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What are the drawbacks of an 84-month car loan?

Are there drawbacks of an 84-month loan? I want to get the lowest monthly payment possible on my car loan, so an 84-month loan seems like a no-brainer.

avatar
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“Although you’ll pay less per month and can build credit for longer, 84-month loans also have a few downsides, including:
  • More interest paid over the life of the loan
  • Being
    upside down on the loan
    for a majority of the term
  • Vehicle warranty may expire, requiring you to buy a third-party warranty if necessary
This shouldn’t necessarily deter you from getting an 84-month loan, but make sure to weigh these aspects against a lower
down payment
.”
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