If you’re looking into buying a car that you would like to pay off over time, it is important to pick the right type of loan. One of the big factors to think about is its length.
Our BMW finance center wants to help you make the right decision, so here’s what you should know about loan terms.
Loan Options
When looking to get a loan, typically you will have your choice of its duration starting at 24 months. They then go up incrementally by 12 months. 84 months is generally the longest type of loan that you can get, and the average loan term is around 60 months.
Short- or Long-Term?
Before deciding on a loan term, there are certain things you need to consider. If you want to pay off your vehicle as quickly as possible, clearly a short-term loan will let you do that. However, you have to remember that the shorter this is, the higher your monthly payments will be.
Conversely, a long-term loan could cut those payments significantly. The downside is that you will end up paying more in interest with additional payments. Think about how much you can reasonably afford to pay every month. Once you have this number, you should be able to make the best decision.
Any Financing Questions? Get in Touch with BMW of Catonsville
We understand that financing can be complicated. If you have any concerns or questions, please contact BMW of Catonsville to speak to one of our financing professionals. Or if you would like to start the process, you can fill out our online application to get pre-approved for a loan.