It’s safe to say that few of us would argue with paying less every month for our cars. It’s one reason many folks look at Subaru financing over 72 months instead of a traditional shorter loan term. However, while there are benefits to a six-year loan package, there are some drawbacks that you should be aware of. Herb Gordon Subaru explains both so you can make an educated decision.
Benefits of 72-Month Subaru Financing
One of the main benefits of spreading your Subaru financing over 72 months is that your monthly payments will be lower than with a 36 or 48-month loan. Depending on the market, you might also be eligible for a lower interest rate on the longer loan. Plus, if you find yourself with some extra cash over the course of the six-year loan life, you can always pay it off a little more aggressively without a pre-payment penalty.
Some people who want lower monthly payments might consider leasing their Subaru model instead of buying. While leasing is a great option for many drivers, you’re stuck looking for another vehicle when the lease ends. Taking out a 72-month loan gives you the best of both worlds: affordable monthly payments and full ownership when you’ve paid off the loan.
When Not to Take a Six-Year Financing Package
A six-year term might look tempting right now, but don’t jump in just yet. Even assuming the same interest rate as on a 36 or 48-month term, you’ll end up paying more in interest throughout the loan life. Six-year loans also aren’t ideal for drivers who will want a brand-new vehicle more frequently, or who need one sooner; the 72-month option means that your trade-in and down payment values can be wiped out, in whole or in part, by your remaining loan balance.
Make Smarter Subaru Financing Choices with Help from Herb Gordon
Get ready for affordable payments on an outstanding model and visit our Subaru dealership in Silver Spring, MD. Our finance experts are here to help you make informed choices. We can’t wait to help you find your favorite sedan or SUV and give you a custom offer!
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