Financing a car for 84 months is becoming more common as buyers look for ways to manage rising vehicle prices. Stretching payments over seven years lowers the monthly cost, making even higher end models seem more affordable. However, while this option might feel like a win in the short term, it comes with long term financial considerations that every buyer should understand.
In this guide, we’ll break down the benefits, risks, and practical tips to help you decide whether an 84 month car loan is the right move for your budget and lifestyle.
Why 84 Month Car Loans Are Gaining Popularity
Over the past decade, vehicle prices have surged due to inflation, advanced technology, and increased manufacturing costs. As a result, auto lenders have introduced extended loan terms to make cars more accessible.
By spreading payments over 84 months, buyers can:
Significantly reduce monthly payments
Afford higher priced vehicles
Keep more cash in their budget for other expenses
For example, a $40,000 car financed at 6% interest over 84 months might have a payment of around $585, compared to over $775 for a 60-month loan. That difference can be appealing, especially for those with tight budgets.
Pros of Financing a Car for 84 Months
1. Lower Monthly Payments
The most obvious advantage is the reduced payment amount. This allows buyers to manage cash flow better without feeling overly strained each month.
2. Access to Higher Value Vehicles
If you’ve had your eye on a luxury SUV, electric car, or fully loaded truck, an 84 month term can make it financially possible without overshooting your monthly budget.
3. Flexibility for Other Financial Goals
Because your monthly payment is lower, you can redirect extra money toward savings, investments, or paying off other debts.
Cons of Financing a Car for 84 Months
While the benefits are tempting, the drawbacks can outweigh them if you’re not careful.
1. Higher Interest Costs Over Time
A longer loan term means paying interest for more years. Even with a competitive rate, the total interest paid can be thousands more than a shorter loan.
2. Greater Risk of Negative Equity
Cars depreciate quickly, and with an 84 month loan, you could owe more than your car is worth for a significant portion of the term. This is risky if you plan to sell or trade in early.
3. Commitment for the Long Haul
Life circumstances change. Being locked into a loan for seven years can feel restrictive, especially if your income changes or you want to upgrade vehicles.
When Financing for 84 Months Makes Sense
There are scenarios where a long-term car loan can be a smart decision:
Stable Income: If you have a secure job and steady earnings, the long term commitment may be manageable.
Low Interest Rates: If you qualify for a rate below market average, the extra interest over time might be minimal.
Extra Payments Possible: If you plan to pay more than the minimum monthly amount, you can shorten the term and save on interest.
Smart Tips for Financing a Car for 84 Months
1. Negotiate the Purchase Price First
Before discussing financing, focus on getting the lowest possible price for the vehicle. This reduces the total loan amount and interest you’ll pay.
2. Compare Lenders
Don’t just take the dealership’s offer. Check banks, credit unions, and online lenders for better rates and terms.
3. Look for Prepayment Flexibility
Choose a loan without penalties for early repayment. This way, if your financial situation improves, you can pay off the loan sooner.
4. Consider a Larger Down Payment
The more you put down upfront, the less you’ll need to borrow, reducing interest costs and negative equity risk.
Alternatives to 84 Month Car Financing
If the potential downsides of an 84 month car loan outweigh the benefits in your situation, you still have several viable financing options that can help you drive the vehicle you want without locking yourself into a long-term auto loan.
1. 60 or 72 Month Loans
These loan terms still keep monthly payments at a relatively manageable level but significantly reduce total interest costs compared to an 84 month auto loan. They also help you own the car outright faster, giving you more flexibility to upgrade or sell sooner.
2. Leasing
Leasing is ideal for drivers who prefer to enjoy newer models every few years without making a long term commitment. While you won’t own the vehicle at the end of the lease, you’ll benefit from lower monthly payments and the latest features.
3. Buying Used
Opting for a certified pre owned vehicle can dramatically reduce your purchase price and financing requirements. This approach often means you can finance for a shorter term while still enjoying warranty coverage and a well maintained vehicle.
Impact of an 84 Month Car Loan on Your Credit Score
Choosing an 84 month car financing plan can influence your credit profile in both positive and negative ways.
Positive Effects:
Making consistent, on time payments will strengthen your payment history one of the most important factors in your credit score.
Successfully managing a long term loan can demonstrate financial responsibility to lenders.
Negative Effects:
Carrying high debt for an extended period can impact your debt to income ratio, which lenders consider when approving you for mortgages, personal loans, or even another vehicle purchase.
If your financial circumstances change, you may face difficulty keeping up with payments for the remaining term.
The Bottom Line: Is an 84 Month Auto Loan the Right Choice?
Whether an 84 month car loan is a smart move depends largely on your financial stability, lifestyle goals, and comfort level with long term debt. If you prioritize lower monthly payments and can commit to keeping the vehicle for the full term, long term financing can be a strategic choice.
However, if minimizing total interest costs and avoiding debt longevity is your goal, opting for a shorter loan term is often the better financial decision.
Before signing on the dotted line, compare offers from multiple lenders, calculate the total interest you’ll pay over the life of the loan, and weigh the impact on your future financial plans.
In many cases, a well negotiated 60 or 72 month loan, a lease, or buying a certified pre owned vehicle can provide a balance between affordability and financial freedom.
