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    Home » 84-Month Auto Loan: What You Need to Know
    What Is an 84-Month Auto Loan?
    Auto Loans
    FinTopiAuthorBy FinTopiAuthorSeptember 22, 2022Updated:June 14, 2023No Comments9 Mins Read

    84-Month Auto Loan: What You Need to Know

    The average auto loan term is now a little bit over five years. But there are many people who prefer to get their vehicles paid off in an even longer time frame, and for them, an 84-month auto loan can be a smart move. In this article, we’ll tell you everything you need to know about these long-term auto loans.    

    If you are thinking of getting this long-term auto loan, there are some things you need to know first.  

    84-month vehicle financing is a good option if you want to buy a car or truck. The interest rate on them is usually lower than the interest rate on the other loans, as the terms are longer. You can also choose between biweekly payments or monthly payments depending on your financial situation.   

    Car financing for 84 months can allow even drivers who have bad credit scores or no credit history at all to access auto financing options. This is all due to the fact that lenders don’t always check credit scores when considering applications for this type of loan.  

    Nonetheless, if you are thinking of committing to these 84 months’ car payments, read the terms carefully before signing any paperwork. You should also talk to a qualified financial advisor to help you decide whether or not this is the best type for you.  

    Table of Contents

    • What Is an 84-Month Auto Loan?
    • How Does an 84-Month Auto Loan Work?
    • 84-Month Auto Loan: Advantages and Disadvantages
    • What Is the Interest Rate on an 84-Month Auto Loan?
    • Is an 84-Month Auto Loan Worth Taking Out?
    • Alternatives to 84-Month Auto Loan
    • Final Thoughts

    What Is an 84-Month Auto Loan?

    84-month car loans are a fixed-rate financing product that allows you to make monthly payments for a period of 84 months. This offers borrowers the ability to pay off their car purchases in manageable monthly installments over a longer period of time.  

    Even though they do offer lower interest rates the term length of an 84-month loan is longer than traditional 60 or 72-month loans, which means that you will likely end up paying more interest over time because there are more months of interest accruing on your balance. This can be especially important if you plan to hold onto your car for several years after purchasing it since it could result in significantly higher total costs at the end of the day compared with shorter-term financing options such as those offered by 36 or 48-month loans.  

    But, on the plus side, an 84-month auto financing offers more flexibility for the borrower. You can use the loan to purchase any model of car, and you can take out as much as you need.  

    How Does an 84-Month Auto Loan Work?

    When you take out a loan, you borrow money from the lender to pay for something. You then have to repay the amount you borrowed with interest over a period of time that’s agreed upon in advance. When you calculate how much interest will be paid over the life of your loan, it helps to know what kind of rate it has been set at and how many payments there will be until the debt is paid off.  

    With an 84-month auto loan, there are eight payments per year: four principal and four interest payments. The calculation looks like this: (Principal Amount x Interest Rate) + Principal Amount = Total Payment. The number of payments will vary depending on the terms you chose, but you can just use this formula to calculate the total costs.  

    84-Month Auto Loan: Advantages and Disadvantages

    When comparing this auto loan to other types, there are some factors that we should mention. Let’s take a look at both the pros and cons of auto loans for 84 months.  

    Advantages  

    • You can pay off your auto loan early. 
    • You will get to drive away in a new car at the end of your term with no money down.
    • You may be able to afford the monthly payment even if you have bad credit.  
    • It’s possible to finance new cars with low monthly payments.  
    • The money can be used for a variety of vehicles. You can use it to buy a car, a truck, or even a motorcycle. This means that you can find the perfect vehicle for your needs without having to wait weeks or months for a traditional loan.  
    • You may be able to get a car sooner than you would if you waited for a more traditional loan. This can be helpful if you need the car right away and don’t have time to wait for other options to become available.  

    Disadvantages  

    • You will have more interest paid over time compared to shorter-term loans.  
    • You may need to put some money down on your car purchase or pay extra fees such as an origination fee. 
    • There may be nothing left over for other financial priorities such as saving up for retirement or paying down other debts like student loans or medical bills.  

    What Is the Interest Rate on an 84-Month Auto Loan?

    For the most part, interest rates on an 84-month auto loan will be lower than they would be on a shorter-term loan. The reason for that is simple: If you can afford to pay off your car in two years, you’re more likely to keep on making payments until you’re finished with everything. This means that the monthly payment will be lower, but the total cost of the loan will be more.  

    In general, borrowers who are creditworthy have lower interest rates than those with lower scores. If you have excellent credit, the lender might give you 84-month auto loan rates of just 1% or 2% in interest each month and still get the same monthly payment as someone who has bad credit and pays 5%.  

    Is an 84-Month Auto Loan Worth Taking Out?

    It all depends on your situation and what type of auto loan or lease term you are looking for. Leasing is another option if you don’t want to own your car after the lease period ends. You can also see if taking out an 84-month auto loan is right for you by comparing the different types available. We suggest you look into a few factors before making a decision:  

    1. Interest Rate.  
    1. Term – the term on an 84-month auto loan is obviously longer than the term on a 30-month or 60-month auto loan. This can also be a big factor in deciding if this loan is worth taking out.  
    1. Loan amount – the amount you borrow on this auto loan is higher than the amount you borrow on a 30-month or 60-month auto loan.   
    1. Repayment schedule – The repayment schedule for an 84-month auto loan is more difficult than the repayment schedule for shorter auto loans. This can also be a big factor in deciding if auto financing for 84 months is worth looking into.  

    There are also some risks associated with 84-month auto loans that should be considered before making a decision. These risks include the possibility of not being able to repay the loan in full, high-interest rates if you decide to refinance or sell the car, and penalties if you roll over your loan from one lender to another.  

    In case you are still interested, we suggest you find a few reputable 84-month auto loan lenders to see how your options are. 

    Alternatives to 84-Month Auto Loan

    If you’re thinking about getting a long-term auto loan, it’s important to understand what your alternatives also are. As we explained above, an 84-month auto loan is not the best option for everyone. Here are some alternatives to consider:  

    1. 72-Month Auto Loan. This loan is perfect for people who want to buy a car but don’t want to take on too much debt. The interest rate is higher than the 84-month auto loan, but the term is shorter.  
    1. 60-Month Auto Loan. This is a great option for people who don’t need the full amount of financing available on an 84-month auto loan.   
    1. Refinancing your current car loan. If you have high-interest rates on your current car loans, refinancing them can save you thousands of dollars over time. This is also an option if you want to get rid of high monthly payments altogether.  
    1. Consider buying a used car instead of a new one as they tend to be on the less expensive side but still reliable enough – this will also cut down on overall costs by reducing taxes on used cars vs new ones. 
    1. Borrow from other sources instead of taking out an 84-month auto loan altogether. You may be able to borrow money from family and friends or ask for help from the bank by applying for a personal loan or credit card if you don’t need a big amount of money.  

    Final Thoughts

    When it comes to buying a car, there are many factors to consider. One of the most important things is whether or not an auto loan is worth it. When it comes to taking out an 84-month auto loan, it’s important to understand all the details before making a decision. Make sure you do your homework and research all available options so that you can make an informed decision that’s right for your financial situation. If possible, try to avoid taking out even longer-term loans because they’ll cost more in interest over time—but if this is what it takes for you to get into an expensive car right now without sacrificing much else like your savings, then go ahead!

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    The FinTopiAuthor, who prefers to remain anonymous for now due to privacy reasons, has a bachelor’s degree in finance and over 10 years of experience in financial planning and bank loans. For the last 3 years, they’ve been working as a freelance copywriter in the niche of financial products, investing, and money lending, with the special attention to pros and cons of different loan types. Besides an interest in financial topics, they’re keen on traveling and various adventures.

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    Table of Contents

    Table of Contents

    • What Is an 84-Month Auto Loan?
    • How Does an 84-Month Auto Loan Work?
    • 84-Month Auto Loan: Advantages and Disadvantages
    • What Is the Interest Rate on an 84-Month Auto Loan?
    • Is an 84-Month Auto Loan Worth Taking Out?
    • Alternatives to 84-Month Auto Loan
    • Final Thoughts

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