Should I take out a longer-length car loan if it allows me to pay off my other debts faster?

"I know 60-month auto loans are the longest you should take out, but I found a lender for a 96-month loan.

I plan to use the money I'd save on payments to pay off other debt. Then, I'll put money toward the principal of the loan to pay it off early.

Is it a good idea to take out a long-length car loan?"

“It all depends on if you’re going to take the full 96 months to pay off the car loan. If you can pay off your other loans and then refinance the car loan, it might be a good idea.
Remember that life happens. What if you lose your job or you have another unforeseen expense that might put you in default on your loan? This is just to play devil’s advocate.
In general, the 60-month term is ideal because you don’t fall victim to the depreciation of, or go immediately into negative equity on, the vehicle.
Do the calculations, and, if the 96-month loan makes sense, go for it. Just remember to refinance for a shorter term as soon as you possibly can.”
Eric Schad
Answered on May 28, 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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