Determine Whether Applying For 84 Month Auto Loan Is Right for You

Determine Whether Applying For 84 Month Auto Loan Is Right for You

While it is possible to find lenders which provide 84 month auto loan programs, prior to applying for such types of car finances, it is important that you know whether you can really benefit with them. It is needless to say that auto loans with repayment duration of 84 months or more are likely to have lower car payments as compared to a short term loan. Besides, opting for a 7 year car loan term is not always a desirable option as there may be some potential risks involved. By having knowledge of advantages and disadvantages of such auto loans, you may be much better placed for making an informed decision on your car purchase.


Borrowers consider applying for 7 year auto loan programs because of the following reasons.


  • Monthly car installments are easy to manage and sustain.
  • As monthly payments are low, cash follows are freed up every month. The surplus money can be used for repaying other high-interest credit debts.

Nevertheless, there are certain downsides to 84 month car loan financing as mentioned below.


  1. As loan duration is long, you can end up spending more money on interests all along the term.
  2. There is a likelihood of you may end up owing more on your vehicle than its actual market worth. Alternatively, it means that the chance of going upside down on a 7 year auto financing loan is much higher than that on a car loan with shorter duration.
  3. If you get a 5 year old used car financed with 84 month auto financing loan, the vehicle may need some repairs while you are still paying instalments. It will put additional burden on your finances.

Viable Alternatives to 84 Month Car Loans


  1. You can think of getting a car on lease to stay away from the hassles from auto loan financing with such long terms.
  2. If you have no other option but to apply for car finance with 84 months duration then you must select the right type of vehicle, preferably one which is less than 5 years old and in a very good running condition with excellent mileage.
  3. Rather than get 84 month car financing loan, you can consider applying for an auto loan with shorter loan duration. To qualify for the lowest and best interest rate, you can pay large down payment or get a creditworthy co-signer to co-sign the loan.

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