Are you interested in financing a car for 66 months? Term lengths of 5.5 years are generally considered long-term loans, though in reality they are only two months longer than the national average of 64 months. Overall, the trend in recent years has been for consumers to opt for longer-term financing agreements. The trade-off is a simple one. A longer loan will lower your payments on a monthly basis, but you will pay more in the end because of interest.
60 vs 72 Month Terms: is 66 Months the Right Compromise?
The 66 month financing term is much less common 60 month and 72 month terms, but many lenders are beginning to offer it for consumers who want to go long…but not too long. Let’s look a specific scenario to see how these terms stack up against each other.
Monthly Payments for $20,000 Loan at 6% APR
- 60 Month Term: $387
- 66 Month Term: $357
- 72 Month Term: $331
As you can see, the 66 month term saves you $30 over the 60 month term, but is $26 more than the 72 month term. Of course, this might tempt you into thinking that longer is better. That’s not necessarily the case. After all, a longer loan means you’ll be paying more interest, even with the exact same interest rate.
Interest Paid on $20,000 Loan at 6% APR
- 60 Month Term: $3220
- 66 Month Term: $3562
- 72 Month Term: $3832
As you can see in these numbers, there is a pretty huge gap between the interest paid on a 60 vs 72 month loan ($612). The 66 month loan stands as a solid compromise between these traditional 5- and 6-year terms. It saves you some money on your monthly payment, without costing you so much in additional interest.
Is 66 Month Financing Right for You?
You might be the right candidate for 66 month financing if…
- You wanted a lower monthly payment than what’s available with a 60 month term, but you feel that 72 months is too long.
- You can offer a down payment of 15% or more. This will help to prevent yourself from being upside on the loan for too long, and many lenders require down payments on loans of this length.
- You plan to drive this vehicle until it’s fully paid-off. Importantly, you should not opt for a financing term of this length if you intend to trade in your vehicle after two to four years. You will most likely be upside down on the loan at this point, and that negative equity will be rolled into your next loan.
Sound like you? Then apply today for a 66 month auto loan – online!
Why Apply Through MyCarLender.com?
Here at MyCarLender.com, we streamline the auto lending process through a blend of cutting-edge technology and good old-fashioned relationships. We have a network of dealers and lenders that spans the country, and includes banks, credit unions, car dealers, and auto finance companies of every stripe. That means that we can not only find you a lender, we can find you the right lender. When you apply online, our system takes into account various aspects of your consumer profile – location, income, credit, down payment – to match you to the lender who wants your business most. That means lower rates, better terms, and improved customer service.
For consumers with pre-tax incomes of $18,000+ per month, we have a success rate of over 90% at getting their applications pre-approved by a lender. Subprime credit is generally not a problem, and the process often takes less than 24 hours from start to finish, from application to approval. All the while you can rest assured that we maintain very high standards of data protection. There are no obligations, fees, or “catches” for our service. Get started today!