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How to Pay Off Your Car Loan Faster: Here’s What to Consider

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There are several ways to pay off your car loan faster, several of them without shelling out an extra dime. Auto debt not only accounts for about 9% of all consumer debt in the U.S., it’s growing: monthly payments are larger and terms are longer than they were a year ago. Paying off your car as fast as possible frees up that money for other things.

How to pay off your car loan faster without paying more

The faster you pay off your car loan, the less you’ll pay in interest. But it may not always be possible to throw more money at your monthly payment. Here are some ways you may be able to pay off your car faster without paying additional money on the loan.


This is the process of applying for a new auto loan to pay off your existing loan, hopefully with a better interest rate or term.

Pros. A refinance loan could help you pay your car off sooner and with a lower interest rate. Maybe your credit score has improved since your original auto loan — the best rates tend to go to those with the best credit. Average rates dropped at the end of 2020 with an average APR of 4.6% for a new car loan versus 5.5% at the same time in 2019.

Cons. Downsides should be few except for the time spent shopping for the best rate and any fees you might have to pay such as those to your state’s department of motor vehicles to transfer your car’s title to the new lender. These costs should be low, under $100.

Who it may be good for. An auto refinance loan may be a good option for you if:

  • You have a high interest rate and either your credit has improved since you signed for the auto loan or you’re not underwater on the auto loan, meaning you do not owe more on your car than it is worth.
  • You do not face high penalties for paying off your current loan early.
  • You got the auto loan through a dealership, especially a “buy here, pay here” establishment. The average hidden interest rate added by dealers is 2.47% and “buy here, pay here” businesses are known for predatory lending practices.

How to do it. Call your lender to find out how much you owe and your APR. Refinance lenders usually ask for this information, so it’s good to have it on hand. Then you can look for the best auto refinance companies and find potential auto refinance offers.


As low as


24 To 84





on LendingTree’s secure website

LendingTree is our parent company


LendingTree is our parent company. LendingTree is unique in that they allow you to compare multiple, auto loan offers within minutes. Everything is done online. LendingTree is not a lender, but their service connects you with up to five offers from auto loan lenders based on your creditworthiness.

Advertised rate is for new and used auto loans for an offered loan amount of $10,000 with a 36 month term.

Cancel any add-ons

Common auto loan add-ons include guaranteed asset protection (GAP) waivers, service contracts or extended warranties, tire and wheel warranties and more — you may have agreed to these when you bought your car without understanding the full cost. Canceling them will decrease how much you owe on your auto loan, allowing you to pay off your car loan faster.

Who it may be good for. Anyone who has add-ons may be able to cancel them. The less you owe, the less you pay.

How to do it. Check your car contract, call your lender or call the dealership to see if any add-ons are listed on your paperwork. If there are any, find out what they are and consider canceling them to get a prorated return. You may need to fill out some paperwork to officially cancel the add-ons, but a few hundred dollars may be worth it.

Special note. If your car has a history of needing repairs, take that into consideration before deciding to cancel an extended warranty. If you are underwater on your car loan, think carefully before you cancel GAP, which is made to protect upside-down borrowers.

Make payments every two weeks

Instead of paying once a month, take your existing car payment and split it in half. Paying every two weeks means your loan balance is continually decreasing, which has the effect of paying less interest over the course of the loan.

Why it can be good. This is a way to essentially make an extra payment without forking over extra money.

Who it can be good for. By doing this, you’re not paying any more than you normally would, but it has the effect of making an extra payment a year, so it may be especially good for someone on a tight budget.

How to do it. Check with the lender to be sure you won’t run into any prepayment penalties. If not, make a half payment every two weeks instead of one full payment each month. You could automate your checking account to send the payment, or give permission to the lender to automatically pull the payment.

How to pay off your car faster with the most bang for your buck

Have extra cash to put toward your auto loan? While the methods above are good, the fastest way to pay off your car is to increase the amount you’re spending. Almost all of these tips involve making extra payments to the principal, the amount you owe on the car not including interest. But first check with your lender that you will not be penalized or charged a fee for prepaying your loan.

Make extra payments to the principal

Why it can be good. Auto loans have simple interest, which means that for every dollar you put toward the principal, you pay exponentially less interest to the lender.

Who it can be good for. Anyone who has an auto loan from a lender who doesn’t penalize early payoff or payments to principal.

How to do it. Call the lender and ask how you can make extra payments to the principal only. You should do this because extra payments not to the principal means you’re paying interest — all you’re doing is giving the bank money early. If you make payments to the principal, you’re not paying as much in interest, which is very good.

Round up your car payment

If you find it difficult to save money or you don’t have quite enough cash to make a whole extra payment, check out this round-up method.

Why it can be good. You could pay off your auto loan early without changing how often you make your payments.

Who it can be good for. If you have a hard time saving money, this is a good way to do so.

How to do it. If the lender will not charge a prepayment penalty, you have nothing to lose by doing this and you can do it in two ways:

  • Simply round up your monthly payment. For example, if your monthly payment is $350, round up and pay an even $400.
  • Use a money savings app, such as Acorns, to round up what you pay on all of your purchases to the nearest dollar and then pay that money to the auto loan. For example, if you got gas for $15.30, the app would round the charge up to $16 and $0.70 could go into your savings account. A little goes a long way and by the end of the month, you may have $50 you could put toward your auto loan.

Attack other debts: avalanche vs. snowball

We’re not talking about the weather; these are two popular methods used to pay off debts faster. The avalanche method prioritizes paying off high-interest debt first. The snowball method involves paying off your debts starting with the lowest amounts. You can read about more debt payoff methods here.

Why it can be good. These are methods that could help you pay off all your debts, not just your car loan.

Who it can be good for. If you have multiple loans or debts, these methods may help you organize them and pay them off.

Snowball method: how to do it. This is a three-step pattern that should allow you to “snowball” your money to pay off your car loan faster.

  1. Look at your loans and rank them from lowest to highest.
  2. Then focus on that smallest loan, paying it off as quickly as you can with any extra cash available while making minimum payments on your other debt.
  3. Once it’s paid off, congratulations! You no longer have that payment to make. Choose another loan and repeat the process, using the money you would have paid on the loan you paid off.

Avalanche method: how to do it. This method prioritizes debt with the highest APR. For example, if you’re paying a higher interest rate on credit card debt than your car loan, you may be better off using any extra cash to pay that down first.

  1. Look at your loans and rank them from highest APR to lowest.
  2. Determine how much extra cash you can put toward the debt with the highest interest while making minimum payments on your other debt.
  3. Once it’s paid off, roll the money you were using to pay down that debt into the next one.

Utilize any windfalls

Regular extra payments may not always be realistic for your budget, but if you get any money outside of your budget that you didn’t count on, using that money as one-time extra payment toward the principal could really help.

Why it can be good. Any “windfalls” you have, such as a tax return, a refund, a bonus, a big tip or a pay raise, can be put toward the principal on your auto loan.

Who it can be good for. If you were not counting on the windfall, the extra money you got is just that — extra money. By using it as a payment to principal on your auto loan, you’ll save more money because the less you owe, the less interest you’ll pay.

How to do it. It might take some self-control, but use the windfall cash to pay the auto loan. The sooner you’ll pay it off, the more money you’ll have later to spend on things you’ll enjoy.

Make extra income

If your regular paycheck isn’t able to stretch any further, consider a side hustle and put the earnings toward your auto loan.

Why it can be good. A part-time job a few hours a week could add up to enough cash to make a significant dent in what you owe.

Who it can be good for. Anyone with some extra free time may be able to find a part-time job, temp work, freelance assignment or other gig.

How to do it. Depending on what you’re willing and able to do, you could sign up at a temporary work agency, look on job sites and/or talk to people you know about any job opportunities. Just remember to spend the money you make on paying off the principal of the auto loan. You can check out this guide to monetizing a hobby.

Remove extra expenses

What are you willing to cut out of your budget or give up to pay off your car loan faster? Again, every bit helps, if the extra cash goes toward the principal of your auto loan.

Why it can be good. If you aren’t willing or able to make more income, spending less can be an equally good option and, as a bonus, you can keep doing it even after your car is paid off and save the money.

Who it can be good for. Practically anyone could do this.

How to do it. Take a look at your credit card statement or write down what you buy so you can see your spending habits in black and white. Then, decide what you could cut out or possibly get a better deal on — it might add up to more than you think. Maybe you could eat out once a week instead of every day. Maybe you could find cheaper auto insurance. Then apply that savings to your auto loan principal.

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Review: Navy Federal Credit Union Auto Loan

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been previewed, commissioned or otherwise endorsed by any of our network partners.

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Are you shopping around for your best auto loan rates before you buy a car? If not, you should be.

It helps to get an idea of the type of loan you could be approved for before you make a trip to the dealership. Plus, credit unions like Navy Federal Credit Union may offer some of the best rates compared to traditional banks. Navy Federal auto loan rates range from 1.79% to 17.99% for those eligible for membership, including active-duty military members, veterans, retirees and their families.

Navy Federal auto loan details

APRs (annual percentage rates) start at 1.79% for terms up to 96 months. Like other lenders, however, some of the lowest Navy Federal auto loan rates go to new-car buyers who choose the shortest terms. The credit union has competitive APRs for used cars, too, particularly late-model vehicles. The maximum loan term for used vehicles is 72 months. Used or new, loan amounts start at $250 — there is no maximum.

Starting APRs for New, Used and Refinance Car Loans
Vehicle AgeUp to 36 months37 - 60 months61 - 72 months73 - 84 months85- 96 months
New, up to 7,499 miles1.79%2.19%2.29%4.69%5.59%
Used, within 3 model years, 7,500-30,000 miles2.29%2.39%3.89%N/AN/A
Used, over 30,000 miles3.89%3.89%4.29%N/AN/A

Long auto loans

We don’t recommend an auto loan longer than 72 months. The longer your term is, the more you’re going to pay over the life of the loan. Navy Federal offers a 96-month auto loan, but no one wants to be paying back a car loan for eight years. Stick to your budget and remember not to focus solely on the monthly payment — take the overall cost of the loan into consideration.

The fine print

There are no additional fees associated with a Navy Federal auto loan. Rates are based on your credit (having a FICO Score over 700 helps) and, as mentioned earlier, the year model of the car you’re looking to finance. You may use Navy Federal auto loans to buy from dealerships and private parties.

How to apply for a Navy Federal auto loan

To apply for a Navy Federal car loan, which is possible to do online, you’ll first need to be a member of the credit union. We’ll talk more in a minute about membership requirements, but here’s what you’ll need to start the auto loan application process.

Information needed to apply for an auto loan

For each person that is to be on the loan (including a cosigner, if there is one), you’ll need to provide their name, address, employer and income. From there, the level of information you need depends on where you are in the car-buying process.

If you’re still shopping for a car and looking for a preapproval, you’ll need:

  • Amount you want to borrow. Leave room for taxes and fees, which usually add up to 8% to 10% of the car’s value, and subtract the down payment you plan to make. If possible, we recommend paying cash for taxes and fees instead of rolling those costs into your loan.
  • Trade-in details. If you have a trade-in vehicle, you’ll need to provide its VIN (vehicle identification number) or year, make, model and trim.
  • Loan term. Preferred number of months for repaying the loan.

If you already know the exact car you want to buy, you’ll need to provide additional information:

  • Details of the car you want. Its exact mileage, VIN, year, make, model and trim.
  • The seller’s information. The name and address of the dealership or private seller.

Navy Federal membership requirements

Those with military connections are eligible to join Navy Federal Credit Union. This includes family members of and those who are:

  • Active duty in the Army, Navy, Marines, Air Force, Coast Guard, National Guard or Space Force
  • A member of the Delayed Entry Program
  • A Department of Defense (DoD) officer candidate or ROTC member
  • DoD Reservists
  • Retirees from any service branch

You may also qualify if you’re:

  • A DoD civilian employee or retiree
  • A federal government employee assigned to a DoD installation
  • A DoD contractor assigned to a federal government installation

Navy Federal defines family members as parents, grandparents, spouses, siblings, grandchildren, children (adopted children and stepchildren included) and members of your household.

Pros and cons of a Navy Federal auto loan

Navy Federal auto loan rates are among the lowest we’ve seen, even among fellow credit unions, which tend to have lower APRs than many banks. But membership criteria is stricter than other credit unions, so a Navy Federal car loan won’t work for everyone.

Pros of a Navy Federal auto loan

  • Competitive APRs
  • APR discount: Active-duty and retired military members with direct deposit could get a 0.25 percentage point discount off even the lowest rates.
  • Auto-buying program: Shop for and finance a car, all in one place, through Navy Federal’s auto-buying program. You may be eligible for member-only pricing on new cars. If you’re car shopping while serving overseas, Navy Federal offers a car-buying program for you, too. Delivery is possible stateside or to your overseas duty station.

Cons of a Navy Federal auto loan

  • Strict membership requirements: If you don’t have a connection to the U.S. armed forces, you might not be eligible to join.
  • Not instant: In a world of near-instant gratification on the internet, it seems odd that you have to go to a branch in person or wait to get your auto loan check in the mail. Other lenders will overnight a check to you or arrange for electronic delivery.

Comparable auto loans

If you don’t meet Navy Federal’s membership criteria, there are still great options out there for an auto loan. We encourage you to reach out to your local credit union or take a look at these other top auto lenders listed on our site:

Consumers Credit Union

  • APRs as low as 2.69%
  • Terms up to 84 months
  • Loan amounts up to $250 - $100,000

Capital One

  • APRs as low as 3.39%
  • Terms from 36 to 84 months
  • Loan amounts from $4,000

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Why You Shouldn’t Take Out an 84-Month Auto Loan

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been previewed, commissioned or otherwise endorsed by any of our network partners.

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If high monthly payments keep you from buying the car you want, you may be tempted to lower your payments by signing up for a 72-, 84- or even 96-month term loan.

While financing with an 84-month auto loan can lead to a lower monthly payment, you should be aware of the risks. Depending on your financial situation, it could be a way to get the vehicle you want, but you could pay more than you planned.

Many auto lenders, including banks, credit unions and online lenders, offer 84-month financing. Be sure you know what’s at stake before you sign up for a loan term that long.

6 reasons an 84-month auto loan is a bad idea

Many financial experts say an 84-month auto loan is a bad idea. You will pay more for the car than you would with a shorter loan even though the monthly payments will be less than the shorter loan term. According to Edmunds, nearly 70% of new car loans in the first half of 2020 were longer than 60 months, with the average loan term hitting 70.6 months.

That’s due in large part to the rising cost of vehicles. According to Kelley Blue Book, the average transaction price of a new car has risen to $38,378, and popular vehicles, such as crossover SUVs and pickup trucks can be even more.

1. Higher interest charges

Typically, interest rates for an 84-month loan are higher than average car loan interest rates for 60- or 72-month loans. After all, 84 months is 7 years, which is a long time to drive a car.

2. Pay more in interest over the life of the loan

The loan term is longer, so you will pay more in interest for an 84-month loan compared with a shorter term. Overall, the car will cost more to own by the time the loan is paid off.

3. Higher credit score required

Longer-term loans usually require a good credit score, according to Melinda Zabritski, senior director of automotive financial solutions with Experian. Lenders take on more risk with a longer loan, so they want to lend to people who have a track record of paying their bills.

4. Payments may outlast your warranty

Most new-car warranties run 36 months, with some running up to 60 months, or even longer for some components such as the drivetrain. If you keep a car for the full 84 months, you’ll own it after the warranty runs out, which means you’re on the hook for all repair costs.

5. Repair costs

As you drive your vehicle and the miles add up, it’s more likely it will need repairs and maintenance, such as fluid changes, timing belts and other things that require the skills of a mechanic. The higher the mileage ticks, the more likely it is that important components (like transmission and engine) will start to require replacement and significant repair.

“The longer the loan term, the more interest you will pay over the life of the loan and the less money you may be able to set aside in the long run for maintenance and repairs as the vehicle ages,” said Joe Pendergast, vice president of consumer lending at Navy Federal Credit Union.

6. Negative equity

Otherwise known as being upside down, negative equity happens when you owe more than your car is worth. Unless you pony up a substantial down payment, you’ll likely be upside down with an 84-month loan term. That’s because the car’s value will depreciate faster than your paying down the principal of the loan. With a long-term loan, you pay less principal each month, so it takes longer to pay off the balance.

Many people like to get into a new car sooner than 84 months. So they’re stuck with a car or truck that’s not worth as much as they owe on it when it comes time to trade it in.

3 instances when an 84-month auto loan might make sense

Depending on your situation, an 84-month loan term might make sense. Perhaps you really need a new vehicle to accommodate a changing family situation. Or maybe you’ve relocated to a snowy climate where you need a four-wheel-drive SUV. In some cases, an 84-month loan may be your best option.

1. Affordability

A long loan term may be the only way you can purchase a new vehicle that fits your needs. If you’re trying to make room for a growing family or need to buy a truck for work, there may not be many other options. With a long-term loan, you can make the monthly payments fit your budget. Keep in mind you’ll actually be paying more for the vehicle over time.

2. Other debt needs to be paid down first

Depending on your financial situation, you may have debt with higher interest rates or a more substantial loan balance. You could put the money you’re saving on the car payment toward other loans. “A longer term on your car loan may provide more financial flexibility in your budget by giving you a lower monthly payment,” Pendergast said.

3. Incentive financing

During the COVID-19 shutdowns, some car manufacturers offered 84-month loans at 0% financing. While these terms may seem like a good deal, be aware that it may not be the best deal. If a manufacturer also offers a cashback incentive on the car, it may make more sense to take the incentive, apply it to the down payment and take a loan with a higher interest rate, Zabritski said. That way, you’re financing less principal, which can keep the payment down but may also cost less in interest.

A Tale of 3 Auto Loans
Purchase PriceLoan TermAPRTotal Interest Paid*
$25,00060 months8.21%$5,566
$25,00072 months8.21%$6,745
$25,00084 months8.21%$7,951
Total savings by using a 60-month loan term$2,385

*Does not include down payment, tax, title and registration fees. Based on a credit score of 680+.

Adding tax, title and registration to the loan amount will increase the amount of interest you pay. If you make a down payment or have a trade-in, the amount you borrow will go down.

How to make the most of a long-term auto loan

If you must get an 84-month auto loan, there are some steps you can take to make the most of it.

Compare rates

Usually, interest rates are slightly higher for 84-month terms compared with 60- and 72-month terms. Compare rates and use an auto loan calculator to crunch the numbers. A shorter-term rate with a lower interest rate will mean a higher monthly payment but lower overall cost. Shop around for interest rates and get multiple offers from lenders to compare.

Buy now, make extra payments

You could make additional payments to pay the loan off early or build up equity. If you’re buying a vehicle at the average price of $38,378, an 84-month loan would be $602.19 per month, and you’d pay $12,206 in interest. If you pay an extra $100 per month, you could save $2,298 in interest and own the car in just over five years instead of seven years.

Buy now, refinance later

You drive off the lot with the car you want now with an 84-month loan. If your financial situation improves, you could refinance for a shorter term to save on interest.

Make a large down payment

You could pay 20% or more of the purchase price upfront. That reduces the amount you borrow. However, you should also avoid financing fees such as taxes, registration and dealer fees, and add-ons such as the dealer’s paint protection coating or vehicle service plan.

When you put more down on your vehicle, you’re less likely to become upside down, and you may be able to avoid guaranteed auto protection or GAP insurance. GAP insurance covers the difference between the loan balance and the car’s value in the event the car is a total loss.

Buy used

You can reduce the amount you borrow by buying a used car that costs less than a new one. According to Experian, the average payment for a used vehicle is $391 compared with $554 for a new one. You can save some money and have a more affordable payment if you choose to buy a used vehicle. There are however, some trade-offs to buying used, too. There are some 0% and other low-rate financing deals available for used cars at shorter terms, such as 36 months that could reduce your payment if you qualify.

Understanding the auto loan process

Most people go shopping for a car and find one they like before they think about financing. That’s backward. You’re more likely to fall for dealership sales tactics and buy a more expensive car than you can afford when you shop this way.

Instead, get preapproved for a loan with a bank, credit union or online lender. The dealer may have lenders that can help you get preapproved before you select your car.

With a preapproval, you’ll know how much you can borrow to pay for the car and what the monthly payment would be. You’ll have a loan amount and interest rate that you can use to compare with the financing options from the dealer and other lenders. You’ll be prepared to make an informed decision when you find the car you want.

Lenders look for a high credit score for an 84-month loan term, so check to see what your credit might be before applying. That way you’ll know which lenders might give you preapproval.

How to get preapproved for an auto loan

With just a little preparation, you can get preapproved by a bank, credit union or online lender. You can research rates online to get an idea of what’s being offered in the market. Lenders will use your creditworthiness to determine the interest rate they will offer you. Keep in mind that the credit score for an auto loan is a little different from other loans.

1. Gather your documents

Get your information together before you visit a lender or apply online. You’ll need documentation like:

  • Personal information, including name, address, phone number and Social Security number.
  • Employment Information, such as your employer’s name and address, your job title and salary, and length of employment.
  • Financial information, including your current debts, your living situation, what kind of credit you have available and your credit score.
  • Loan information, including the amount you expect to finance and the length of the loan term you want, as well as any trade-in or down payment information.

2. Apply

Armed with your documents, apply for your auto loan online and in-person with a few different lenders. Shop around for the best auto loan rates. If you’re shopping for a car, multiple credit inquiries made within 14 to 45 days won’t hurt your credit score any more than a single inquiry would.

3. Shop with your preapproval

If you’re successful in getting preapproved, you’ll receive a loan quote that shows much you qualify for, the interest rate and the length of the loan. You can use this information when you go shopping at the dealer. You’ll know how much you can afford to spend on the car. And you’ll be able to compare financing offers.

4. Consider a cosigner

If you have less than good credit, a cosigner could help you qualify for a loan that you may not be able to get on your own. Using a cosigner with a good credit score could help you qualify for a lower interest rate as well.

Keep in mind the cosigner is responsible for paying the loan if you don’t pay it. That could negatively affect their credit score as well as yours. If the cosigner is a friend or family member, make sure they’re aware of their commitment to the loan.

Auto loan contract traps

Be aware of a few financing traps dealers may use while you’re shopping for a car. If you can recognize what the dealer is doing, you can avoid paying more than you planned.

Paying too much for the car

Research the manufacturer’s suggested retail price (MSRP) of the vehicle you’re looking at, and any incentives that may be available. The sticker price can vary by trim levels and options, so research the options you want. Many cars sell below sticker or MSRP except for a few high-demand models. Be wary of dealer add-ons that are often presented at the final stage of negotiation, such as:

  • Nitrogen in the tires
  • Upholstery and paint protection packages
  • Vehicle service contracts
  • Window tinting
  • Window vehicle identification number (VIN) etching packages

Taking too little for your trade-in

Research your car’s value on sites like Kelley Blue Book and Edmunds to see the market price for a trade-in in your area. If you still owe money on the car, and especially if you owe more than the car is worth, you could have less negotiating power.

Focusing on monthly payment

Don’t lose sight of how much the car will cost you through the life of the loan. That’s where the 84-month loan term may look attractive but could cost you several thousand dollars on a new car. Look at the total cost of the purchase price plus the total amount of interest before you settle on a loan term.

Ignoring your budget

This where the loan preapproval will help keep you on track. Have a good sense of how much you can borrow and how much you can afford to pay each month considering your other obligations.

When it makes sense to lease vs. buy a car

Leasing can be a good alternative to a longer loan term. You could drive the same car for a lower monthly payment, although leases are typically 36 to 37 months. Before you lease, understand the pros and cons compared with buying a car. An increasing number of people are turning to leasing for their new vehicles, according to Experian.

One of the reasons is the average new lease payment is $466, while the average monthly payment for a new loan is $569, Zabritski said.

Pros and Cons of Leasing vs. Buying a Car
Monthly payment Payments on a lease are $100 less on average compared to buying, according to Experian.Payments are more for a loan, but once it's paid off, you own the car.
Warranty coverageDuring the average lease of 36 months, your car will be under full warranty coverage.You can purchase extended warranties or vehicle service contracts. Otherwise, you're responsible for maintenance costs.
Financing term You can move to a new vehicle at the end of the 36-month lease instead of being locked into a long-term car loan.At the end of the loan, you can sell, trade in or keep the car.
MileageLeases typically allow 10,000-15,000 miles per year, and you'll pay more for additional miles, either upfront or at the end of the lease.Unlimited miles when you own the car.
Wear-and-tear feesYou'll pay extra for upholstery stains, paint scratches, dents, and wear and tear above the normal when you turn the car in.Wear and tear could lower the resale or trade-in value.
ValueThe value of the car is set at the end of the lease and barring high mileage or excessive wear-and-tear, it shouldn’t change.The car’s value may not be as much as you owe on it and can continue to depreciate as the car ages.

FAQs about 84-month auto loans

Depending on your credit score and other factors, interest rates on car loans vary from low manufacturer incentives of 0% up to the maximum allowed interest rate in your state. The average rate for new-car buyers is 5.61% while used car buyers pay an average 9.65%, according to Experian.

You can usually finance a new car for 24 months up to 96 months or eight years. The average loan term is 70.6 months.

Used cars can usually be financed up to 72 months, although it can depend on the age and mileage of the car.