For many drivers, shorter car loans are seeming less feasible than they used to be, and they’re finding that 72-month Toyota financing plans are a better fit. New cars last longer and feature more technology inside, which makes it possible to stretch your loan for longer and still drive an engaging, responsive vehicle. However, there are some drawbacks to consider before you pick your plan at Hall Toyota Virginia Beach.
Lower Monthly Payments
The biggest advantage of a 72-month loan is simple: more affordable monthly payments. However, keep in mind that those monthly payments are what help you stay ahead of depreciation on your car. Since depreciation isn’t adjusted for the length of your term, you will end up with negative equity on your car for longer with a lower payment.
More Interest
While you’re paying less month by month with a 72-month plan, you’ll ultimately spend more in interest. Use an online payment calculator to analyze how much extra you’ll end up paying in interest over the course of your term. The difference may be worth it if you plan to keep your Toyota vehicle during (or past) the whole length of your loan.
Warranty Coverage
New Toyota vehicles come with a three-year bumper-to-bumper warranty plan that will expire before a longer loan term is up. The powertrain warranty, on the other hand, expires after five years or 60,000 miles, at the end of a standard loan but before an extended-length loan ends. You may want to prepare for an extended ToyotaCare® plan when your warranty ends if you choose a 72-month plan.
Finance a New Toyota Car in Virginia Beach, VA
No matter what your financing situation looks like, we’ll find a plan that works at our Virginia Beach Toyota dealership. Stop by and talk to our expert team to explore your options in person. Walk around our showroom, find your next great car, and take it for a test drive today!
