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
“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.”
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Eric Schad
Answered on May 05, 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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