In addition to choosing the right Nissan model for you and your family, it is also vital to pick a Nissan financing plan that works with your personal budget and financing goals. Here at Hall Nissan Virginia Beach, our finance professionals will introduce you to several different loan-term options depending on factors such as the vehicle, lender, and credit approval. A 72-month auto loan can provide flexibility, but it is also important to consider the trade-offs.
Advantages of a 72-Month Auto Loan
The most obvious benefit of spreading a loan over 72 months is the potential for a lower monthly payment compared with a shorter loan using the same amount financed and interest rate. This can leave more room in your monthly budget for expenses like insurance, fuel, and maintenance. A lower monthly payment can also make it easier to manage your cash flow without choosing a vehicle based solely on the shortest possible financing term. If your 72-month loan allows for additional principal payments with a prepayment penalty, you can also choose to pay down the balance faster if your budget permits.
Potential Trade-Offs
A longer loan term generally means that you’ll pay interest for a longer time period. Depending on the interest rate, this can result in a higher total borrowing cost than financing the same amount with a shorter term. You should also consider equity. Vehicles lose value over time, and slower loan repayment can increase the chance that you owe more than the vehicle is worth during part of the loan. A six-year commitment can also be a drawback if your driving needs change or you wish to upgrade to a new Nissan model.
Discuss Your Nissan Financing Options in Virginia Beach, VA
Every driver has different Nissan financing requirements. The easiest route is to compare your options here at Hall Nissan Virginia Beach. Visit our dealership today!
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