What is the shortest term available for a car loan?
I don't want to be stuck with a car loan for too long. What's the shortest term I can get?
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Answered on Mar 25, 2021
Jim Donaher is a freelance writer and manager with over 35 years' experience in the insurance, banking, and investment management businesses. He provides expertise on a range of topics and is able to explain complex industry information in layman's terms. Jim is the author of two books, including Call Him, He's Home: A Guide to Prayer for Regular People and Then Larry Smiled, a novel about life, death, accountability, and salvation. Taormina, Sicily is his happy place!
“The shortest term that is generally available for an auto loan is 24 months.
The good news is that you are not required to keep the loan for its full term. You can pay it off earlier by making extra payments, though you should first confirm that your lender does not impose a prepayment penalty.
Your best bet, as always, is to take out the smallest loan possible for the shortest term possible at the best interest rate available. This basically means getting a loan with an affordable monthly payment. Shorter-term loans have higher monthly payments, but over the life of the loan you will save more in interest. “
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