Are you considering Toyota financing for your next new vehicle? Your auto loan length is an important factor in the decision-making process. Our financial experts at Sansone Toyota have a few tips to help.
Short-Term Loans
As a rule of thumb, it’s best to aim for an auto loan length of three to five years. Anything under three years is considered a short-term loan. Short-term loans will have higher monthly payments, but you’ll typically find better interest rates and pay less interest overall.
Long-Term Loans
Many lenders will give you the flexibility of stretching out your loan’s term to 72 or even 84 months. A longer term will, naturally, lower your monthly payments and could give you more options to choose from in your budget. However, it’s important to note, there are disadvantages to a long-term loan too:
- Interest rates increase in loans over 60 months
- You’ll end up paying more interest overall
- You run the risk of getting upside down in your loan
- You could end up still owing for a vehicle that you no longer want (or one with major issues)
Auto Payment Calculator
If you’re uncertain what works best for you, we encourage you to utilize an auto payment calculator. You plug in the total price of the vehicle that you’re interested in, and then adjust the varying factors (such as the loan length) to see how your auto payment would be affected.
Visit Our Woodbridge, NJ Dealership to Apply for Toyota Financing Today
There’s no better place to turn for Toyota financing than Sansone Toyota. We have relationships with a circle of trusted lenders, so we can easily help you secure a loan with your terms in mind. Stop in to get started today!
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