How do I choose the right loan term for my car loan?

Selecting the right loan term for your car loan depends on your financial goals and monthly budget. Here’s a breakdown to help you decide:

Shorter Terms:

• Benefits: Lower interest rates and less total interest paid over the life of the loan.
• Considerations: Higher monthly payments, which may require a more flexible budget.
• Best for: Borrowers who want to save on interest and pay off the loan faster.

Longer Terms:

• Benefits: Lower monthly payments, making it easier to manage your budget.
• Considerations: Higher interest rates and more total interest paid over time.
• Best for: Borrowers looking for smaller monthly payments and more financial flexibility.

While Call Federal offers terms up to 84 months, choosing a term of 72 months or less can save you money on interest. Your credit score, loan-to-value ratio (LTV), and the car model you choose may also impact the available terms.

Contact us today for personalized guidance on selecting the loan term that’s best for you!