Auto loans commonly run from 36 to 84 months. A longer term buys a lower monthly payment, and it costs you more total interest and slower equity.
The right term is the shortest one whose payment fits your budget comfortably, not barely.
Rates also step up with term at most lenders: the same buyer often gets a lower APR at 60 months than at 84, because a longer loan is more risk.
| Term | Monthly payment | Total interest | Best for |
|---|---|---|---|
| 36 months | Highest | Lowest | Strong budgets, older vehicles, fastest payoff |
| 48 months | High | Low | A balance point many lenders price favorably |
| 60 months | Moderate | Moderate | The traditional term for new and late-model cars |
| 72 months | Lower | Higher | Keeping payment down on a newer vehicle you plan to keep |
| 84 months | Lowest | Highest | Maximum affordability; slowest equity, most interest |
Cars depreciate fastest in the first years while a long loan pays principal slowest in those same years. Stretch the term far enough and you can owe more than the car is worth (being upside down) for a large part of the loan.
That matters the day you want to trade in, and the day something happens to the car. It is the main reason GAP coverage exists, and the main argument for a meaningful down payment on a long term.
Type your own numbers and see the same car priced as cash and as a loan, with the taxes and state fees for Arizona. Nothing you type leaves this page.
To see a lease, pick a vehicle. A lease is priced on one car: what it is expected to be worth at the end (its residual) and the leasing company's money factor change by model and by month.
An estimate on the numbers you type, not an offer of credit or a quote from any dealership. Starting loan rates are Rateous's rates for each credit range and term; they are not an offer from any lender. The documentary fee starts at an example figure, the state's legal cap where it has one or $599 where it does not, not any dealership's fee; each dealership sets its own. Taxes and state fees are estimates for Arizona; the dealership's paperwork and your motor vehicle agency have the final numbers. Nothing you type is sent, saved, or used to check your credit.
Not automatically. It can make a needed vehicle affordable, and some buyers take the long term and pay extra principal when they can. Go in knowing the trade: more total interest and a longer stretch where you may owe more than the car is worth.
Most auto loans are simple interest with no prepayment penalty, so paying extra principal shortens the loan and cuts interest. Check your contract to confirm before signing.
More months means more time for things to change, so many lenders price longer terms a step higher. On The Model Black you can flip the term on any quote and watch both the rate and payment move.