Is taking out a 72-month car loan for a family hauler a good idea?

My wife and I are buying a family hauler to chauffeur the kids around. A 60-month car loan is $100 over our monthly budget, while a 72-month car loan is right on point. Should I take out a 72-month loan?

Answer provided by
Eric Schad
Answered on May 05, 2021
“You should try to avoid a 72-month loan for several reasons:
  • Your interest rate will be higher and you will pay far more interest
  • You’re going to have to do maintenance on a car once it reaches that age
  • Your car loan will be upside-down for nearly the entire duration of the loan
Add all these things up and a 72-month loan just isn’t worth it, even with a lower monthly payment. Instead, try to get it down to 60 months, and cut $100 from elsewhere in your budget. Your wallet will be glad you did.”

Did this answer help you?

Ask us a question by email and we will respond within a few days.

Have a different question?

You can meet us at our office and discuss the details of your question.

Easiest way to compare and buy car insurance

No long forms
No spam or unwanted phone calls
Quotes from top insurance companies