Between your total price, down payment, and interest rate, many factors affect your monthly loan payment. The length of your loan is also an important factor. Our Mazda finance experts at Fields Mazda of Asheville share how to choose your loan term.
Standard Car Loan Length
There isn’t a set rule for a car loan length, which is also known as its term. However, a five-year loan is considered standard. This is known as a 60-month term, since car loans are typically expressed in months. A 60-month loan splits the cost of your car into comfortable monthly payments, although it’s short enough to help you avoid negative equity (or owing more on your loan than your car is worth).
Choosing a Longer Term
While a 60-month loan is considered standard, a 72-month loan has become the most common. A car loan can even stretch to 84 months, or in rare cases, 96 months. A longer car loan will make your payments smaller, which can help buyers fit a new car into their monthly budget. However, you’ll pay more interest on a longer loan, which means you’ll pay more overall.
Choosing a Shorter Term
If you prefer, you can opt for a shorter loan term, as short as 24 months. By shortening your term, you’ll pay less interest. In fact, many lenders will offer a lower interest rate for buyers looking for a short-term loan, because a short-term loan isn’t as risky. Plus, you’re less likely to become upside down in your loan.
Apply for MAZDA Financing in Asheville, NC
We’d be happy to sit down with you and discuss your loan options. We can help you determine the best financial decision for you. Visit Fields Mazda of Asheville to apply for Mazda financing today!
