"Should I go with a longer car loan term if the interest rate stays the same? "
"I got pre-approved for a $25,000 car loan at a 3.52% interest rate through my credit union. The interest rate will stay the same whether I go for a four-year loan or a five-year loan.
Is there any downside to going with the longer-term loan for the lower monthly payments?
Answer provided by
- The roughly $500 difference in interest charges you will incur
- The greater risk of being upside-down in the last year of the loan (meaning you owe more than the car is worth)