subject: Enjoy the Benefits of a 72 Month Auto Loan [print this page] Enjoy the Benefits of a 72 Month Auto Loan
Let's face it, a car, while a major purchase, will not last you a lifetime. Even those people who purchase a brand new car will only keep it on average for 7 to 10 years. Given this fact, it only makes sense that you aim to repay your car loan as soon as possible. While most lenders offer a 5 year term on a car loan, a 72 month auto loan may be a better option for you.
A 72 month auto loan will not only allow you to pay your car off in a reasonable amount of time, but it will also save you a lot of money in interest when compared to a loan term of 7 years or more. Since interest is represented as an annual percentage rate you will be able to reduce the total amount of interest you pay on your car loan by taking out a 72 month auto loan in comparison.
Most people will opt for the longest repayment term that they can because it means that their scheduled repayments are less however, they will be committed to this loan for a lot longer time than if they were to take out a 72 month auto loan. Any car loan can be a big financial commitment and so you should aim to pay it out as soon as you can. While you may end up paying a bit more each fortnight for a shorter term, the 72 month auto loan allows for a bit of flexibility in your repayments whilst not being as long as some of the longer terms on offer.
Most lenders will allow you to choose a 72 month auto loan term when you finance you vehicle purchase through them. While they may push a 5 year term and point out the benefits of these loans, you ultimately have the choice about the length of time you want to take your loan over.
If you wish to opt for a longer term than a 72 month auto loan because the repayment amount suits your immediate financial circumstances more, you will need to keep in mind the benefits of continually re-assessing your finances and adjusting your repayments in order to try and pay your loan out sooner. The majority of lenders will allow you to pay extra off your loan without incurring any penalties. You may even find that you can pay out a 72 month auto loan in the same amount of time as you would if you had taken out a 5 year loan, just by paying a little more each fortnight.
A 72 month auto loan is certainly something you should be considering when looking into car finance options, particularly if you will be needing to use your car as an asset in the future. When it comes to getting a mortgage, most financial institutions will not approve you if you have a car loan debt and so getting rid of this debt in the shortest amount of time possible will be to your advantage in this situation.
When it comes to financing the purchase of your car you should definitely consider the advantages of a 72 month auto loan. Getting rid of this debt in the shortest time that you can, will allow you to own your car outright and free you up financially a lot sooner.
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