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Should I get a 48-month car loan?

I want to balance my monthly payments with a low interest rate. Is a 48-month car loan the way to go?

avatar
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
A 48-month loan is the optimal
car loan
length as recommended by personal finance experts. The reason that it’s so popular is precisely what you’re looking for—48-month car loans offer an ideal balance between monthly payments and interest paid over the life of the loan.
In many cases, a 48-month loan has the same or similar interest rate to a 36-month loan, making it even more attractive to potential buyers. Additionally, a 48-month car loan minimizes depreciation, avoiding long periods when you’re
upside-down
on the car loan.
Ultimately, the decision between low monthly payments versus interest comes down to your personal preference—but a 48-month car loan is highly recommended, so it may be the right choice for you. 
Keep in mind that virtually any car loan (including a 48-month loan) will also require you to purchase
full coverage auto insurance
on the vehicle for the duration of the loan term—so budget accordingly. 
View full answer 
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