Should I pay a loan off in 36 months or 60 months if they have the same interest rate?
If two car loans have the same interest rate, which loan is the better option? I went to a dealer to finance a new car, and they're running a 0.9% APR financing special for either 36 or 60 months.
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Answered on Jul 03, 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.
“If you want to keep a low monthly payment and you can invest money in stocks or other investments that make more than 0.9% each year, then getting the loan for 60 months makes sense.
However, if you’re not an investor and you want to minimize the amount of interest you pay, the 36-month loan might be the better option.
Like with any type of financial decision, you’ll have to weigh the pros and cons. As you review your budget, don’t forget to calculate the cost of car insurance.”
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