96 Month Auto Loan - A Comprehensive Guide To Long-Term Financing

96Month and Subprime Auto Loans It is All Good Until… Crush The Street from www.crushthestreet.com

If you’re in the market for a new car but don’t have the cash to buy one outright, you’ve probably considered taking out an auto loan in order to finance your purchase. There are a variety of loan terms available, ranging from the traditional 36-month loan to more uncommon options like the 96 month auto loan. In this comprehensive guide, we’ll explore the advantages and disadvantages of a long-term loan and help you decide if this financing option is right for you.

What Is a 96 Month Auto Loan?

A 96 month auto loan is essentially the same as any other auto loan – it’s a loan taken out to purchase a car, and the borrower is expected to make regular payments on the loan over a period of time. The difference is that instead of the typical 36 or 48 month loan, this type of loan has a 96 month (8 year) repayment period.

The Pros and Cons of a 96 Month Auto Loan

As with any loan, there are both advantages and disadvantages to taking out a 96 month auto loan. Let’s take a look at a few of the pros and cons of this financing option.

Pros

Lower monthly payments – While the total cost of the loan will be higher due to the longer repayment period, the monthly payments are typically lower than they would be with a shorter-term loan.
Greater access to financing – Longer-term loans may be easier to qualify for, as lenders are typically more willing to lend to borrowers with lower credit scores.
More flexibility – With a 96 month auto loan, you have more time to pay off the loan, giving you the flexibility to make larger payments when you have extra money or to make smaller payments when money is tight.

Cons

Higher total cost – Since you’re taking longer to pay off the loan, you’ll be paying interest for a longer period of time, resulting in a higher total cost.
Risk of negative equity – With a longer-term loan, you may be “upside down” on the loan (owing more than the car is worth) for a longer period of time.
Less financial freedom – Since you’re making lower monthly payments, you may have less money to dedicate to other goals like saving for retirement or paying down other debts.

Is a 96 Month Auto Loan Right For Me?

A 96 month auto loan can be an attractive option if you’re looking for lower monthly payments and more time to pay off the loan. However, it’s important to consider the drawbacks of this type of loan as well. If you’re struggling to make ends meet, a 96 month auto loan may not be the best option for you. On the other hand, if you have a steady income and are confident that you can make your payments, a 96 month auto loan could be a great way to finance your car purchase.

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