60 or 72 months to finance your car?
At the dealership the conversation revolves around the monthly payment, and stretching the term always lowers it. What goes unsaid is how much extra interest that relief costs, and what it means for your equity.
The payment drops, the interest climbs
Financing $25,000 at 8.5%, the difference between 60 and 72 months is around $70 a month — but the longer term pays roughly $1,200 more in interest over the life of the loan.
The rule of thumb: the shortest term your budget comfortably absorbs is almost always the better total deal.
The negative equity trap
Cars depreciate faster than a long loan amortizes. At 72 or 84 months you can spend years owing more than the car is worth — that's negative equity.
If you want to trade during that window, the difference rolls into the next loan, and the problem chains forward.
When the long term does make sense
If the alternative is a payment that leaves no margin for emergencies, a longer term with a plan to pay extra principal can be reasonable — you pay like 60, with the flexibility of 72.
Make sure the loan has no prepayment penalty; most car loans don't.
Run the numbers before you sit down
The car payment calculator compares the five common terms side by side with your price, down payment and APR, and includes the month-by-month amortization table so you can see when you start building equity.