• Refinance: If you get a better interest rate, you should consider refinancing your auto loan. You should avoid extending the tenure of the loan lower the monthly payments as it incurs higher interest rates.

• Research: You should evaluate the different loan amounts, tenures and interest rates offered to get the most affordable auto loan. You can consider a credit union to get the best interest rates and easy approval for the loan.

• Additional payments: If possible, you can consider making additional payment for your auto loan. This will shorten the overall loan tenure and subsequently lower the amount of interest that needs to be paid.  

• Do not skip a payment: It is imperative that you make the payment before or on its due date to avoid any late fees. Delaying a payment incurs more interest and increases the cost of the loan.

• Credit score: You should maintain a clean credit record to ensure a lower interest rate. Previous loans, bank accounts and all other financial transactions should be genuine. The agent will conduct a complete credit check to ensure that you will be able to pay back the loan amount and interest rate.

• Read the terms: It is advisable to read the terms and conditions carefully to ensure that you are getting the best deal. You should be acquainted with the exact loan amount, interest rate, monthly due dates and any other clauses that may affect your loan amount.

• Negotiate: You can consider discussing your budget and requirements with the agent to get the best deal. You can also inquire about any factors that can assist in reducing interest rates for the loan amount.

The loan period is one of the key considerations while deciding what kind of auto loan to get. While conventional long-term auto loans have been for 36-48 months, the 72-month auto loan is a relatively new option. Signing up for this loan means getting a period of 6 years to repay the loan, which translates into smaller monthly payments. However, these loans have been viewed skeptically, owing to the higher amount of interest paid in the long run, which results in the borrower having to pay a larger sum than he would, if he had opted for a shorter repayment period. The benefit of small monthly payments outweighs the amount of interest paid in case of 72 months installments. 

The bottom line is that 72-month auto loans are ideal for borrowers who would be at a great advantage, if they had to pay smaller monthly installments. An easy way to judge whether you can afford the car that you are buying, is to make sure that you are not spending more than half of your monthly income on your housing and car expenditures, including mortgage, repairs, servicing, taxes, etc. Going by this criterion, most people might end up buying a car that is in bad condition, because they cannot afford a better one. 

A 72-month auto loan liberates you from such constraints, by allowing you to buy a car that is in good condition, without having to worry about monthly installments that will burn holes in your pockets. While it is definitely a disadvantage that these loans end up with you paying a huge amount of interest, when you think of the benefit of not having to dry up your bank account, or put your household budget at stake, they end up being advantageous. Another great advantage of these loans is that most financial banks or institutions shall agree to give you one with minimal paperwork.

Moreover, you get a longer time to use your car without having to worry about it getting repossessed, as you might have to in case of a short-term loan. In addition, you can also refinance your car after a certain period, which would hasten the process of repayment. In case your financial situation improves in a few years, you could even repay the loan before the stipulated time, without having to pay a penalty, in most cases. 

To procure instant 72 Month Auto Loan in Central Texas, visit us at Greater Central Texas Federal Credit Union. We are located at 3305 E Elms Road, Killeen, TX 76542. You can also call us at 254-690-2274.

Cheap Auto Loan - 72 Month Auto Financing