Longer loan lower interest rate, or shorter loan higher interest rate?

Follow

Sean O'Donnell

• August 12, 2022 16:19

Hi,

I'm a first time car buyer with mediocre credit. I have been offered two choices from different lenders (one being the dealership guy)

1. 5% fixed over 72 months

2. Credit Union, 10.49% at 60mos

Same car.

Thoughts?

1

• Official comment

  

  Victor D

  • August 14, 2022 17:59

  Hey Sean!

  Thanks for posting.

  I recommend checking out our Loan Comparison Calculator.

  It lets you compare the monthly cost and total cost of each loan, so there is no guessing involved! 

  This article may be helpful as well: How to Get a Car Loan - NerdWallet

  We hope you enjoy your new car! 

  Best Regards,

  Victor

  Comment actions Permalink
• 

  Annette Hall

  • August 18, 2022 20:34

  Always lower interest rate if there is not an early payoff penalty. You can still pay it off in 60 months but half the interest rate saving a lot of money.

  1

  Comment actions Permalink
• 

  Sean O'Donnell

  • August 18, 2022 20:50

  Thanks Annette and Victor, I went with the lower rate and will save about 6 grand -- many thanks!!

  -First Time Buyer

  0

  Comment actions Permalink

Please sign in to leave a comment.