When it comes to Subaru finance, the length of your car loan is known as the term. While some drivers can afford to pay for a new car in cash, the majority need to take out a financing plan.
In the past few years, loan terms have gotten longer and longer, because people are taking out larger loans that they need more time to pay back.
Here at our Subaru finance center, our professionals help Silver Spring drivers take out car loans that can last up to seven years.
Loan Terms and Monthly Payments
According to Edmunds data, the average loan term for a new car in March, 2020 was 70.6 months. The most common length is 72 months, with 84-month loans not far behind. At the high end, car loans can last up to seven years.
The main reason people choose these longer loan terms is that their monthly payments will be lower, but it is important to remember that these lower payments will last longer. Long-term loans will often cost borrowers more in the long-run, so if you have the financial ability to pay off your loan in a shorter timeframe, you should do so.
Whether you buy a new Subaru Forester or other Subaru model, you should also keep the interest rate in mind when taking out a car loan. The longer the loan term, the more interest you will pay on the loan, both in terms of the rate itself and the loan’s finance charges over time.
Silver Spring Subaru Financing
Here at Herb Gordon Subaru, our finance professionals are here to get you the loan that best meets your financial needs. Whether that’s a new car loan or a used car loan, we are here to help.
