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// the long-loan trap on wheels
48 vs 72 months: the real cost of the smaller payment.
Dealers quote the 72-month payment because it looks easy. Here's what the extra two years actually cost on the same car.
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Shorter auto terms get lower rates; 72-month and longer loans are priced higher.
72-month
48-month
Cumulative interest — both terms
Frequently asked questions
Why do 72-month car loans cost so much more?
Two compounding reasons: the balance accrues interest for two extra years, and lenders price long terms at higher rates. Total interest often nearly doubles versus 48 months.
What's the negative-equity risk on a long auto loan?
Cars depreciate faster than a 72-month loan amortizes, so you can owe more than the car is worth for years — a serious problem if it's totaled or you need to sell.
Is the 48-month payment affordable for me?
Compare the payment difference above against your budget. If 48 months doesn't fit, the honest conclusion is usually a cheaper car, not a longer loan.
Do these numbers include dealer financing markup?
Enter the APR you're actually quoted — including any markup. The math is the same regardless of who originates the loan.
What about 0% promotional financing?
Genuine 0% makes term length irrelevant to interest — but it usually replaces a cash rebate. Compare the rebate against the interest figures above at your bank's rate.
📖 Related guide: How lenders calculate your payment