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Is 72 month car loan bad?

Nicholas Hinrichsen - Published: December 1, 2023

Looking into buying or refinancing a car and wondering: 'is getting a 72 month car loan bad?'
In short - no, but it all depends on your financial goals. The normal loan length for a car in the USA right now is a little over 70 months. Loan terms have been longer and longer each year which worries some financial analysts but remember that:

  • Cars are more reliable and longer lasting now than ever
  • Interest rates are at their lowest amounts in decades, and so total interest expense is lower than ever
  • Used cars have been retaining value better than historically - so you're more likely to end up with positive equity

That said - it all depends on your financial goals. I would not recommend a 72 month term if

  • You are paying a high interest rate (greater than 7%). With a high rate it takes MUCH longer to get to positive equity. With a high rate and a long term, each of your loan payments early on are purely paying down interest
  • If the car is very old. Older cars tend to have more problems and less "life" left, and you may reach a point where its not worth repairing the car while you still have some loan balance left.

Its worth remembering that EVEN if you made a mistake and selected the wrong loan or wrong timespan, it is often possible to refinance.undefined

Haven't explored refinancing yet? Take a look at our exhaustive article about all the auto refinance companies and you will realize, is the only fully digital platform that lets car owners like you do so from the comfort of their own home. No need to set a foot in a bank or credit union. You can lower your rate or get cash in as little as 20 seconds.

Follow three simple steps to refinance your auto loan, get approved in seconds and save thousands in minutes.
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