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.
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Answered on Jul 15, 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.
“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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