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An 84 month car loan is like any other car loan and it only lasts for 7 years, comes with high interest and low payments.

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With low monthly payments, an 84-month auto loan may seem like a good idea on paper. But those low car payments come at a real financial cost: interest. And while you’ll certainly pay more than a short-term loan, there are situations where 84-month car loans can make sense.

We at Auto Guides Group look at the pros and cons of these long loan terms and how the numbers can add up to a sound financial decision. This guide will help you understand how these loans work and where to find the best car loan rates and the best 84 month repayment schedule.

The Guide Group is committed to providing reliable information to help you make the best decision about financing your vehicle. Because customers depend on us to provide objective and accurate information, we have developed an extensive rating system to compile our ranking of the best car loan companies. We’ve collected data from dozens of loan providers to rate companies on a wide range of factors. After 300 hours of research, the final result was a total score for each provider, with the companies that received the most points on the list.

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An 84-month car loan gives you seven years to repay the lender. While a shorter term is more appropriate, the average term in the American car market is 72 months, according to Edmunds.

As car prices rise, 84 month car loans are becoming more popular. Spreading your car payments over a longer period of time can lower your monthly obligation – often significantly. The downside is that with those lower monthly payments comes more interest generation, and other potential risks.

Auto loans that last 84 months are more common than they used to be. However, it is not as common among lenders as terms of 24 to 72 months. You have a few options for an 84 month car loan.

Traditional banks are often the first to stop when borrowers shop for auto loans. With most major banks now offering 84 month financing, it may be worth seeing if yours is one of them.

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Some banks will give you a discount on your car loan rate if you have a checking account, savings account, credit card or other financial account with them. Even if your bank doesn’t have one, it’s easy to have all your banking in one place.

Credit unions offer many of the same benefits as commercial banks, but in the form of member-based organizations. While credit unions may offer lower rates and fewer fees, they require membership based on certain criteria to access their loan products.

Credit union membership requirements range from working for a specific employer to making a donation to an approved charity to paying a membership fee. Most operate nationwide and offer 84-month auto loans as part of their portfolio.

You can even go the digital route for an 84 month loan. As more people buy cars online, online lenders are becoming a popular source of financing. You will find many options that offer longer loan terms.

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And just because online lenders don’t have physical branches doesn’t mean they aren’t reputable providers. Most are backed by established banks, and some are even online loans from a major bank.

With a lending marketplace, rather than applying with individual lenders, you enter your information on a portal and wait for a loan to be offered.

In addition to reducing legwork, this option allows you to compare loan offers in one place. However, if you use one of these marketplaces, research the lenders carefully. While you will get offers from established lenders, you can get offers from more reputable people.

Most car dealers offer their own financing options, and many offer 84-month car loans. You can get more money on a long-term car loan. Dealers – especially dealerships – sometimes offer 0% car finance, even on long-term loans.

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Don’t just assume you’re going to get the best deal from a dealer. Car buyers can get the best interest rates from dealers.

Current car loan interest rates can be anywhere from 5.18% to 21.32% on average. 84-month car loan rates are typically on the high side and vary widely based on the lender you choose and other factors.

While the length of the term is a factor in the total value of your loan, it is not the only one. Credit scores are the main factor used to determine pricing and whether the vehicle is new or used, as well as your credit history. The graph below shows the average interest rates for new and used car loans based on different credit scores, according to data from Experian.

Below you can compare the rates and terms of 84-month car loans with those for shorter terms. When you use this car loan calculator, you can get the benefits of your estimated monthly payment.

Average Car Loan Interest Rates By Credit Score (september 2023)

* The calculators used on this website are provided for educational purposes only. Details will not be collected or stored. The results are estimates based on the information you have provided and may not reflect the actual values ​​of your quote.

There are many reasons why an 84 month car loan may not be the best option. Here are a few of them:

Signing up for an 84-month car loan comes with serious complications. There are a few things to consider before you pick one up.

The downside of an 84-month car loan is that you will pay more in interest over the life of the loan. Longer loan terms tend to have higher interest rates, but they can increase the total interest you pay in other ways.

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Because you’ll pay less each month, you’ll pay less of your principal on the first loan you borrowed. As a result, you will pay more interest the longer you start your loan.

The table below shows how different loan terms affect the total amount of interest that will be paid on a loan of $25,000 with 5.2% interest.

Paying more for your car than you deserve is known as underpaying on your car loan. This state of negative equity, also known as being underwater, is a dangerous place to be. It puts you at risk of making loan payments on a car you no longer own if it is totaled.

The length of time you spend looking down depends on how much you put down on the vehicle, the term of your loan and how quickly your vehicle depreciates. Taking out an 84-month car loan can leave you underwater for years.

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Once you pay off the car loan, the remaining equity in your vehicle is a financial asset. However, the older your vehicle is and the more miles it has, the lower the value.

With an 84-month loan, you’ll pay for your car over seven years. Even if you buy a brand new vehicle, your car will be more than seven years old by the time you pay it off. While it will have some value, it will be much lower than when the car was new.

Despite its many drawbacks, an 84-month car loan can be a good option for you in certain situations, such as:

Despite the drawbacks, there are some advantages to 84 month car loans. Depending on your situation, a longer term loan may work for you.

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The main benefit of an 84 month loan is that you will have a lower monthly payment. Even if you can pay more now, your financial situation can change quickly. Having a low monthly payment can protect you from the risk of defaulting on your loan and losing your car.

Sometimes, getting an 84-month car loan is necessary. It is useful to remember that

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