but that does not mean you are saving money. … The longer the loan, the more you will lose to interest.

Is 0 APR for 72 months a good deal?

A good rule of thumb is to make at least a 20 percent down payment on a car to avoid financial insecurity. Another way that zero percent financing can be a bad deal is if it’s just too long of a loan. Sometimes these deals stretch out for as much as 72 months or six years.

How old of a car can I finance for 60 months?

Get Car Financing. Even with poor credit.

Typically, a bank won’t finance any vehicle older than 10 years, even if you have good credit. If you don’t have great credit, you may find it difficult to finance through a bank, even for a new car. But, banks are far from the last option when it comes to auto lending.

Is a 72 month car loan bad?

A 72-month car loan can make sense in some cases, but it typically only applies if you have good credit. When you have bad credit, a 72-month auto loan can sound appealing due to the lower monthly payment, but, in reality, you’re probably going to pay more than you bargained for.

Is 1.9 Apr good for car?

Dealerships will often advertise very good interest rates on new cars: 2.9%, 1.9%, sometimes even 0%. … Buyers with credit scores in the low 700s can still get a good interest rate but may not qualify for the best promotions.

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Is a 6 year car loan too long?

There’s really only one benefit of a long-term auto loan that spans six to seven years or even longer. The longer the car loan, the smaller the monthly payment. By taking out financing with an extended loan term, you can potentially buy a more expensive car and still stay within your monthly budget.

Is 5 years car loan too long?

5-Year Auto Loan

A 5-year loan is usually more affordable month to month. Drawback: These loans cost more overall. 5-year loans tend to have higher interest rates. You are also paying over a longer period of time, which magnifies the cost of compound interest.

Is 72 month financing a good idea Reddit?

With interest rates around 2%, if you can afford a 4 year loan, there is nothing wrong with a 72 month loan assuming the interest rate doesn’t go up as a result. Just make sure you either pay GAP insurance if it’s cheap, or keep extra cash in the bank should you say hi to a tree or the back of an 18 wheeler.

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