60 vs 72 Month Car Loan: Which Is Better?

A 72-month loan can make a car feel more affordable because the payment is spread over more months. The tradeoff is that interest continues for longer, and the loan balance may fall more slowly than the car value.

Advantages of a 60-month loan

A 60-month loan usually pays down faster and can reduce total interest. It may also help you build equity sooner, which matters if you sell, trade in, or experience an insurance loss before the loan is paid off.

Risks of a 72-month loan

The lower payment can hide the real cost. If the vehicle depreciates quickly, you may owe more than the car is worth for a longer period. That is called negative equity, and it can make the next purchase more expensive.

When a longer term may still make sense

A longer term may be reasonable if the APR is low, the vehicle is reliable, you plan to keep it long after payoff, and the total ownership cost still fits comfortably in your budget. Even then, compare total interest before deciding.

The calculator lets you switch between 60 and 72 months instantly so you can see the payment difference and the interest cost.