Is it possible to finance a new car for 84 months


Is It Possible to Finance a New Car for 84 Months?

When it comes to financing a new car, there are a lot of options available to consumers. One common question that arises is whether it is possible to finance a new car for 84 months. In this article, we will take a closer look at this question and explore the pros and cons of such a long-term financing option.

Understanding Car Financing Terms

Before diving into the details of a long-term car loan, it is important to have a basic understanding of car financing terms. When you finance a car, you are essentially borrowing money from a lender to purchase the vehicle. The borrowed amount, along with interest, is then repaid over a specific period of time, known as the loan term.

The loan term is typically measured in months and can vary depending on the lender, your credit history, and other factors. The most common loan terms for car financing are 36, 48, 60, and 72 months. These terms allow consumers to spread out the payments over a reasonable period of time while still being able to pay off the loan in a reasonable amount of time.

Pros of Financing a New Car for 84 Months

Financing a new car for 84 months can have several advantages. The main benefit is that it allows for lower monthly payments compared to shorter loan terms. This can be appealing for individuals on a tight budget or those who prefer to have a lower monthly payment.

Another advantage of an 84-month loan term is that it may allow consumers to afford a more expensive car than they could with a shorter loan term. The longer loan term spreads out the payments over a longer period of time, making a higher-priced vehicle more feasible.

Additionally, financing a car for 84 months can provide flexibility for consumers. If unexpected financial challenges arise, having a lower monthly payment can help ease the burden.

Cons of Financing a New Car for 84 Months

While there are advantages to financing a new car for 84 months, there are also some drawbacks to consider.

The main disadvantage is the overall cost of the loan. By extending the loan term, you will end up paying more in interest over the duration of the loan. This is because interest accrues over time, and the longer the loan term, the more interest you will pay.

In addition, an 84-month loan term may result in negative equity. Negative equity occurs when the value of the car decreases faster than the rate at which you are paying off the loan. This can lead to owing more on the car than it is worth, which can be problematic if you decide to sell or trade in the vehicle before the loan is fully paid off.

Another potential drawback is that long-term loans may lead to a higher interest rate. Lenders may charge higher interest rates for longer loan terms due to the increased risk associated with longer repayment periods.

Alternatives to 84-Month Financing

If financing a new car for 84 months doesn't seem like the best option for you, there are alternatives to consider.

One alternative is to save up for a larger down payment. By putting more money down upfront, you can reduce the amount you need to borrow and potentially qualify for a shorter loan term with lower interest rates.

Another option is to consider a certified pre-owned (CPO) car instead of a brand new one. CPO cars are typically newer models that have undergone a thorough inspection and come with extended warranty coverage. Financing a CPO car may offer more affordable loan terms and lower monthly payments.

Finally, it is always a good idea to shop around for the best financing rates and terms. Different lenders may offer varying loan options, so it is worth doing some research and comparing offers before making a final decision.


Financing a new car for 84 months can be an attractive option for some consumers, as it allows for lower monthly payments and the ability to afford a more expensive vehicle. However, there are also drawbacks to consider, such as the overall cost of the loan and the potential for negative equity.

Before deciding on a loan term, it is important to carefully consider your budget, financial goals, and long-term plans. Taking the time to evaluate all options and alternatives will help ensure that you make the best decision for your individual circumstances.


  • 1. Can I finance a used car for 84 months?

    While it is possible to finance a used car for 84 months, it may be more challenging to find lenders that offer such long loan terms for used vehicles. Additionally, the interest rates for used car loans may be higher compared to new car loans.

  • 2. What are the advantages of shorter loan terms?

    Shorter loan terms, such as 36 or 48 months, typically result in lower overall interest costs and allow you to pay off the loan faster. Additionally, shorter loan terms may offer lower interest rates and provide more flexibility in terms of trading in or selling the vehicle.

  • 3. How can I determine if I can afford an 84-month car loan?

    Before committing to an 84-month car loan, it is important to carefully evaluate your budget and financial situation. Consider your monthly income, expenses, and other financial obligations to determine if the monthly payment is manageable in the long term.

  • 4. Can I refinance an 84-month car loan?

    Yes, it is possible to refinance an 84-month car loan. Refinancing involves replacing your current loan with a new loan that has more favorable terms, such as a lower interest rate or shorter loan term. However, it is important to consider the costs and benefits of refinancing before making a decision.

11 October 2023
Written by John Roche