Open navigation Main Menu Mortgages

Financing a home purchase Refinancing your existing loan Finding the right lender Additional Resources
Looking for a financial advisor? Try our three minute test and connect the advisor you want today.



Main Menu Banking

Compare Accounts Use calculators Get help from bank reviews
Looking for a financial advisor? Try our three minute test and match to an adviser today.



Main Menu Credit cards

Compare according to category Compare by credit needed Compare by issuer Get advice
You're looking for the ideal credit card? You can narrow your search using CardMatch(tm)



Main Menu Loans

Personal Auto Loans, Loans for Students, and Loans to Autos Loan calculators
Find a personal loan in 2 minutes or less. Answer a few questions to be offered loans, with no impact on the credit rating.



Main Menu Investing

Best of Brokerages and robo-advisors Learn the basics Additional resources
Looking for a financial advisor? Try our three minute test and then match up to an adviser today.



Main Menu Home equity

Get the best rates Lender reviews. Calculators. base
Looking for a financial advisor? Try our three minute test and match with an advisor today.



Main Menu Real estate

Home selling or buying homes Finding the right agent Additional resources
Looking for a financial advisor? Take our 3 minute quiz and connect to an adviser today.



Main Menu Insurance

Car Insurance Homeowners insurance Other Insurance Company reviews
Looking for a financial advisor? Take our 3 minute quiz and connect to an adviser today.



Main Menu Retirement

Accounts and retirement plans. Learn the basics Retirement calculators Other resources
Looking for a financial advisor? Take our 3 minute quiz and then match up to an adviser today.



Search open Close search

Submit


What is the length of your car loan be? Advertiser Disclosure Advertiser Disclosure We are an independent, advertising-supported comparison service. Our mission is to help you make better financial choices by offering interactive tools and financial calculators that provide objective and original content. We also allow you to conduct your own research and compare information for free - so that you can make informed financial decisions. Bankrate has agreements with issuers such as, but not limited to American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Make Money The offers that appear on this website are provided by companies that compensate us. This compensation may impact how and when products are featured on this website, for example for instance, the sequence in which they appear in the listing categories and other categories, unless prohibited by law. Our loan products, such as mortgages and home equity and other home loan products. However, this compensation will have no impact on the information we publish, or the reviews you see on this site. We do not cover the vast array of companies or financial deals that may be available to you.



SHARE:

FG Trade/Getty Images
4 min read . Published August 19, 2022
Expert verified How is this page expert verified?
At Bankrate we ensure the accuracy of our content very seriously. "Expert verified" means the fact that our Financial Review Board thoroughly evaluated the content for clarity and accuracy. Its Review Board comprises a panel of experts in finance whose goal is to make sure that our content remains impartial and balanced. Their reviews make us accountable for releasing quality and reliable content.




Written by Bankrate Written by

This article was written with the help of automation technology, and then checked for accuracy and editing by an editor from our editorial staff.







The edit was done by Rhys Subitch Edited by Auto loans editor

Rhys has been writing and editing for Bankrate from late 2021. They are passionate about helping readers gain confidence to manage their finances with concise, well-researched and well-written information that is broken down into complex subjects into digestible pieces.







Reviewed by Mark Kantrowtziz Reviewed by Nationally known student financial aid expert

Mark Kantrowitz is an expert on student financial aid including the FAFSA and scholarships, 529 plans, education tax benefits and student loans.









The Bankrate promise
More details
At Bankrate we strive to help you make smarter financial decisions. While we are committed to strict editorial integrity ,
This post could contain some references to products offered by our partners. Here's an explanation for how we earn money .

The promise of the Bankrate promise
Founded in 1976, Bankrate has a proven track record of helping people make wise financial choices.
We've earned our reputation for more than 40 years by simplifying the process of financial decision-making
process, and giving people confidence in which actions to follow next. Bankrate follows a strict ,
You can rest assured that we're putting your interests first. All of our content was written with and edited ,
They ensure that what we write will ensure that our content is reliable, honest and trustworthy. We have a team of loans journalists and editors are focused on the areas that consumers are concerned about the most -- the various kinds of lending options and the most competitive rates, the most reliable lenders, ways to repay debt, and more -- so you can feel confident when making your investment.



Editorial integrity
Bankrate adheres to a strict code of conduct , so you can trust that we put your interests first. Our award-winning editors, reporters and editors provide honest and trustworthy content that will assist you in making the right financial choices. The key principles We value your trust. Our aim is to provide readers with reliable and honest information. We have established editorial standards to ensure that happens. Our reporters and editors thoroughly check the accuracy of editorial content to ensure the information you're reading is true. We keep a barrier between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers. Editorial Independence Bankrate's editorial staff writes in the name of YOU - the reader. Our goal is to provide you the best advice that will assist you in making smart personal financial decisions. We follow strict guidelines to ensure that our editorial content isn't affected by advertisements. Our editorial team is not paid direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. Therefore, whether you're reading an article or review, you can trust that you're getting credible and reliable information.



How do we earn money?
You have money questions. Bankrate can help. Our experts have been helping you master your finances for more than four years. We continually strive to provide consumers with the expert advice and tools needed to be successful throughout their financial journey. Bankrate follows a strict standard of conduct, which means that you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate information to assist you in making the best financial decisions. The content created by our editorial team is factual, accurate, and not influenced by our advertisers. We're open about how we are in a position to provide quality content, competitive rates, and helpful tools to you by explaining how we earn our money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We receive compensation for the placement of sponsored products and, services, or by you clicking on certain links posted on our website. So, this compensation can affect the way, location and in what order products appear in listing categories, except where it is prohibited by law for our mortgage or home equity products, as well as other products for home loans. Other factors, like our own website rules and whether or not a product is available in your region or within your own personal credit score can also impact how and where products appear on this website. Although we try to offer the most diverse selection of products, Bankrate does not include specific information on every credit or financial product or service.



Deciding on the duration of the financing for your car is an important factor when you are trying to choose the ideal auto loan. A longer loan term will lower the monthly payment, but you will pay more in interest over the life that of the loan. A shorter loan period means that you'll pay less overall interest, however, your monthly payments will be more expensive. How to determine the right duration of the loan? When you are selecting the length of your car loan, consider the length of the loan duration in relation to the cost of the car as well as your financial situation. A longer loan period will reduce the amount of your monthly payments but may not be the ideal choice for those who can afford a higher loan cost or prefer purchasing a car that is less costly. Bankrate's advice: It's essential to look at your budget and both the transaction as well as the maintenance costs before you purchase the car. Apply for an auto loan with your bank or credit union prior to shopping for a car. To find the right duration for your car loan, follow these steps: Establish your budget. It should be your monthly budget as well as the amount you'd like to put aside for the vehicle itself. Think about the possibility that your situation is likely to change and take that into consideration. Make sure you are prequalified with three lenders. Shopping around can aid you in obtaining the lowest interest rate. A partnership with your local credit union could afford you lower monthly payments, especially in the case of an existing relationship. Check the total amount of rates of interest. Take your prequalification results and then plug them into the calculator to determine the amount you'll have to be paying each month, and the amount of interest you will pay in the long run. Make a decision. Think about both the monthly payments as well as the total cost when deciding which loan duration is the best for your needs. The long-term loan is more expensive than the short-term loans While a longer loan will offer the ability to buy a more expensive vehicle, it does mean more interest over a longer duration. So even though the monthly payment is lower however, the total cost will be more costly. The shorter loan however, on the other side, has lower interest and a more expensive cost per month. In the event that your financial plan doesn't seem spot in the right place, or if there's a sudden change to your earning capacity, you may end up struggling with those payments. There is no perfect loan length that is suitable for all drivers, therefore, you should consider the advantages and drawbacks of each before making a decision on your next vehicle. Benefits and drawbacks of a long-term auto loan A is an excellent option for those who's budget can't cover a higher monthly payment. Since your monthly installment will be lower, it might also allow you to pay for an expensive car. With a more lengthy auto loan, you will pay higher interest in the long run. A longer-term loan also increases the likelihood of finding yourself on your loan or owing more than the vehicle is worth. This can result in selling or trading in the car more complicated. The advantages and disadvantages of a short-term auto loan Where longer-term auto loans can mean an excessive sum of money in interest charges, a shorter-term loan implies less interest overall. This also means that your vehicle will be yours much faster. Additionally, cars are upgraded vehicles are sold at a faster rate over the first five years, so it's highly unlikely that you'll end up paying more than the car is worth over a long time. If you're on a tight budget taking out an immediate loan is not a wise choice. This is especially true if you don't have a substantial . To avoid this, keep away from costly cars that may strain your budget. There are many reasons to think about a less loan duration There are many reasons to consider signing off on the shorter loan. You'll be able to pay off your loan sooner, meaning you can take full advantage of the vehicle you've purchased and won't be left with an enormous loan due to. Take into consideration these factors when deciding the length of your loan. Less years to pay longer loan term could mean making payments for between five and seven years. A shorter, two-to four-year term will put you in complete possession of your car much sooner, which means you'll get the money back in your monthly budget , and you can make use of it to pay down high-interest debts or to save. You're less likely to be upside-down with your loan If you're looking to change or sell your car, you will be more flexible in making the switch. You likely won't have a higher balance than your car is worth which makes it much easy to sell it to get another vehicle. Greater resale value the lower risk of getting in a position of being upside down on your loan paying off your car sooner is a sign that it's worth more once you've finished making payments. So if your financial situation alters and you're forced to upgrade -or just want something fresh -- you'll be able to receive more than if you were to wait five to seven years. The main thing is to think about the amount of car you can truly afford. Beyond the total cost of the loan, consider how much you can put towards your car each month, which includes gas and insurance. A shorter loan might not always be an option for the car you've always wanted. But if a similar model is more affordable and will prevent you from taking out the longer-term loan, it may be worth the sacrifice. Whether you opt for either a shorter or longer-term ensure that you obtain the best price possible. Find out more


SHARE:
Written by

This article was generated by using automated technology. It was then thoroughly edited and fact-checked by an editor from our editorial team.



Editor: Rhys Subitch Edited by Auto loans editor

Rhys has been editing and writing for Bankrate since the end of 2021. They are enthusiastic about helping readers gain the confidence to control their finances with precise, well-studied information that breaks down complicated topics into manageable bites.






Auto loans editor


Reviewed by Mark Kantrowtiz Reviewed by Nationally recognized expert on student financial aid

Mark Kantrowitz is an expert on student financial aid, the FAFSA, 529 plans, scholarships, education tax benefits and student loans.






Nationally acknowledged expert in student financial aid




Similar Articles: Auto Loans 6 min read Mar 02, 2023.

Auto Loans read in 4 minutes 30 January 2023

Auto Loans 5 minutes read Dec 23 2022

Auto Loans: 3 minutes read August 10 2022






About
Help
Legal Cookie settings Don't sell my personal information
How we make money Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated for placement of sponsored products and services, or for you clicking certain links posted on our website. Therefore, this compensation may influence the manner, place and when products appear within listing categories, except where it is prohibited by law in the case of our home equity, mortgage and other home loan products. Other factors, like our own proprietary website rules and whether or not a product is offered in the area you reside in or is within your personal credit score can also impact how and where products appear on this site. While we strive to provide the most diverse selection of products, Bankrate does not include details about each financial or credit item or service. Bankrate, LLC NMLS ID# 1427381 | BR Tech Services, Inc. NMLS ID #1743443 |
|

(c) 2023 Bankrate, LLC. A Red Ventures company. All Rights reserved.

Should you have any kind of queries regarding in which and how you can employ same day online payday loans florida, it is possible to e mail us at the site.