Is 7 Year Financing Right for You?

Is an 84 Month Auto Loan Right for You?

In order to boost vehicle sales, automaker financing branches such as Ford Motor Credit, Toyota Motor Credit, GMAC, as well as many local lenders and dealers, have been offering 84 month auto loans. has partnered with one of the most comprehensive national networks of automotive lenders and dealer financiers in the industry to find you the loan you need.  If you’re ready to apply for one of these 84 month auto loans, just submit your credit application via our secure online system.  Our advanced matching system will place your application with the most suitable lender given your unique credit profile, income, location, and vehicle financing needs.

84 Month Financing:  Advantages

Lower Monthly Payments: because you have a period of 7 years to pay off your vehicle, the payment each month will be lower than a 72 or 60 month auto loan.

More Car for The Same Payment: if you can afford a flat car payment of $400/month, for instance, this would equate to a $24,000 vehicle with a 60 month loan, but a $33,600 vehicle with 84 month financing.

84 Month Financing:  Disadvantages

Depreciation: most new vehicles depreciate to about half their value in the first three years, and most car buyers trade-in within 3-4 years.  That far into a 60 month loan, the vehicle is often worth the same amount as the remaining loan balance.  But 3-4 years into an 84 month auto loan, you will still owe more than the car is worth.  The result can be negative equity, also known as going “upside down” on your car loan.

Higher Interest: because you’ll be paying interest for 7 years instead of the more typical 5.5-6 years, you’ll end paying a higher finance charge in the long run, effectively increase the total amount you pay for your vehicle.  Additionally, some lenders will charge a higher interest rate for an 84 month car loan than they would for a 60 or 72 month loan.

For an 84 Month Car Loan, it’s Best if…

You’re the kind of owner who likes to drive the same vehicle for at least 5-5.5 years — this is how long it will take you to break even on the note if you want to trade in your car, truck, or SUV for something else.  If you get the itch to trade-in every 27-33 months, an 84 month car loan is not your best option.

You’re sure the vehicle you want will offer everything you need in terms of size, style, luxury, and amenities for the next few years. Remember this if you want a two-seat sports car but see a baby on the horizon, etc.

The monthly payments are relatively easy on your budget, and your financial situation is well-established. A lot can happen in 7 years with the economy, jobs, fuel prices, and other factors. Don’t lock yourself into a long-term loan that strains your budget.

You are quite comfortable with the monthly payment, the vehicle is just what you want, and you see yourself driving it for a long time to come.

Ready to Get Pre-Approved for 84 Month Financing?