Which is the better length of auto loan 48 mo or 60 mo?

Question

I need to buy a vehicle but I am not sure if I should go with 48 month loan or 60 month. The loan amount would be around $15000. Either way, I like to add extra money each month to go to the principal whenever I can. What do you think?

Answer 1

There is no question about it. The 48 month loan will require slightly higher payments, but the total cost of the loan will save you thousands. If you can afford the shorter term, by all means don't put yourself in hock for 5 years. That interest really piles up. I made a $4,500 down payment on a Toyota Pick up and made payments of $259.00 for 60 months,

The total of the payments was $15,540.00 Adding my down payment = $20040.00. The interest was way too high, but I was stuck with it at 8.54 percent.

Don't appear to really like or want the car. It is better to act a little disinterested and be sure to ask a lot of questions. Don't let the old trick that sellers use, get to you.

While talking to you, they will change the subject and sometimes even attempt to find a common interest with you. That takes your mind off of the sale and leaves you wide open when they stick it to you. There is no other way to say that.

Good Luck.

Answer 2

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RE Which is the better length of auto loan 48 mo or 60 mo?

I need to buy a vehicle but I am not sure if I should go with 48 month loan or 60 month. The loan amount would be around $15000. Either way, I like to add extra money each month to go to the principal whenever I can. What do you think?

Answer 3

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Answer 4

You'll have a lower interest rate with the 48 over the 60, but have to pay more each month. I tend to go 60 months since I like the ability to pay less in an emergency. However I pay more on my loan and pay it off before the 60 months.

Answer 5

if you can afford it, always go with the loan with the least amount of payments. Though the payment will be more, you will spend less in interest over the life of the loan.

Also, since you asked about car loans, a better idea is if you are a home owner, use a home equity line of credit to purchase your car. The reason is this: You can NOT deduct interest on a personal car loan. You CAN deduct the interest on a HELOC. It becomes an interest free loan because as long as you itemize, you will get back the interest in MOST cases. Talk to your accountant.

Answer 6

I agree with the 48 mo. Unless you can get 0 interest.
I was able to do that and was able to get a little higher grade vehicle. I took the 60 mo. loan, but interest free.
It alllowed me to get a little better vehicle than I could have afforded otherwise.

Answer 7

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RE:Which is the better length of auto loan 48 mo or 60 mo?

Answer 8

If you can afford a little higher payment, go with 48 months. I hate to see people sell their car and still owe a bunch of money on it. But, if you're buying new, you may be able to get just as good of a rate at 60 months, and maybe 0%.

Answer 9

Pay more now, or more later. If you can COMFORTABLY swing the payments, go 48 mos. You will pay it off quicker, and if you decide in 3 years you want a new car, chances are you won't owe more than what it's worth. Unless you are looking at anything domestic, or labled "Suzuki, Kia, or Hyundai". At which case, you are on your own.

EVEN at 0% apr on the Fords, you will owe more than what it's worth until about 10-18 mos of paying it off. Which downright sucks!

Answer 10

A 48 month loan in the long run will cost you less if you can pay the higher payment. Early bird gets the worm.