Wondering whether an 84 month auto loan is right for you?
Let’s be honest, 84 months is a very long time to be paying off your new car or truck.
Longer car loans divide the amount borrowed into more, and consequently more affordable repayments over a greater time period. However, this long term settlement length translates to higher total interest. At the same time, the borrower will probably be confronted with an “upside down” loan scenario for a longer length of time.
Short-term auto loans let you pay back your vehicle more quickly. You won’t pay as much when it comes to total interest, and you’ll be less at risk of how much you owe vs how much your car or truck is worth. However, there’s a drawback: the monthly payments will set you back a good bit more than they would on a 5-7 year loan.
Down the page, we have listed the distinct advantages and disadvantages of short vs longer term car loans. Keep in mind, a 7 year car loan makes for a very long-term payment period.
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84 Month Car Loans: Rates
Your precise rate of interest will depend on a good many more factors than how long you plan to take to pay down your car or truck.
That said, we’re able to show you various installment payments and interest amounts paid for 7 year car loans with 4.5%, 6%, 8%, 12%, and 20% interest rates. These numbers are based on a $20,000 loan.
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The point is, when it comes to 7 year auto loans, you can expect a low payment per month balanced out by a high total amount of interest. Eighty-four month car loans are best-suited for people who would like to buy a more expensive car or truck without high monthly payments, and who don’t really care how much interest they ultimately pay. Additionally, the 84 month car loan may be well-suited for purchasers of classic cars, or other automobiles that will rise in value over the 7 year course of the loan, thereby offsetting the total interest paid out to the lender. Would this fit well with your needs? If that’s the case, we can help you get your credit accepted for the 84 month auto loan you need…online!