Terms of car loans

Car loans come in different terms and you will want to consider them all.

For a new car you will probably be offered anywhere from a five to a seven year loan. The longer the term of your car loan, the smaller your monthly payment will be.

Do the math

If you go with a three or four year loan that costs an additional $100 per month, but your car will be paid off three years quicker, you will have actually saved quite a bit of money over the term of the loan.

Get the shortest term of car loan you can possibly afford. You will be happy you did in the long run.

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