All About 84-month Auto Loans

An 84-month auto loan is a loan that gives you seven years to pay the lender the amount you borrowed from them. It is a longer loan term than what was once considered the norm. These types of loans are only offered by a few lenders.

Loan terms like these exist because car prices are constantly rising. Lenders today are offering loans with higher amounts and longer terms than ever before. Earlier, 60 months was considered to be the longest loan term, but not so today. The average term for a car loan today is 68 months.


An 84-month loan offers a few benefits. It lets you pay lower monthly amounts to the lender. Since you’re paying over seven years, you have to pay fewer dollars per month. This frees up more money for other debt payments. You could pay off credit card debt, student loans, or any other pressing payments. It also opens up a category of high-priced vehicles that you could not have considered before. But you’re better off using it for savings or investments. This money could come in handy in tough times.


On the other hand, a longer-term loan also has a few negative aspects. Since lenders have to wait longer to get their money back from you, they will charge you a higher interest rate. It means you will pay higher interest through the life of the loan. Extend that thought, and it means that over the life of the loan, you will pay more interest to the lender too. In actual terms, it could be $1000 more as compared to a five-year loan. You could also go upside down on the loan. This essentially means that depreciation will chip away at the value of your car, and a few years later, you may owe more to the lender than what you would get if you were to sell off the car. The warranty of the vehicle may also expire, and you may need to pay for parts and repairs yourself, while you’re still paying off the loan.

To enjoy lower monthly payments without a long-term loan, make a large down payment, lease, or buy a cheaper or used car.


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