do dealerships offer 84 month financing

Stretching Your Car Dreams: Can You Really Finance for 84 Months?

You’ve found the perfect car – shiny, sleek, and everything you’ve ever wanted in a vehicle. But then reality hits: the price tag. Suddenly, that dream car feels a little out of reach. Enter the tempting world of long-term financing, where deals boasting 84 months (that’s a whopping seven years!) might make your eyes light up.

But before you jump into this seemingly dreamy scenario, let’s break down whether dealerships actually offer these extended payment plans and what you need to consider.

Do Dealerships Offer 84-Month Financing?

The short answer is yes, many dealerships do offer financing options that stretch for as long as 84 months. However, this isn’t a universal guarantee. The availability of such extended terms depends on several factors:

* Your Credit Score: Lenders are more likely to approve longer loan terms for borrowers with excellent credit scores. A strong credit history demonstrates your reliability and minimizes the lender’s risk.
* The Vehicle’s Age and Price: Newer cars, especially those with higher price tags, are more likely to qualify for extended financing.

The Allure of Long-Term Financing

The appeal of an 84-month loan is undeniable: lower monthly payments! Spreading the cost over seven years can make even a pricey car seem more affordable, freeing up your budget in the short term. This can be particularly tempting for those on a tight budget or first-time buyers navigating their initial car purchase.

The Potential Pitfalls of 84-Month Financing:

While longer loan terms sound appealing, it’s crucial to understand the potential downsides:

* Higher Total Interest Costs: Stretching out your payments means you’ll be paying interest for a significantly longer period. This can translate into thousands of extra dollars in interest charges over the life of the loan compared to shorter-term financing options.

* Being “Upside Down” on Your Loan: With an 84-month loan, there’s a higher chance that you’ll owe more on the car than it’s actually worth for a considerable portion of the loan term. This means if you need to sell or trade in your vehicle before the loan is paid off, you could end up owing money even after selling the car.

* Increased Risk of Negative Equity: If unforeseen circumstances arise and you can no longer afford your monthly payments, being “underwater” on your loan makes it harder to get out from under the financial burden.

Making an Informed Decision

Ultimately, whether an 84-month financing option is right for you depends on your individual circumstances and priorities.

Here are some questions to ask yourself before signing on the dotted line:

* Can I afford higher monthly payments over a shorter term?

Explore options with shorter loan terms (60 or 72 months) and compare the difference in monthly payments. Sometimes, even a slight increase might be manageable in the long run.
* What are my long-term financial goals?

Think about other financial priorities, like saving for a down payment on a house or investing. Long-term car debt could hinder your progress towards these goals.
* How likely am I to keep this car for 7 years?

If you tend to trade in vehicles frequently, an 84-month loan might not be the best fit. You could end up owing more than the car is worth when it’s time for an upgrade.

Talk to Your Lender:

Discuss your situation with a trusted financial advisor or lender who can help you analyze different financing options and choose the one that best aligns with your financial goals and risk tolerance.

Remember, while an 84-month loan might seem tempting, it’s crucial to weigh all the pros and cons before making a decision. Don’t let the allure of low monthly payments cloud your judgment. By carefully considering your individual circumstances and seeking professional advice, you can make an informed choice that puts you on the road to owning your dream car without driving yourself into unnecessary debt.