Length of Car Loans

After you decide where you'll be financing your car and how much you'll be putting towards your down payment, you'll need to take a look at the different lengths of car loans that are offered. Traditionally, companies that offer car loans will finance a car for anywhere from 12 to 72 months, although some companies have been offering car loans for up to 84 and sometimes even 96 months. While a 96-month auto loan may seem like a great way to keep your car payment to a minimum, it's also the best way to get yourself turned upside down (you owe more than the vehicle is worth) on your car loan.

If you decide to sell your car a couple of years after you purchase it, chances are good that you're still going to owe more on the car than what the car is worth and you're going to have a hard time trying to sell it. Do yourself a favor and finance your vehicle purchase over the shortest possible time, while still being able to afford the monthly payments.