What are the Different Car Loan Terms

What are the Different Car Loan Terms

Can car buying be a positive experience? Yes, it can. But on the other side people also think buying a car can sometimes be a daunting process. I am saying it’s a daunting process because you might not have invested big before. Therefore before buying, there are few things you must consider, from paperwork to loans. In this article, we will be looking into different auto loan terms. 

You can explore the options available and use a car loan calculator to help yourself go through all the big numbers. As per the car loan length, you must first find out the interest rate options available. Now you can input the size of the car loan along with the co-ordinating interest rate into the car loan calculator and note down the loan payment amounts.

Different loan terms you will get to know at the end of the article ranging 

from 24-to-72 month loans.


24-month duration loan, which is not much feasible for many customers as it is a short term loan whose monthly payment increases every month. The interest rate varies. It is supposed to be less, for example, as low as 4.5% on a $36,000 car, which is when you have perfect credit. If you have paid $4000 down where you have monthly payments of about $1,400 here, the total interest paid would be approximately $2,200. You can click here for $0 down auto loans today and drive the car the same day.


A 36-month auto loan is a term in the middle of the pack. It always attracts buyers who all can afford mid-range monthly payments, and interest rates are also mid-range. This term will allow you to pay faster than longer loans, letting one be out of the car. You can study the Pros and Cons of a 36-month loan in the previous article.


For the 48-month, the lenders sometimes charge the same interest rate as the 36-month auto loan. With this term, you can consider taking a lower monthly payment with a longer loan and pay more than the minimum amount. The big difference you will see with the 48month is in case of running into a financial jam, and could easily start paying the minimum. Hence free up money for the emergency. 

Look into an example as you might have to pay $729 per month with the 48-month loan versus $950 with a 36-month loan, but with the former, you will pay $800 more in interest. 

60-month and more

If you have 60-month loan or higher also with little higher interest rate, it is possible you can make the payment early and pay more than the minimum. At the close of the loan, the final interest you may pay might not be much plus you also have the freedom to lower the payment to a minimum whenever it fits you. 

With the 60-months, the interest rate usually goes with $5.5% and $4,000 down payment, which is close enough to $611, but the interest paid to shout up to around $4,674. When you see an average of 69months along with the interest rate of 6.12%, the total amount you pay for the vehicle is $37,949 considering well the vehicle brand is worth the payment.

1 Comment
  • Ralph Ornelas
    Posted at 13:54h, 01 April Reply

    You said a veteran can get $18,000 to buy a car i would like that im 63 year old veteran i already had a hip replacement and i need the other hip replaced i dont have a car but i need one i just got out of the hospital with covid 19 and i have diabetes and heart failure i have to take the bus every where please help me i dont get much money every month so i cant afford a car payment

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