Can I get a 7-year car loan for a Prius?

I want to get a Prius because of its exceptional mileage, but I don't have the cash. I also want to make my payments as low as possible. Can I get a 7-year loan?

Yes, it is very likely that you can get a 7-year car loan for a Prius. However, it may not be the best option. Although longer loans have lower monthly payments, you end up paying more interest over the life of the loan.
If you can afford a higher monthly payment, choose a loan term under 60 months. You will end up paying less for your Prius in the long run.
Here are some potential drawbacks of getting a longer-term loan:
  • Ending up upside down: If you take out an extra-long loan, you’re more likely to end up owing more than your car is worth (aka, being in an upside-down loan). The value of new cars depreciates quickly, so it’s not uncommon for borrowers to spend some time underwater on their loan.
  • Getting stuck with negative equity: If you end up having to trade the car before the loan is paid off, you might have to deal with negative equity. You might also end up owing your lender money if your car is totaled.
  • Being subjected to interest rate increases: The longer you’re paying interest on a vehicle, the more likely you are to experience an interest rate increase.
Regardless of which loan term you choose, make sure you get your new ride the best car insurance for the most affordable price. Use the Jerry app to compare quotes from dozens of insurers. The best part? The average driver saves $879 on insurance a year!
Eric Schad
Answered on Oct 25, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.

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